In both job and process costing,the journal entry to record cost of goods sold is as follows.
A) Debit finished goods inventory and credit cost of goods sold.
B) Debit finished goods inventory and credit work in process.
C) Debit cost of goods sold and credit work in process.
D) Debit cost of goods sold and credit finished goods inventory.

Question

Quizplus · Accepted Answer

In both job and process costing, cost of goods sold represents the cost of finished goods that have been sold during the period. Therefore, the journal entry to record cost of goods sold is a decrease in finished goods inventory (debit) and an increase in cost of goods sold (credit). The correct option is D, which is Debit cost of goods sold and credit finished goods inventory.

In Both Job and Process Costing,the Journal Entry to Record