In both job and process costing, the journal entry to record cost of goods sold is.
A) debit finished goods inventory and credit cost of goods sold.
B) debit finished goods inventory and credit work in process.
C) debit cost of goods sold and credit work in process.
D) debit cost of goods sold and credit finished goods inventory.

Question

Quizplus · Accepted Answer

In both job and process costing, the cost of goods sold is transferred from finished goods inventory to the cost of goods sold account. Therefore, the journal entry to record cost of goods sold is to debit the cost of goods sold account and credit finished goods inventory.

In Both Job and Process Costing, the Journal Entry to Record