The entry to record the completion of a job in a job-order costing system would cause:
A) An increase to the Cost of Goods Manufactured account.
B) An increase in net income.
C) An increase to the Cost of Goods Sold account.
D) A decrease to the Work in Process Inventory account.

Question

Quizplus · Accepted Answer

The completion of a job in a job-order costing system results in the transfer of costs from Work in Process Inventory to Finished Goods Inventory. This transfer is recorded by debiting Finished Goods Inventory and crediting Work in Process Inventory.

The Entry to Record the Completion of a Job in a Job-Order