Which of the following statements is incorrect for a manufacturing entity?
A)Inventory is transferred from work in process to finished goods.
B)Raw materials used are transferred to work in process.
C)Finished goods inventory eventually becomes cost of goods sold.
D)Cost of goods sold is recognized when the manufacturing process is complete.

Question

Quizplus · Accepted Answer

Cost of goods sold is recognized when the finished goods are sold and transferred out of inventory, not when the manufacturing process is complete.

Which of the Following Statements Is Incorrect for a Manufacturing