Finished Goods Inventory Is Debited and Work in Process Inventory

question 118

Multiple Choice

Finished goods inventory is debited and work in process inventory is credited for:

• A)purchase of goods on account.
• B)transfer of goods to the finished goods storeroom.
• C)transfer goods out of the factory.
• D)transfer of material to work in process inventory.

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Definitions:

Follow-up

The process of maintaining contact with customers or clients after a transaction to ensure satisfaction or to continue the relationship.

New Customer

An individual or entity that purchases products or services from a business for the first time.

Administrative Costs

Expenses related to the general operation of a business, including office management, clerical work, and executive salaries, that do not directly contribute to production or sales.

Sales Organization

A sales organization is the structure of the team within a business that is responsible for selling the company’s products or services, including roles, policies, and strategies to achieve sales goals.