When jobs are completed, the total cost of the job is recorded as a debit to Finished goods and a credit to Work in process.

Question

Quizplus · Accepted Answer

This statement is true because finished goods represent completed products that are ready to be sold, while work in process is the inventory of partially completed goods that are still being worked on. When a job is completed, the cost of the materials, labor, and overhead incurred during production is transferred from work in process to finished goods. This is done through a journal entry debiting finished goods and crediting work in process.

When Jobs Are Completed, the Total Cost of the Job