The journal entry to record finished product units would include a debit to:
A)Work-in-Process Inventory.
B)Accrued Payroll.
C)Factory Overhead.
D)Materials Inventory.
E)Finished Goods Inventory.

Question

Quizplus · Accepted Answer

Finished product units are recorded as an increase in Finished Goods Inventory, as they are ready to be sold and become a part of the company's inventory. There is no debit to Work-in-Process Inventory, Accrued Payroll, Factory Overhead, or Materials Inventory when finished product units are completed.

The Journal Entry to Record Finished Product Units Would Include