The journal entry that accounts for the $300,000 transferred out of Work in Process account includes a debit of $300,000 to:
A)Finished Goods.
B)Cost of Goods Sold.
C)Accounts Receivable.
D)Sales.

Question

Quizplus · Accepted Answer

When goods are completed in the manufacturing process, the cost is transferred out of Work in Process (WIP) and into Finished Goods. This is done by debiting Finished Goods and crediting Work in Process.

The Journal Entry That Accounts for the $300,000 Transferred Out