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. This is because it is a credit entry to the Work in Process account and a debit entry to the Finished Goods account, indicating that the cost of goods manufactured has been completed and transferred to the next stage of production. Option A, B, and D are incorrect as they do not match with the given entry.

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