Choose the best answer A credit to Work in Process Inventory represents Group of answer choices raw material put into production. work still in process. the transfer of completed items to Finished Goods Inventory. the application of overhead to production.
Question
Choose the best answer A credit to Work in Process Inventory represents Group of answer choices
raw material put into production.
work still in process.
the transfer of completed items to Finished Goods Inventory.
the application of overhead to production.
Solution
The best answer is "the transfer of completed items to Finished Goods Inventory."
Here's why:
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"Raw material put into production" is typically represented as a debit to Work in Process Inventory, not a credit.
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"Work still in process" is what the Work in Process Inventory account is used to track, but it doesn't specifically represent a credit to this account.
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"The transfer of completed items to Finished Goods Inventory" is represented as a credit to Work in Process Inventory because once the goods are completed, they are transferred out of work in process and into finished goods.
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"The application of overhead to production" is also typically represented as a debit to Work in Process Inventory, not a credit.
So, the best answer is "the transfer of completed items to Finished Goods Inventory."
Similar Questions
Amounts credited to the Work in Process inventory account may best be described as:Multiple ChoiceThe cost of finished goods manufactured.Total manufacturing costs charged to production.The cost of goods sold.Direct materials purchased, direct labor costs paid, and payments for items classified as manufacturing overhead.
The inventory account used for the costs of items that are in production and being manufactured is known as:Multiple choice question.Work in process inventoryCost of goods manufacturedRaw materials inventoryFinished goods inventory
The recording of direct labor will result in a:Multiple choice question.debit to Work in Process Inventory and credit Factory Wages Payabledebit to Factory Overhead and a credit Work in Process Inventorydebit to Work in Process Inventory and a credit Factory Overheaddebit to Factory Wages Payable and a credit to Work in Process Inventory
The journal entry to record the allocation of factory overhead to work in process is:Multiple choice question.debit Work in Process Inventory and credit Cashdebit Cash and credit Factory Overheaddebit Work in Process Inventory and credit Factory Overheaddebit Factory Overhead and credit Work in Process Inventory
The inventory account applicable to product ingredients ready for the production process is known as:Multiple choice question.Raw materials inventoryManufacturing overheadWork in process inventoryFinished goods inventory
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