The cost of units transferred from Work in Process Inventory to Finished Goods Inventory is called the cost of goods manufactured.

Question

Quizplus · Accepted Answer

The cost of goods manufactured includes all costs incurred in the production process, including direct materials, direct labor, and manufacturing overhead. It is the total cost of goods completed during the period and transferred from Work in Process Inventory to Finished Goods Inventory.

The Cost of Units Transferred from Work in Process Inventory