In the T-account cost flow diagram of balance sheet inventory accounts and the income statement cost of goods sold account:
A)raw materials purchases are debited to work in process.
B)direct labor costs are credited to work in process.
C)cost of goods manufactured is debited to finished goods inventory.
D)cost of goods sold is debited to finished goods inventory.

Question

Quizplus · Accepted Answer

The cost of goods manufactured is transferred from work in process to finished goods inventory, so it is debited to finished goods inventory.

In the T-Account Cost Flow Diagram of Balance Sheet Inventory