The combined production costs from all departments for completed products are transferred to the Cost of Goods Sold account immediately after the completion of all production processes.

Question

Quizplus · Accepted Answer

The combined production costs from all departments for completed products are first transferred to the Finished Goods Inventory account upon completion. Costs are only moved to the Cost of Goods Sold account when the finished products are actually sold.

The Combined Production Costs from All Departments for Completed Products