Which of the following statements regarding work in process is not correct?
A) Work in process is partially completed inventory.
B) Work in process consists of direct labor, direct material, and manufacturing overhead.
C) Work-in-Process Inventory is debited to record direct material used and direct labor incurred.
D) Work-in-Process Inventory appears on the year-end balance sheet.
E) Work-in-Process Inventory is credited when goods are sold.

Question

Quizplus · Accepted Answer

Work-in-Process Inventory is credited when goods are completed and transferred out of work-in-process, not when they are sold. Goods are recorded as finished goods inventory once completed, and only upon sale is the finished goods inventory credited.

Which of the Following Statements Regarding Work in Process Is