In a job-order costing system, the entry to record the completion of jobs would be recorded with a:
A) Debit to Finished Goods Inventory and a credit to Cost of goods sold
B) Debit to Finished Goods Inventory and credit to Work-in-Process Inventory
C) Debit to Work-in-Process Inventory and credit to Finished Goods Inventory
D) Debit to Cost of Goods Sold inventory and credit to Finished Goods Inventory

Question

Quizplus · Accepted Answer

When jobs are completed in a job-order costing system, the costs are transferred from Work-in-Process Inventory to Finished Goods Inventory. This is reflected by debiting Finished Goods Inventory and crediting Work-in-Process Inventory.

In a Job-Order Costing System, the Entry to Record the Completion