Question

The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:
Work in Process, Department Y XXX
Work in Process, Department Z XXX
1. True
2. False

Answer 1

Answer: True.

Explanation: The journal entry would be made with processing cost system when the units would have been completed in respect to the work done. The statement is " true".

Processing cost system is used when nearly identical product are produced in mass. The process costing can be described as one method of assigning manufacturing cost to unit produced.