Where is the ending work-in-process inventory deducted?
A)on the balance sheet
B)on the statement of cost of goods manufactured
C)on the income statement
D)on the statement of cash flows

Question

Quizplus · Accepted Answer

The ending work-in-process inventory is deducted on the statement of cost of goods manufactured, which shows the cost of goods produced during the period. The balance sheet shows the ending balance of inventory, but it does not reflect the deductions related to the production process. The income statement shows the revenues and expenses, but does not reflect the inventory changes. The statement of cash flows shows the cash inflows and outflows, but does not reflect the non-cash transactions related to inventory.

Where Is the Ending Work-In-Process Inventory Deducted