When a Bakery transfers goods from the Mixing Department to the Baking Department, the accounting entry would be ________.
A) Debit: Work in Process - Mixing Department Credit: Work in Process - Baking Department
B) Debit: Work in Process - Baking Department Credit: Accounts Payable
C) Debt: Work in Process - Baking Department Credit: Work in Process - Mixing Department
D) Debt: Work in Process - Mixing Department Credit: Accounts Payable

Question

Quizplus · Accepted Answer

The correct entry for transferring goods from one department to another within the same company is to debit the receiving department's work in process account and credit the sending department's work in process account. This reflects the movement of costs from one production stage to the next.

When a Bakery Transfers Goods from the Mixing Department to the Baking