24E-g - Horngren'S Financial And Managerial Accounting

Question

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.

g. Completed production on jobs with costs of $40,000

Step-by-Step Solution

Answer

Date	Particulars	Debit ($)	Credit ($)
	Finished goods inventory	40,000
	Work in process inventory		40,000

Step-by-Step Solution: Step 1: Finished goods

Finished goods inventory means the inventory which are ready for sale by the company. It is recorded as the current assets of the company.

Step 2: Recording of completed production on job in the books of the company

When the production is completed, the work in process inventory is transferred to the finished goods inventory by debiting the finished goods and by crediting the work in process account.