The amount of cost of goods manufactured is transferred from the Work in Process Inventory account to the Finished Goods Inventory account.

Question

Quizplus · Accepted Answer

This statement is true. The cost of goods manufactured is the total cost of producing finished goods during a specific period, including direct materials, direct labor, and manufacturing overhead. Once the goods are completed, the cost of goods manufactured is transferred from the Work in Process Inventory account to the Finished Goods Inventory account, where it is held until the goods are sold.

The Amount of Cost of Goods Manufactured Is Transferred from the Work