Question

In Process Costing, the journal entry to record the cost of goods transferred out from the WIP shaping department to the WIP packaging department would be a debit to WIP - shaping department and a credit to WIP - packaging department. True False

Answer 1

Answer:

Journal entry :

Date Account and explanation Debit credit

                WIP-Packing department XXX  

                WIP-Shaping department            XXX

(To record cost of goods transferred out from the WIP shaping department to the WIP packaging department )  

So above statement is False

Explanation: