The Final Step in Recognizing the Completion of Production Requires

question 87

Multiple Choice

The final step in recognizing the completion of production requires a company to:

• A) debit Finished-Goods Inventory and credit Work-in-Process Inventory.
• B) debit Work-in-Process Inventory and credit Finished-Goods Inventory.
• C) add direct labor to Work-in-Process Inventory.
• D) add direct materials, direct labor, and manufacturing overhead to Work-in-Process Inventory.
• E) add direct materials to Finished-Goods Inventory.

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Definitions:

Calculate

Determine mathematically.

Percent Change

The extent to which a quantity has increased or decreased, expressed as a percentage.

Initial Value

The starting monetary or numerical value of an investment, account, or another financial instrument before any earnings or losses.

Reduction

The act of making something lesser in size, amount, or degree.