When a job is completed and transferred to the finished goods warehouse the journal entry to record this is debit Cost of Goods Sold and credit Work in Process Inventory.

Question

Quizplus · Accepted Answer

The journal entry to record the completion and transfer of a job from work in process inventory to finished goods inventory is debit Finished Goods Inventory and credit Work in Process Inventory. There is no debit to Cost of Goods Sold until the goods are sold to a customer.

When a Job Is Completed and Transferred to the Finished