To which account is the cost of inventory transferred when a product is sold?
A) Sales
B) Operating expenses
C) Inventory sold
D) Cost of goods sold

Question

Quizplus · Accepted Answer

When a product is sold, the cost of the inventory used to produce that product is transferred to the Cost of Goods Sold (COGS) account. This account is used to track the cost associated with producing and selling goods, and is typically categorized as an expense on the income statement. Therefore, the best choice is D.

To Which Account Is the Cost of Inventory Transferred When