Manufacturing costs incurred for jobs completed during an accounting period can bypass the inventory accounts on the balance sheet and be recorded directly in expense accounts.

Question

Quizplus · Accepted Answer

Manufacturing costs for completed jobs are initially recorded in inventory accounts (such as Work in Process and Finished Goods) on the balance sheet and only expensed as Cost of Goods Sold when the goods are sold.

Manufacturing Costs Incurred for Jobs Completed During an Accounting Period