Question

Which of the following is true? Question 1 options: Cost of Goods Sold includes only units that are finished during the period. Finished Goods Inventory and Cost of Goods Sold may have balances at the beginning of the period and at the end of the period. The transfer from Work in Process Inventory to Finished Goods Inventory during a period is the DM, DL, and OH cost of units started and finished during the period. The Work in Process Inventory at the end of the period is the DM, DL, and OH cost of unfinished units at the end of the period.

Answer 1

Answer:

The Work in Process Inventory at the end of the period is the DM, DL, and OH cost of unfinished units at the end of the period.

Explanation:

The Work in Process Inventory at the end of the period is the DM, DL, and OH cost of unfinished units at the end of the period.

TRUE . It will be compose of the cost of the infinished units as they aren't finished cannot be move to that account at the end of the period.

Cost of Goods Sold includes only units that are finished during the period.

Not correct as the inventory which is not sold at the end of a period can be sale in another and therefore be part of the COGS

Finished Goods Inventory and Cost of Goods Sold may have balances at the beginning of the period and at the end of the period.

Not correct. As the COGS is a temporary account it has no beginning or ending balance

The transfer from Work in Process Inventory to Finished Goods Inventory during a period is the DM, DL, and OH cost of units started and finished during the period.

Not correct, it will include the beginning WP as well