earning Objective 03-P4: Record the transfer of goods across departments, to Finished Goods Inventory, and to Cost of Goods Sold.

As units are passed through processes, their accumulated costs are transferred across separate Work in Process Inventory accounts for each process. As units complete the final process and are eventually sold, their accumulated cost is transferred to Finished Goods Inventory and finally to Cost of Goods Sold.

Accounting for Transfers to Finished Goods and Cost of Goods Sold

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Knowledge Check 01 The journal entry to transfer completed products from production to finished goods inventory includes which two of the following? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

• Debit to Finished Goods Inventoryunanswered
• Credit to Work in Process Inventoryunanswered
• Credit to Finished Goods Inventoryunanswered
• Debit to Work in Process Inventoryunanswered
• Debit to Raw Materials Inventoryunanswered
• Credit to Raw Materials Inventoryunanswered