All manufacturing costs that are assigned to completed (but unsold) products should be classified as
A) materials inventory costs.
B) overhead costs.
C) work in process inventory costs.
D) finished goods inventory costs.

Question

Quizplus · Accepted Answer

All manufacturing costs that are assigned to completed products should be classified as finished goods inventory costs, as the products are ready to be sold and will be classified as inventory until they are sold. Materials inventory costs are for raw materials that have not yet been used in production, work in process inventory costs are for products that are still being produced and not yet completed, and overhead costs are indirect costs related to production but do not directly impact specific products.

All Manufacturing Costs That Are Assigned to Completed (But Unsold)