The Following Journal Entry Would Be Made in a Process

question 99

True/False

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:
$$\begin{array} { | l | l | l | } \hline\begin{array} { l } \text { Work in process, } \\\text { department } Y\end{array} & \mathbf { X X X } & \\\hline \begin{array} { l } \text { Work in process, } \\\text { departmentZ }\end{array} & & \mathbf { X X X } \\\hline\end{array}$$

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Definitions:

CCA Rate

The rate at which a business can claim Capital Cost Allowance, which is depreciation for tax purposes.

Marginal Tax Rates

This is the percentage of tax applied to your next dollar of income, varying with taxpayers' income levels within defined tax brackets.

Eligible Dividends

Eligible dividends are those paid by Canadian corporations to Canadian residents, which are eligible for an enhanced dividend tax credit.

CCA Rate

Capital Cost Allowance Rate; a percentage used to calculate the yearly depreciation of tangible property for tax purposes in Canada.