Question

Production costs are transferred from one​ Work-in-Process Inventory account to the next and eventually to​ ________. A. Manufacturing Overhead B. Accounts Payable C. Finished Goods Inventory D. Sales Revenue

Answer 1

Answer:

The correct answer is letter "C": Finished Goods Inventory.

Explanation:

Work-In-Progress or WIP is an asset on the Balance Sheet of the company. WIP is the total cost of the unfinished products still under production. Those costs are transferred then into the finished goods account and when the goods are sold they are recorded into the costs of the sales account.

Answer 2

Answer: Finished Goods Inventory

Explanation: Finished Goods are goods whose manufacture/production has been completed, but which are not yet on sale or distributed to the end-user/customer. Production costs are transferred from one​ Work-in-Process Inventory account to the next and eventually to​ the Finished Goods Inventory. This is an inventory that contains the amount of manufactured products in stock that are available for customers to buy.