The cost of production summary for Maha Industries follows: What is the journal entry to record completed production and transfer to the warehouse?
A)Work in process 13,125 Finished goods 13,125
B)Finished goods 1,875 Work in process 1,875
C)Finished goods 3,000 Factory overhead 3,000
D)Finished goods 13,125 Work in process 13,125

Question

The cost of production summary for Maha Industries follows:  What is the journal entry to record completed production and transfer to the warehouse?
A)Work in process 13,125 Finished goods 13,125 
B)Finished goods 1,875 Work in process 1,875 
C)Finished goods 3,000 Factory overhead 3,000 
D)Finished goods 13,125 Work in process 13,125

Quizplus · Accepted Answer

The completed production is transferred from Work in Process (WIP) to the Finished Goods account. Therefore, the journal entry should be:
Finished Goods 13,125
Work in Process 13,125

The Cost of Production Summary for Maha Industries Follows