The cost transferred to Cost of Goods Sold is equal to the total manufacturing costs incurred for the units sold.

Question

Quizplus · Accepted Answer

This statement is true as the cost of goods sold (COGS) includes all the costs associated with producing and selling a product, including direct materials, direct labor, and manufacturing overhead. Therefore, the total manufacturing costs incurred for the units sold are transferred to the COGS account.

The Cost Transferred to Cost of Goods Sold Is Equal