In process costing,which account will the cost of finished goods be transferred to when the goods are sold?
A)cost of goods sold
B)completed processes
C)finished goods
D)sales

Question

Quizplus · Accepted Answer

In process costing, when finished goods are sold, their cost is transferred from the finished goods account to the cost of goods sold account. This is because the cost of goods sold represents the cost of producing or acquiring the goods that were sold during the period, and process costing tracks the cost of production as the goods move through various production processes. Completed processes and finished goods accounts are used to track the cost of goods as they move through the production process, but they are not used to record the cost of goods sold once the goods are sold. The sales account is used to record the revenue from the sale of the goods, not the cost.

In Process Costing,which Account Will the Cost of Finished Goods