In a manufacturing company, the costs debited to the Work in Process Inventory account represent:

Question

Quizplus · Accepted Answer

The Work in Process Inventory account represents the costs of goods that are in the process of being manufactured. These costs include direct materials used in production, direct labor, and manufacturing overhead. Therefore, option A is the correct choice. Option B is incorrect because the costs of finished goods manufactured are debited to the Finished Goods Inventory account. Option C is incorrect because period costs are not included in the Work in Process Inventory account, and product costs include direct materials used in production, direct labor, and manufacturing overhead, which are already indicated in option A. Option D is incorrect because the type of products being manufactured does not affect the costs of goods in process.

In a Manufacturing Company, the Costs Debited to the Work