In a job order costing system, a credit to Finished Goods Inventory will be accompanied by a debit to A. WorkminusinminusProcess Inventory B. Sales Revenue C. Accounts Receivable D. Cost of Goods Sold
What a credit to finished goods inventory actually means is that there was an increase in the number of finished goods. If finished goods increased, it means that the number of goods still being worked on (Work-in-process inventory) has decreased (debit). Thus, this transaction must be accompanied by a debit to Work-in-Process Inventory.
