As production takes place, the product costs are added to the
A) raw materials inventory account.
B) work in process inventory account.
C) finished goods inventory account.
D) cost of goods sold account.

Question

Quizplus · Accepted Answer

As production takes place, the product costs are added to the work in process (WIP) inventory account. This account represents the costs associated with the products as they move from raw materials inventory to finished goods inventory. Once the products are completed, the costs are then transferred to the finished goods inventory account. When the products are sold, the costs are then transferred to the cost of goods sold account.

As Production Takes Place, the Product Costs Are Added to the