Phoenix company completes job no. 25 at a cost of rm4,500 and later sells it for rm10,000 cash, then there is the Increase in Finished Goods Inventory RM4,500 and decrease in Work in Process Inventory RM4,500.
What are finished goods?
Finished goods are defined as those commodities that are ready to sell into the market, means that there are no remaining process to complete the product. This also includes all the costs that are incurred to make that product.
Job No. 25 is completed for RM4,500 and later sold for RM10,000 cash, resulting in an increase in Finished Goods Inventory of RM4,500 and a drop in Work in Process Inventory of RM4,500.
Therefore, the finished goods are those goods that are ready to sell in the market.
Learn more about the goods, refer to: