Conversion of inputs to outputs is recorded in the
A)Work in Process Inventory account.
B)Finished Goods Inventory account.
C)Raw Material Inventory account.
D)both a and b.

Question

Quizplus · Accepted Answer

Conversion of inputs to outputs is part of the production process, therefore it is recorded in the Work in Process Inventory account. The Finished Goods Inventory account only records completed goods ready for sale, while the Raw Material Inventory account records materials that have not yet been used in production.

Conversion of Inputs to Outputs Is Recorded in the