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

question 129

Multiple Choice

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

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Definitions:

Net Pay

Gross earnings, less deductions. Net pay, or take-home pay, is what the worker actually takes home.

Wages and Salaries Payable

Liabilities for wages and salaries that have been earned by employees but have not yet been paid.

Federal Income Taxes Payable

The amount of income tax that a company or individual owes to the federal government and has not yet paid.

Payroll Taxes Payable

Liabilities owed to tax authorities for employee taxes withheld and employer payroll taxes; to be paid within a specified period.