Asked by Andrew Grasso on Jun 10, 2024
Verified
When finished goods are sold the entry to record the cost of goods sold is a debit to Finished Goods Inventory and a credit to Cost of Goods Sold.
Finished Goods Inventory
Goods that are finished with their production cycle and available for purchase by consumers.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including materials and labor.
- Understand the method by which costs are accumulated and allocated within a process costing system.
Verified Answer
JH
Jinan HoujeijJun 14, 2024
Final Answer :
False
Explanation :
The correct entry to record the cost of goods sold is a debit to Cost of Goods Sold and a credit to Finished Goods Inventory.
Learning Objectives
- Understand the method by which costs are accumulated and allocated within a process costing system.
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