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 labor to Work-in-Process Inventory.

D. add direct materials, direct labor, and manufacturing overhead to Work-in-Process Inventory.

E. add direct materials to Finished-Goods Inventory.

Question

Business

Adelaide Patrick

21 March, 23:57

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 labor to Work-in-Process Inventory.

D. add direct materials, direct labor, and manufacturing overhead to Work-in-Process Inventory.

E. add direct materials to Finished-Goods Inventory.

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Answers (1)

Know the Answer?

Camden · Answer 1

A. debit Finished-Goods Inventory and credit Work-in-Process Inventory.

Explanation:

The work in progress cannot yet be debited because it cannot be sold while the finished goods represent cash.