When a job is completed and all costs have been accumulated on a job cost sheet the journal entry that should be made is
A)Increase Finished Goods Inventory and decrease Raw Materials Inventory Factory Labor and Manufacturing Overhead.
B)Increase Work in Process Inventory and decrease Raw Materials Inventory Factory Labor and Manufacturing Overhead.
C)Increase Raw Materials Inventory and decrease Work in Process Inventory.
D)Increase Finished Goods Inventory and decrease Work in Process Inventory.

Question

Quizplus · Accepted Answer

Once a job is completed, it is transferred from the Work in Process Inventory to Finished Goods Inventory. Therefore, the entry should increase Finished Goods Inventory and decrease Work in Process Inventory. Raw Materials Inventory, Factory Labor, and Manufacturing Overhead have already been accumulated on the job cost sheet and are not affected by the completion of the job.

When a Job Is Completed and All Costs Have Been