Question

When products are completed:

Multiple Choice:
1. Finished Goods Inventory is credited.
2. Work in Process Inventory is credited.
3. Cost of Goods Sold is debited.
4. Work in Process Inventory is debited.

Answer 1

2. Work in Process Inventory is credited.

Step-by-step explanation:

The journal entry is shown below:

Finished goods inventory A/c Dr. XXXXX

To Work in process inventory A/c XXXXX

(Being the completed products is recorded)

While recording this transaction, we debited the finished goods inventory account and credited the work in the process inventory account so that the proper posting could be done.