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The journal entry to transfer completed products from production to finished goods inventory includes which two of the following?

a. Debit to Finished Goods Inventory
b. Credit to Work in Process Inventory
c. Credit to Finished Goods Inventory
d. Debit to Work in Process Inventory
e. Debit to Raw Materials Inventory
f. Credit to Raw Materials Inventory

2 Answers

2 votes

Final answer:

The correct journal entry includes a debit to Finished Goods Inventory and a credit to Work in Process Inventory, representing the value transfer of goods completed in production.

Step-by-step explanation:

The journal entry to transfer completed products from production to finished goods inventory typically includes a debit to Finished Goods Inventory (to increase the asset account since finished goods represent value to the company) and a credit to Work in Process Inventory (to reduce the asset account because the goods are no longer in process). Therefore, the correct choices are:

a. Debit to Finished Goods Inventory

b. Credit to Work in Process Inventory

No entries are made directly to the Raw Materials Inventory at this stage, as the materials would have already been allocated to Work in Process Inventory earlier in the production process. Hence, options c, d, e, and f are not relevant in this context.

User Daphshez
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3.6k points
3 votes

Answer:

c. Credit to Finished Goods Inventory

e. Debit to Raw Materials Inventory

Please remind me if one of them is correct or wrong or if both are wrong/correct

Step-by-step explanation:

User Maestromusica
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3.6k points