Finished Goods is debited when products are sold and credited when the products are transferred from Work-in-Process.

Name: Finished Goods is debited when products are sold and credited when the products are transferred from Work-in-Process.
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Quizplus · Accepted Answer

Finished Goods is credited when products are sold (to recognize the cost of goods sold) and debited when products are transferred from Work-in-Process (to recognize the addition of completed goods ready for sale).

Finished Goods Is Debited When Products Are Sold and Credited