Assume a company uses process costing.When factory overhead is applied to the units in production,Finished Goods Inventory is the Debit part of the journal entry.

Question

Quizplus · Accepted Answer

When factory overhead is applied to units in production, it is the Work in Process Inventory that is debited, not the Finished Goods Inventory. Finished Goods Inventory is debited when goods are completed and transferred out of Work in Process.

Assume a Company Uses Process Costing