Construction
Project Close-Out — WIP to Cost of Sales
Transferring all remaining WIP costs to Cost of Sales upon project completion and final revenue recognition.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cost of Construction (COGS) | Expense (+) | 3,500,000.00 | - |
| Work-in-Progress (WIP) | Asset (-) | - | 3,500,000.00 |
💡 Accountant's Note
At project completion, all accumulated WIP is flushed to Cost of Sales to match the final revenue recognition. This is the ultimate matching entry for a long-term construction contract.
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