Productions costs are transferred from one Work-in-Process Inventory account to the next and eventually to ________.
A) Manufacturing Overhead
B) Sales Revenue
C) Finished Goods Inventory
D) Accounts Payable

Question

Quizplus · Accepted Answer

Production costs are first accumulated in the Work-in-Process Inventory account, and then transferred to the next stage of production until the product is completed. Once the production is complete, the costs are transferred from the final Work-in-Process Inventory account to the Finished Goods Inventory account. Therefore, the correct option is C - Finished Goods Inventory.

Productions Costs Are Transferred from One Work-In-Process Inventory Account to the Next