Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts?
A) Raw Materials Inventory
B) Factory Labor
C) Manufacturing Overhead
D) Cost of Goods Sold

Question

Quizplus · Accepted Answer

Debits to Work in Process Inventory represent the cost of production and should be offset by credits to Raw Materials Inventory, Factory Labor, and Manufacturing Overhead. Cost of Goods Sold is not affected until the finished product is sold, so it should not be credited at this point. Therefore, the correct answer is D.

Debits to Work in Process Inventory Are Accompanied by a Credit