Witty, Inc. uses a job-order cost system and had the following data available for 20X1.

-The journal entry to record the cost of goods completed would include a
A) debit to WIP Inventory for $256,000.
B) credit to Finished Goods Inventory for $292,000.
C) credit to Cost of Goods Sold for $256,000.
D) credit to WIP Inventory for $292,000.

Question

Witty, Inc. uses a job-order cost system and had the following data available for 20X1.
 
-The journal entry to record the cost of goods completed would include a
A) debit to WIP Inventory for $256,000. 
B) credit to Finished Goods Inventory for $292,000. 
C) credit to Cost of Goods Sold for $256,000. 
D) credit to WIP Inventory for $292,000.

Quizplus · Accepted Answer

The cost of goods completed is transferred from Work in Process (WIP) Inventory to Finished Goods Inventory, so WIP Inventory is credited.