Which of the following accounts includes the cost of completed but unsold units of a manufacturing firm?
A)Cost of Goods Sold
B)Finished Goods Inventory
C)Work in Process Inventory
D)Materials Inventory

Question

Quizplus · Accepted Answer

Finished Goods Inventory includes the cost of completed but unsold units of a manufacturing firm. Cost of Goods Sold accounts for the cost of goods that have been sold to customers. Work in Process Inventory accounts for the cost of partially completed units that are still in the manufacturing process. Materials Inventory accounts for the cost of raw materials and supplies that have not yet been used in production.

Which of the Following Accounts Includes the Cost of Completed