When a bakery transfers goods from the Baking Department to the Decorating Department,the accounting entry is:

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 internal movement of goods and the associated costs from one production stage to another without involving external transactions or accounts payable.

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