Finished Goods Inventory is credited when products are sold and debited when the products are transferred from Work-in-Process Inventory.

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When products are sold, Finished Goods Inventory is credited to decrease the inventory account. When products are transferred from Work-in-Process Inventory to Finished Goods Inventory, the Finished Goods Inventory is debited to increase the inventory account.

Finished Goods Inventory Is Credited When Products Are Sold and Debited