Transfers out of the Work-in-Process account represent increases to the Cost of Goods Sold account.

Name: Transfers out of the Work-in-Process account represent increases to the Cost of Goods Sold account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Transfers out of the Work-in-Process account typically represent goods that have been completed and are moved to the Finished Goods Inventory, not directly to Cost of Goods Sold. Cost of Goods Sold increases when items are sold from the Finished Goods Inventory.

Transfers Out of the Work-In-Process Account Represent Increases to the Cost