Blair Company transferred the cost of units completed during the month to Finished Goods. The total cost was $1,100. How does this event affect the financial statements? $\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|l|}
\hline&{\text { Assets }} && = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline \begin{array}{l}
\text { WIP } \
\text { Inv. }
\end{array} & + & \begin{array}{c}
\text { Fin. } \
\text { Goods } \
\text { Inv. }
\end{array} & & & & & & & & & \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The transfer of costs from Work in Process Inventory to Finished Goods Inventory affects only the asset accounts, decreasing Work in Process Inventory and increasing Finished Goods Inventory by the same amount, with no impact on liabilities, equity, revenue, expenses, or net income.

Blair Company Transferred the Cost of Units Completed During the Month