The journal entry to record the completion of goods includes:
A)a debit to Conversion Costs.
B)a debit to Work in Process Inventory.
C)a debit to Finished Goods Inventory.
D)a debit to Cost of Goods Sold.

Question

Quizplus · Accepted Answer

The completion of goods means that the products have been finished and are ready for sale. Therefore, the journal entry should include a debit to Finished Goods Inventory, which represents the cost of the products ready for sale. There is no need to debit Conversion Costs or Work in Process Inventory as these accounts have already been debited during the production process. Cost of Goods Sold will be debited when the products are actually sold.

The Journal Entry to Record the Completion of Goods Includes