Which one of the following journal entries in a standard cost system is needed to record the completion of production for the period?
A) A debit to Work-in-Process Inventory, at standard cost.
B) A debit to Work-in-Process Inventory, at actual cost.
C) A credit to Cost of Goods Sold, at standard cost.
D) A debit to Finished Goods Inventory, at standard cost.
E) A debit to Finished Goods Inventory, at actual cost.

Question

Quizplus · Accepted Answer

The completion of production for the period is recorded by transferring the cost of the completed goods from Work-in-Process Inventory to Finished Goods Inventory. Therefore, a debit to Finished Goods Inventory, at standard cost, is the appropriate journal entry to record the completion of production. Choice A is incorrect because it only records the cost incurred for the work in process, not the completion of production. Choice B is inappropriate since it records at actual rather than standard cost. Choice C is incorrect because it records the cost of goods sold, which occurs when the goods are sold, not when they are completed. Choice E is inappropriate, similar to B, since it records at actual cost, which does not reflect the standard cost system.

Which One of the Following Journal Entries in a Standard