Question

Costs of Goods Sold of a manufacturing represents the costs related to building a product that are expensed when it is sold. To determine Costs of Goods​ Sold, three formulas where used representing the three different categories of inventory. Which schedule is based on work in process​ inventory?A. Direct Materials Used B. Income StatementC. Cost of Goods SoldD. Costs of Goods Manufactured

Answer 1

Answer:

Costs of Goods Manufactured

Explanation:

Im production raw materials are purchashed and put in to the factory to make goods. The first stage is work in progress (unfinished goods), then finished goods, finally the finished goods are sold.

So the schedule that is based on work in progress inventory (WIP) is the finished goods that is produced from WIP.