Which of the following statements regarding work in process is not correct?
A)Work in process is partially completed inventory.
B)Work in process consists of direct labor, direct material, and manufacturing overhead.
C)Work-in-Process Inventory is debited to record direct material used and direct labor
D)Work-in-Process Inventory appears on the year-end balance sheet.
E)Work-in-Process Inventory is credited when goods are sold.

Question

Quizplus · Accepted Answer

Work-in-Process Inventory is not credited when goods are sold. It is debited for the total cost of goods sold and credited for the cost of goods completed during the period. The cost of goods completed is then transferred to Finished Goods Inventory.

Which of the Following Statements Regarding Work in Process Is