Which of the following statements regarding work in process is not correct?
A)Work-in-process is partially completed inventory.
B)Work-in-process consists of direct labour, direct material, and manufacturing overhead.
C)Work-in-Process Inventory is debited to record direct material used and direct labour incurred.
D)Work-in-Process Inventory appears on the year-end balance sheet.
E)Work-in-Process Inventory is credited when goods are sold.

Question

Quizplus · Accepted Answer

Work-in-Process Inventory is not credited when goods are sold. Instead, Cost of Goods Sold is debited and Work-in-Process Inventory is credited to transfer the cost of the completed goods from Work-in-Process Inventory to Finished Goods Inventory.

Which of the Following Statements Regarding Work in Process Is