As production takes place, all manufacturing costs are debited to the:

A) work in process inventory account.
B) manufacturing overhead account.
C) cost of goods sold account.
D) finished goods account.

Question

Jannah Milcah · Accepted Answer

Final Answer : A, Explanation :  The work in process inventory account is used to track the costs of partially completed products as they move through the production process. As manufacturing costs are incurred (such as direct materials, direct labor, and manufacturing overhead), they are debited to the work in process inventory account. Once the product is completed, the costs are transferred to the finished goods inventory account. Therefore, option A is the correct answer. Option B is incorrect because manufacturing overhead is a component of manufacturing costs and is therefore included in the work in process inventory account. Option C is incorrect because the cost of goods sold account is used to track the cost of products that have been sold, not products that are still in production. Option D is incorrect because the finished goods inventory account is used to track the cost of completed products that have not yet been sold.

As production takes place, all manufacturing costs are debited to the:

A) work in process inventory account.
B) manufacturing overhead account.
C) cost of goods sold account.
D) finished goods account.

Definitions

Learning Objectives

Learning Objectives

Related questions

As production takes place, all manufacturing costs are debited to the:A) work in process inventory account.B) manufacturing overhead account.C) cost of goods sold account.D) finished goods account.

Definitions

Learning Objectives

Learning Objectives

Related questions

As production takes place, all manufacturing costs are debited to the:

A) work in process inventory account.
B) manufacturing overhead account.
C) cost of goods sold account.
D) finished goods account.