Match the inventory-related accounts to costs that may be included in inventories for retailers and manufacturers.
-Costs of direct materials, overhead, and direct labor used in goods that have been sold.
A)Merchandise Inventory
B)Raw Materials
C)Work in Process
D)Finished Goods
E)Cost of Goods Sold

Question

Quizplus · Accepted Answer

Cost of Goods Sold reflects the costs of direct materials, overhead, and direct labor used in goods that have been sold, and is a component of the income statement. Merchandise Inventory, Raw Materials, Work in Process, and Finished Goods are balance sheet accounts that represent the cost of inventory that has not yet been sold.

Match the Inventory-Related Accounts to Costs That May Be Included