The journal entry to record the ultimate completion of the units would include a credit to the WIP inventory account of the last sequential production department.

Question

Quizplus · Accepted Answer

This is because when the units are completed, they are transferred out of the last production department's WIP inventory account and into finished goods inventory or transferred to the next department. Therefore, the journal entry would require a credit to the WIP inventory account of the last sequential production department.

The Journal Entry to Record the Ultimate Completion of the Units