When goods are completed and transferred from the assembly line:
A)Cost of Goods Sold is debited and Finished Goods Inventory is credited.
B)Work in Process Inventory is debited and Finished Goods Inventory is credited.
C)Finished Goods Inventory is debited and Cost of Goods Sold is credited.
D)Work in Process Inventory is credited and Finished Goods Inventory is debited.

Question

Quizplus · Accepted Answer

When goods are completed and transferred from the assembly line, the cost associated with their production is moved from Work in Process Inventory to Finished Goods Inventory. This is reflected by crediting Work in Process Inventory (to decrease it) and debiting Finished Goods Inventory (to increase it).

When Goods Are Completed and Transferred from the Assembly Line