Final answer:
Revenue can be recognized at the completion of production for precious metals due to their readily determinable market value and their interchangeability, which allows their value to be easily ascertained without a sales transaction.
Step-by-step explanation:
For which of the following products is it appropriate to recognize revenue at the completion of production even though no sale has been made? The answer is d. Precious metals. Unlike automobiles, large appliances, or single family residential units, precious metals are unique among these options because, as commodities, they have a readily determinable market value upon completion of production, and they are often sold through a commodities exchange where the price is universally recognized. Revenue recognition at the completion of production for precious metals is acceptable because these goods are interchangeable and can be quickly sold in the open market, making their fair value easy to ascertain. In contrast, products such as automobiles, large appliances, and residential units typically require a sales transaction to occur before revenue can be recognized because their value can vary significantly based on a variety of factors that are unique to each individual sale.