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

Question

Quizplus · Accepted Answer

The cost of goods sold is the cost of the products or goods that have been sold during a particular period, and it is transferred from the Finished Goods Inventory account, which holds the cost of the goods that have been completed and are ready for sale. The Work-in-Process Inventory account holds the costs of the goods that are still in production, while the production cost report and sales price report are used to track other aspects of the production and sales process.

Costs Incurred on Goods Sold Are Transferred to the Cost