Question

Costs are transferred from the balance sheet to the income statement as cost of goods sold when

A.

direct​ materials, direct labor and manufacturing overhead are transferred to the beginning​ Work-in-Process Inventory account.

B.

the total of Cost of Goods Manufactured is determined.

C.

goods are transferred from the​ Work-in-Process Inventory account to the Finished Goods Inventory account.

D.

finished goods are sold.

Which of the following companies is most likely to use process​ costing?

A.

a music studio

B.

an accounting firm

C.

a building contractor

D.

a breakfast cereal company

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

True

False

Production cost reports prepared using​ first-in, first-out​ (FIFO) method determine the average cost of equivalent units of production by combining beginning inventory costs with current period costs.

True

False

Activity−based costing can be used in determining the cost of services as well as products.

True

False

Answer 1

Dear Student, only one question is allowed at a time. I am answering the first question

1)

When goods are sold, the costs of goods are transferred from inventory account (inventory is credited) and debited to cost of goods sold account as the inventory has reduced and in its place, cost of goods sold has increased

So, as per above discussion, option D is the correct option