Cost of goods manufactured decreases the Work in Process Inventory account.

Question

Quizplus · Accepted Answer

This is true because the cost of goods manufactured represents the total cost of all goods that were completed during the period, and this cost is transferred from the Work in Process Inventory account to the Finished Goods Inventory account. Therefore, as the cost of goods manufactured decreases, the balance in the Work in Process Inventory account also decreases.

Cost of Goods Manufactured Decreases the Work in Process Inventory