Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Question

Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:  The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Quizplus · Accepted Answer

The transfer of completed goods from Work in Process to Finished Goods is recorded by debiting Finished Goods Inventory and crediting Work in Process Inventory for the cost of the completed goods. Choice C shows a journal entry that debits Finished Goods Inventory for $755,500 and credits Work in Process Inventory for $755,500, which represents the total cost of the completed goods transferred.

Verrett Corporation Is a Manufacturer That Uses Job-Order Costing