As soon as products are completed, their product costs are transferred from Raw Materials Inventory to Finished-Goods Inventory.

Question

Quizplus · Accepted Answer

When products are completed, their product costs are transferred from Work-in-Process Inventory to Finished-Goods Inventory, not directly from Raw Materials Inventory. Raw materials first move to Work-in-Process Inventory as they are used in production.

As Soon as Products Are Completed, Their Product Costs Are