When a Product Has Completed the Manufacturing Process What Is

question 32

Multiple Choice

When a product has completed the manufacturing process what is the journal entry to record the transfer of its cost?

• A)debit to Cost of Goods Sold credit Work-in-Process
• B)debit to Finished Goods credit of Work-in-Process
• C)debit to Cost of Good Sold credit to Finished Goods Inventory
• D)debit to Work-in-Process Inventory credit to Finished Good Inventory

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Definitions:

Debits

Accounting entries that represent an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Credits

Recognition or acknowledgment for something received or accomplished, often used in finance to denote money received or a decrease in liabilities.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits including money, goods, or services.

Common-Size Financial Statement

A financial statement that includes a percentage breakdown of each item.