When products are completed, which of the following accounts is increased?

Question

Quizplus · Accepted Answer

When products are completed, they are moved from the Work in Process Inventory account to the Finished Goods Inventory account, thus increasing the Finished Goods Inventory account. The Raw Materials Inventory account is decreased as raw materials are used in production, and the Work in Process Inventory account is decreased as products are completed. The Cost of Goods Sold account is not affected until the products are sold. Therefore, the best choice is C, Finished Goods Inventory.

When Products Are Completed, Which of the Following Accounts Is