The debits in work-in-process are beginning work-in-process, direct labor, direct materials, and factory overhead. The account should be credited for production that is completed and sent to finished goods in inventory. The balance is:

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Zero
B	Ending Work-in-process (credit)
C	Ending Work-in-process (debit)
D	Total production costs to be accounted for

Explanation:

Detailed explanation-1: -Work-In-Process Inventory includes all the direct materials, direct labor and manufacturing overhead costs that have been added to the manufacturing process but for which production has not been completed.

Detailed explanation-2: -Direct labor is debited to the Work In Process inventory account and indirect labor is debited to the Manufacturing Overhead account. Typically, a liability account such as Salaries Payable is credited.

Detailed explanation-3: -Answer and Explanation: True, when indirect materials are issued to production, they are debited to manufacturing overhead and the Raw Materials Inventory account is credited. Indirect materials are materials that are used in the production process but cannot be directly traced to a cost object.

Detailed explanation-4: -Answer: C) the Work in Process account. The manufacturing overhead account decreased while the work-in-process inventory account increased.

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