Refer to the T-account below: Entry (12) could represent which of the following?
A) Direct labor cost incurred in production.
B) Purchases of raw materials.
C) The cost of goods manufactured transferred to Finished Goods.
D) The cost of indirect materials incurred in production.

Question

Refer to the T-account below:  Entry (12) could represent which of the following?
A) Direct labor cost incurred in production. 
B) Purchases of raw materials. 
C) The cost of goods manufactured transferred to Finished Goods. 
D) The cost of indirect materials incurred in production.

Quizplus · Accepted Answer

Entry (12) represents the cost of goods manufactured transferred to Finished Goods, as this is the point at which the costs of producing a product are moved from the Manufacturing Overhead and Work in Process accounts to the Finished Goods account. Direct labor cost incurred in production and purchases of raw materials would be recorded in the Work in Process account, and the cost of indirect materials incurred in production would be recorded in the Manufacturing Overhead account.

Refer to the T-Account Below: Entry (12) Could Represent