As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in
A)cost of goods sold.
B)work in process.
C)materials.
D)finished goods.

Question

Quizplus · Accepted Answer

Materials, direct labor, and applied manufacturing overhead are costs associated with the production process and are therefore recorded in the work in process account. They are not recorded in cost of goods sold (which records the cost of finished goods sold to customers) or finished goods (which records the cost of completed goods that are ready for sale).

As Production Occurs, Materials, Direct Labor, and Applied Manufacturing Overhead