A debit to Finished- Goods-Inventory will normally be offset by a credit to cost of goods sold.

Name: A debit to Finished- Goods-Inventory will normally be offset by a credit to cost of goods sold.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A debit to Finished Goods Inventory is typically offset by a credit to Work-in-Process Inventory, reflecting the transfer of costs from work in process to finished goods. The Cost of Goods Sold is credited when the finished goods are sold, not when they are produced.

A Debit to Finished- Goods-Inventory Will Normally Be Offset by a Credit