Under a perpetual inventory system, the journal entry needed to record the sale of a job includes a

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Under perpetual inventory system, the finished goods inventory account is continually updated with the cost of goods manufactured. Therefore, when a job is sold, the cost is transferred from finished goods inventory account to cost of goods sold account. Hence, the journal entry would be a debit to cost of goods sold account and a credit to finished goods inventory account.

Under a Perpetual Inventory System, the Journal Entry Needed to Record