Asked by jacob azukas on May 08, 2024
Verified
During the year, any inventory that is sold is transferred to the finished goods account.
Finished Goods Account
The finished goods account is an inventory account that tracks the cost of manufactured goods or products that are completed and ready for sale.
- Recognize the importance of managing inventory accounts in the manufacturing sector.
Verified Answer
YS
Yasmyne SmithMay 15, 2024
Final Answer :
False
Explanation :
Inventory that is sold is transferred out of the inventory account and recorded in the cost of goods sold (COGS) account, not into the finished goods account. Finished goods account is used to store the cost of products that are completed and ready for sale, before they are sold.
Learning Objectives
- Recognize the importance of managing inventory accounts in the manufacturing sector.
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