Which of the following costs is not a cost added to the Work in Process account in a process costing system?
A)Manufacturing overhead
B)Direct materials
C)Direct labor
D)Cost of goods sold

Question

Quizplus · Accepted Answer

Cost of goods sold is a cost that is deducted from the finished goods inventory account, not added to the work in process account. The work in process account only includes costs that are incurred during the production process, such as direct materials, direct labor, and manufacturing overhead. Once the products are completed, the costs are transferred to the finished goods inventory account, and when they are sold, the costs are then transferred to the cost of goods sold account.

Which of the Following Costs Is Not a Cost Added