An increase in the work in process account during the year means that cost of goods manufactured was greater than the manufacturing costs incurred during the year.

Question

Quizplus · Accepted Answer

An increase in the work in process account indicates that not all manufacturing costs incurred during the year were completed and transferred out as finished goods; it does not necessarily mean that the cost of goods manufactured was greater than the manufacturing costs incurred.

An Increase in the Work in Process Account During the Year