When products are completed, their product costs are transferred from work in process inventory to the:
A) manufacturing overhead accounts.
B) finished goods account.
C) cost of goods sold account.
D) indirect labour account.

Question

Quizplus · Accepted Answer

When products are completed, their cost is transferred to the finished goods account until they are sold. Once sold, their cost is then transferred to the cost of goods sold account.

When Products Are Completed, Their Product Costs Are Transferred from Work