Which method of costing is used to record all manufacturing costs directly in Cost of Goods Sold,and if any inventories occur at the end of the accounting period,the appropriate costs are transferred back to the inventory accounts?

Question

Quizplus · Accepted Answer

Backflush costing is the only method among the options that records all manufacturing costs directly in Cost of Goods Sold and transfers the appropriate costs back to inventory accounts only if inventories still exist at the end of the accounting period. This method is commonly used in just-in-time (JIT) environments where there is minimal inventory on hand. Put-back costing, traditional costing, and reverse costing do not fit the description given.

Which Method of Costing Is Used to Record All Manufacturing