Which of the following is/are true regarding the Finished Goods Inventory account?
A)This account measures the total manufacturing cost of units completed but not yet sold.
B)The sale of manufactured goods to customers results in a transfer of their cost from the Finished Goods Inventory account to Cost of Goods Sold.
C)The journal entry for the sale of the inventory to a customer is a debit to Cost of Goods Sold and a credit to Finished Goods Inventory.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All the statements provided are true regarding the Finished Goods Inventory account. A) accurately describes the purpose of the account, B) explains the process of transferring costs upon sale, and C) details the correct journal entry for such a sale.

Which of the Following Is/are True Regarding the Finished Goods