Question

When $45,000 of goods are completed in Production Department D and transferred to the finished-goods warehouse where completed products are stored, awaiting sale, the journal entry will include which of the following? Select one: a. A debit to Cost of Goods Sold b. A credit to Finished-Goods Inventory c. A debit to Finished-Goods Inventory d. A debit to Work-in-Process Inventory—Production Department D

Answer 1

Answer:

A debit to Finished-Goods Inventory

Explanation:

While recording this transaction, the journal entry is as follows

Finished goods inventory $45,000

      To work in process inventory $45,000

(Being the completed units are recorded)

For recording this, we debited the finished goods inventory and credited the work in process inventory so that the correct posting could be done and the same is shown above