When do inventoriable costs become expenses?
A) When direct materials are purchased
B) When the manufacturing process begins
C) When the manufacturing process is completed
D) When the product is sold

Question

Quizplus · Accepted Answer

Inventoriable costs become expenses when the product is sold. Until then, they are part of the inventory on the balance sheet. Once the product is sold, the cost of goods sold account is debited and the inventory account is credited, which means that the inventoriable costs are now expenses.

When Do Inventoriable Costs Become Expenses