The goods receipt step in production involves which of the following GL entries?
A)Finished goods inventory account is debited.
B)The manufacturing output settlement account is credited.
C)Finished goods inventory account is credited.
D)The COGS account is debited.
E)The GR/IR account is credited.

Question

Quizplus · Accepted Answer

A) When goods are received from production, the finished goods inventory account is debited to reflect the increase in inventory. B) The manufacturing output settlement account is credited to balance the entry, reflecting the completion of production and the transfer of costs from production to inventory.

The Goods Receipt Step in Production Involves Which of the Following