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### Horngren'S Financial And Managerial Accounting

Book edition 6th
Author(s) Tracie L. Miller-Nobles, Brenda L. Mattison
Pages 992 pages
ISBN 9780134486833

# Question: Department 4 has completed production on units that have a total cost of $15,000. The units are ready for sale. Give the journal entry. Answer  Date Particulars Debit ($) Credit (\$) Finished goods inventory 15,000 WIP inventory 15,000
See the step by step solution

## Step 1: WIP inventory

The work in process inventory means the inventory which are under processing and are partially completed. It is the inventory which is currently in the production process at the end of the accounting period.

## Step 2: Recording of the total cost when the production is completed

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