Question

The final step in recognizing the completion of production requires a company to:

A. debit Finished-Goods Inventory and credit Work-in-Process Inventory.
B. debit Work-in-Process Inventory and credit Finished-Goods Inventory.
C. add direct labor to Work-in-Process Inventory.
D. add direct materials, direct labor, and manufacturing overhead to Work-in-Process Inventory.
E. add direct materials to Finished-Goods Inventory.

Answer 1

A. debit Finished-Goods Inventory and credit Work-in-Process Inventory.

Step-by-step explanation:

The work in progress cannot yet be debited because it cannot be sold while the finished goods represent cash.