A journal entry to transfer costs from the Work in Process account to Finished Goods Inventory account will include a debit to Finished Goods Inventory.

Question

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When transferring costs from the Work in Process account to the Finished Goods Inventory account, the Finished Goods Inventory account is debited and the Work in Process account is credited. This reflects the movement of costs from work in progress to finished goods.

A Journal Entry to Transfer Costs from the Work in Process