In perpetual inventory system with process costing,the cost of units sold is recorded by debiting Cost of Goods Sold and crediting ________.
A) Finished Goods Inventory
B) Sales Revenue
C) Work-in-Process Inventory
D) Wages Payable

Question

Quizplus · Accepted Answer

In process costing, the cost of goods sold is recorded by debiting the Cost of Goods Sold account and crediting Finished Goods Inventory account. This is because the units which are sold have completed their production process and are transferred from Finished Goods Inventory to Cost of Goods Sold.

In Perpetual Inventory System with Process Costing,the Cost of Units