If the cost of goods manufactured is less than the cost of goods sold which of the following is correct?
A) Finished Goods Inventory has increased.
B) Work in Process Inventory has increased.
C) Finished Goods Inventory has decreased.
D) Work in Process Inventory has decreased.

Question

Quizplus · Accepted Answer

When the cost of goods manufactured is less than the cost of goods sold, it implies that the company has sold more than it has produced in the period, leading to a decrease in Finished Goods Inventory.

If the Cost of Goods Manufactured Is Less Than the Cost