The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. a. Record the transfer of costs from work in process to finished goods. b. Record the cost of goods sold.

Question

Gabrielle

Business

23 July, 18:32

The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. a. Record the transfer of costs from work in process to finished goods. b. Record the cost of goods sold.

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Tate Eaton · Answer 1

Finished Goods Inventory 450,000 debit

Work In Process Inventory 450,000 credit

--to record transfer from work-in-process to finished goods--

Cost of Goods Sold 357,000 debit

Finished Goods Inventory 357,000 credit

--to record the cost of goods from sales--

Explanation:

The finished good will be the destination from the WIP inventory which, is the origin of the goods

Then, we record the cost of good as usual

we debit the expense and credit the inventory account.