Which of the following is not 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 accumulates the administrative costs.
E)The Work-in-Process Inventory account is credited for the manufacturing costs assigned to the finished units transferred to the finished goods storeroom.

Question

Quizplus · Accepted Answer

The Work-in-Process Inventory account does not accumulate administrative costs. Administrative costs are part of the period costs and are expensed in the period they are incurred. The Work-in-Process Inventory account only accumulates the manufacturing costs incurred in the production process.

Which of the Following Is Not True Regarding the Work-In-Process