When a Bakery transfers goods from the Mixing Department to the Baking Department,the accounting entry is ________.
A) Work in Process - Mixing Department Work in Process - Baking Department
B) Work in Process - Baking Department Accounts Payable
C) Work in Process - Baking Department Work in Process - Mixing Department
D) Work in Process - Mixing Department Accounts Payable

Question

Quizplus · Accepted Answer

When goods are transferred from one department to another department in a manufacturing process, the accounting entry is a transfer between two work in process (WIP) accounts. In this case, the goods are being transferred from the Mixing Department to the Baking Department, so the entry should be Work in Process - Baking Department debit and Work in Process - Mixing Department credit. Option C is the only choice that has this accounting entry. Option A has the opposite entry and is therefore incorrect, and options B and D involve accounts that are not relevant to this transaction.

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