Work-in-Process Inventory is credited when:

Question

Quizplus · Accepted Answer

Work-in-Process Inventory is credited when manufactured goods are completed, meaning they have finished production and are ready to move to the next stage of the manufacturing process or be sold. The credit to Work-in-Process Inventory reflects the transfer of the cost of production from this inventory account to the Finished Goods Inventory account. Option A is incorrect because the credit to Work-in-Process Inventory happens when goods are completed, not sold. Option C is incorrect because the use of raw materials in production would result in a debit to Work-in-Process Inventory. Option D is incorrect because closing entries do not involve crediting Work-in-Process Inventory.

Work-In-Process Inventory Is Credited When