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All of the following items are debited to Work-in-Process EXCEPT:

A) allocated manufacturing overhead
B) completed goods being transferred out of the plant
C) direct labor consumed
D) direct materials consumed

1 Answer

4 votes

Final answer:

The item that is NOT debited to Work-in-Process is 'completed goods being transferred out of the plant,' as this transaction is recorded as a credit to Work-in-Process and a debit to Finished Goods Inventory.

Step-by-step explanation:

The student's question pertains to the Work-in-Process (WIP) account in cost accounting, specifically which items are debited and which are not. In the context of accounting for manufacturing costs, the Work-in-Process account reflects the ongoing costs associated with goods that are not yet completed. Typically, direct materials consumed, direct labor consumed, and allocated manufacturing overhead are indeed debited to the Work-in-Process account as they are inputs and resources such as labor, materials, and machinery used in the production process.

However, when goods are completed and transferred out of the production plant to the finished goods inventory, this activity is represented by a credit to the Work-in-Process account and a corresponding debit to the Finished Goods Inventory account. Consequently, completed goods being transferred out of the plant is the item that would NOT be debited to Work-in-Process.

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