Which of the following statements is not correct regarding work in process?
A) Work in process is partially completed inventory.
B) Work in process consists of direct labour, direct material and allocated manufacturing overhead.
C) Work in process is debited as product costs are incurred.
D) Work in process is credited when goods are sold.

Question

Quizplus · Accepted Answer

Work in process is not credited when goods are sold, but rather debited to finished goods and then credited to cost of goods sold when sold.

Which of the Following Statements Is Not Correct Regarding Work