Asked by Mercy’s World on Jun 10, 2024
Verified
The entries to record the cost and sale of a finished good on account is
A) debit Cost of Goods Sold, credit Finished Goods
B) debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales
C) debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable
D) debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit Sales
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.
Finished Goods
Goods that are finished with production and available for purchase.
Accounts Receivable
The money owed to a company by its customers for products or services that have been delivered but not yet paid for.
- Understand the process and journal entries for purchasing, requisitioning, and applying materials in production.
- Comprehend the flow of costs in a manufacturing process, including work in process, finished goods, and cost of goods sold.
Verified Answer
Learning Objectives
- Understand the process and journal entries for purchasing, requisitioning, and applying materials in production.
- Comprehend the flow of costs in a manufacturing process, including work in process, finished goods, and cost of goods sold.
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