The final step in recognizing the completion of production requires a company to:
A) debit Finished-Goods Inventory and credit Work-in-Process Inventory.
B) debit Work-in-Process Inventory and credit Finished-Goods Inventory.
C) add direct labor to Work-in-Process Inventory.
D) add direct materials, direct labor, and manufacturing overhead to Work-in-Process Inventory.
E) add direct materials to Finished-Goods Inventory.

Question

Quizplus · Accepted Answer

The final step in recognizing the completion of production involves transferring the cost of the completed goods from Work-in-Process Inventory to Finished-Goods Inventory. This is done by debiting Finished-Goods Inventory (to increase it) and crediting Work-in-Process Inventory (to decrease it), reflecting the movement of goods from being in process to being finished.

The Final Step in Recognizing the Completion of Production Requires