When goods are completed, the entry to record the transfer of the goods out of the last department includes a debit to Cost of Goods Sold.

Question

Quizplus · Accepted Answer

The entry to record the transfer of completed goods out of the last department typically includes a debit to Finished Goods Inventory, not Cost of Goods Sold. Cost of Goods Sold is recorded when the goods are sold to customers.

When Goods Are Completed, the Entry to Record the Transfer