Question

The journal entry to record the completion of a job in a job costing system is: A. Work-In-Process Inventory xxx Materials Inventory xxx B. Materials Inventory xxx Purchases xxx C. Cost of Goods Sold xxx Finished Goods Inventory xxx D. Finished Goods Inventory xxx Work-In-Process Inventory xxx

Answer 1

Answer:D. Finished Goods Inventory xxx Work-In-Process Inventory xxx

Step-by-step explanation:

Whenever job is finished , a business inventory always increases This increases the asset account and should be recorded as debit in the accounting entry as Finished goods inventory , while the work in progress inventory is credited as it decreases the expense account because inventory would start to be spent when job is completed .

Inventory is an asset to every job costing business system, According to the debit and credit rule of accounting entry, debit any account that increases asset and credit any account that decreases asset.

Therefore, we have

Account titles Debit Credit

Finished Goods Inventory xxx

Work-In-Process Inventory xxx