The sum of all amounts transferred from the Work in Process account and into the Finished Goods account represents the Cost of Goods Manufactured for the period.

Question

Quizplus · Accepted Answer

The Cost of Goods Manufactured for a period includes all of the manufacturing costs associated with the goods produced during that period, including direct materials, direct labor, and manufacturing overhead. The Work in Process account represents the cost of goods that are in the process of being manufactured, while the Finished Goods account represents the cost of goods that have been completed and are ready for sale. Therefore, the sum of all amounts transferred from the Work in Process account and into the Finished Goods account represents the total cost of goods manufactured for the period.

The Sum of All Amounts Transferred from the Work in Process