Which of the following statements about manufacturing cost ﬂows is false?
A)Direct materials, direct labor, and manufacturing overhead are entered in the Work-in-
B)The Finished-Goods Inventory account will contain entries that reﬂect the cost of goods
C)The cost of units sold during the period will typically appear on the income statement.
D)When a company sells goods that cost $54,000 for $60,000, the ﬁrm will enter $6,000 in
E)Units are normally transferred from Work-in-Process Inventory to Finished-Goods

Question

Quizplus · Accepted Answer

The amount entered in the accounting records when goods are sold is the sales price of the goods, not the cost of goods sold. The cost of goods sold would be calculated by subtracting the cost of the goods from the sales price.

Which of the Following Statements About Manufacturing Cost ﬂOws Is