Which of the following is/are true regarding the Work-in-Process Inventory account?
A)The Work-in-Process Inventory account accumulates the cost of raw materials transferred to the factory floor.
B)The Work-in-Process Inventory account accumulates the cost of direct labor used in production.
C)The Work-in-Process Inventory account accumulates the manufacturing overhead costs.
D)The Work-in-Process Inventory account is credited for the manufacturing costs assigned to the finished units transferred to the finished goods storeroom.
E)all of the above

Question

Quizplus · Accepted Answer

The Work-in-Process Inventory account accumulates the cost of raw materials transferred to the factory floor (A), the cost of direct labor used in production (B), and the manufacturing overhead costs (C). It is then credited for the manufacturing costs assigned to the finished units transferred to the finished goods storeroom (D). Therefore, all of the above statements are true regarding the Work-in-Process Inventory account.

Which of the Following Is/are True Regarding the Work-In-Process Inventory