products are standard commercial terms, i$.$e$.,$ you issue or receive a purchase order, which triggers an invoice, and the invoice is paid $30$ days later.

Step $1$: Order and receive $$1,200$ of steel from a supplier.

The account to credit is: inventory of raw materials

The account to debit is:

accounts payable

Step $2$: Pay the supplier $($typically $30$ days later$).$

The account to credit is:

accounts payable

The account to debit is:

Step $3$: Move the steel onto the shop floor, and start fabrication.

The account to credit is:

The account to debit is:

Step $4$: Incur $$600$ of shop labor costs in making the product.

The account to credit is:

cost of goods sold

The account to debit is:

$.$

Step $5$: Finish fabrication of an item with a cost of $$1,800$ of which the raw steel's cost is $$1,200$ and shop floor labor is $$600,$ and move it to finished product inventory.

The account to credit is:

$,$ by how much? $

The account to debit is:

by how much? $

$.$

Step $6$: Sell the product to a customer for $$3,600.$ Note that four entries, not two, are necessary for this step.

The asset account to credit is:

$,$ by how much? $

$.$

The asset account to debit is

$,$ by how much? $

Do you credit the cost of goods sold or the sales revenue?

$,$ by how much? $

Do you debit the cost of goods sold or sales revenue?

$,$ by how much? $

Step $7$: The customer pays $($typically $30$ days later$).$

The account to credit is:

The account to debit is:

options are Account recievable, accounts payable, raw inventory, cash, work in progress, inventory of finshed products, cost of goods sold, sales revenue