When raw materials are transferred out of the storeroom to the factory,their cost is transferred out of raw materials inventory and into finished goods inventory.

Question

Quizplus · Accepted Answer

Raw materials are transferred from the storeroom to the factory into the work-in-progress inventory. The cost of raw materials is then included in the cost of goods manufactured (COGM), which is transferred from work-in-progress inventory to finished goods inventory.

When Raw Materials Are Transferred Out of the Storeroom to the Factory,their