The sum of all amounts transferred from the Work in Process account to the Finished Goods account represents the Cost of Goods Sold for the period.

Question

Quizplus · Accepted Answer

The sum of all amounts transferred from the Work in Process account to the Finished Goods account represents the Cost of Goods Manufactured, not the Cost of Goods Sold. Cost of Goods Sold is calculated when finished goods are sold.

The Sum of All Amounts Transferred from the Work in Process