In job-order costing,the journal entry to record the transfer of completed goods from the production area would include a Credit to ________.
A) Cost of Goods Sold
B) Finished Goods Inventory
C) Factory Department Overhead Control
D) Work-In-Process Inventory

Question

Quizplus · Accepted Answer

The correct answer is D) Work-In-Process Inventory. When goods are completed in a job-order costing system, they are transferred out of Work-In-Process Inventory and into Finished Goods Inventory. This transfer is recorded by crediting Work-In-Process Inventory, as it reduces the balance in that account, reflecting the movement of costs from work in process to finished goods.

In Job-Order Costing,the Journal Entry to Record the Transfer of Completed