As units are completed,their costs are transferred from the Materials Inventory account to the Finished Goods Inventory account.

Question

Quizplus · Accepted Answer

As units are completed, their costs are transferred from the Work in Process Inventory account to the Finished Goods Inventory account, not directly from Materials Inventory. Materials Inventory is debited when materials are initially purchased and then transferred to Work in Process as they are used in production.

As Units Are Completed,their Costs Are Transferred from the Materials