Question

When units are completed, the cost associated with the job is debited to which account?

a)Finished goods inventory
b)Raw materials inventory
c)Work in process inventory
d)Cost of goods sold

Answer 1

Completed units' associated costs are moved from the Work in process inventory to the Finished goods inventory account in manufacturing.

Step-by-step explanation:

When units are completed in a manufacturing process, the associated costs are moved from the Work in process inventory to the Finished goods inventory account. This accounting practice is part of inventory management and product cost assignment in cost accounting. Essentially, as goods are completed, their cost is no longer part of the ongoing production costs (Work in process inventory) but is now part of the products that are ready for sale (Finished goods inventory).