As soon as products are completed, their costs are transferred from the Work-in-Process Inventory account to the:
A)Finished-Goods Inventory account.
B)Manufacturing-Overhead Inventory account.
C)Cost-of-Goods-Sold account.
D)Raw Materials Inventory account.
E)Production Labour account.

Question

Quizplus · Accepted Answer

When products are completed, their costs are transferred from the Work-in-Process Inventory account to the Finished-Goods Inventory account. This reflects that the goods are now ready for sale and have been completed through the manufacturing process. The Manufacturing-Overhead Inventory account is used to accumulate indirect costs that are not directly traced to specific products or jobs. The Cost-of-Goods-Sold account is used to record the cost of goods that have been sold during a particular period. The Raw Materials Inventory account is used to record the cost of raw materials that have been purchased but have not yet been used in production. The Production Labour account is used to record the cost of direct labor used to produce goods.

As Soon as Products Are Completed, Their Costs Are Transferred