Asked by Anezi Ilene on Jun 01, 2024

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

Cost Of Goods Manufactured

The total production cost of goods completed during a specific period.

Work In Process Inventory

Inventory that consists of items in the production process but not yet completed, considered a current asset on the balance sheet.

  • Understand the method of documenting transactions associated with cost transfers in process costing.
  • Absorb information regarding the process cost summary and its components, notably equivalent units of production and the calculation of cost per equivalent unit.
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ZK
Zybrea KnightJun 03, 2024
Final Answer :
True
Explanation :
This is a true statement. The cost of goods manufactured refers to the total cost of units that have been produced during a specific accounting period and are ready for sale in the finished goods inventory. It includes direct materials, direct labor, and manufacturing overhead costs.