Chapter 3, Problem 13QS

To determine

Work in process inventory:

Work in process inventory referred to inventory which is yet to be completed and are still in the production process waiting to be completed.

To prepare: Journal entry.

Explanation:

Transfer of units from assembly department to painting department:

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
	WIP inventory painting		20,700
	WIP inventory assembly			20,700
	(To transfer cost pertaining to goods across different departments.)

• WIP inventory account is a part of inventory account and is classified under current assets in the balance sheet.
• Being a current asset the account which is increasing after the transfer of units will be debited and the account which is reducing after the transfer of units will be credited.
• WIP inventory painting account where units are being transferred will be debited.
• Similarly, WIP inventory assembly account which is transferring the units will be credited.