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 labour to Work-in-Process Inventory.
D)add direct materials, direct labour, and manufacturing overhead to Work-in-Process Inventory.
E)add direct materials to Finished-Goods Inventory.

Question

Quizplus · Accepted Answer

The completion of production is recognized by transferring costs from Work-in-Process Inventory to Finished-Goods Inventory, which involves debiting Finished-Goods Inventory and crediting Work-in-Process Inventory.

The Final Step in Recognizing the Completion of Production Requires