Costs incurred on goods sold are transferred to the Cost of Goods Sold account from the ________.

Question

Quizplus · Accepted Answer

Costs incurred on goods sold are transferred from the Finished Goods Inventory account to the Cost of Goods Sold account. The Work-in-Process Inventory account is used to track the costs of partially completed goods, and the Raw Materials Inventory account is used to track the costs of the materials used to produce the goods. The Sales Revenue account is where revenue from the sale of goods is recorded, but it is not related to the transfer of costs to the Cost of Goods Sold account.

Costs Incurred on Goods Sold Are Transferred to the Cost