If a company uses job order costing, the amount transferred from Work-in-Process Inventory to Finished Goods Inventory is equal to the cost of goods:

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The amount transferred from Work-in-Process Inventory to Finished Goods Inventory in a job order costing system is equal to the cost of goods completed during the period. This is because in job order costing, each job or product is treated as a separate entity with its own costs accumulated throughout the production process. Once the job is completed, the total cost is then transferred to the Finished Goods Inventory account. It is only when the goods are sold that their costs are recognized as Cost of Goods Sold.

If a Company Uses Job Order Costing, the Amount Transferred