Asked by Jocelyn Raygoza on Jul 02, 2024
The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had production costs of $375,000. The entry to record the transfer of costs from finished goods to cost of goods sold is 
Finished Goods
Items that are finished with the production phase but are still awaiting sale or delivery to consumers.
Cost of Goods Sold
The direct costs attributable to the production of goods sold by a company, including materials and labor costs.
- Understand the specific accounts and entries associated with completing jobs and moving costs in manufacturing accounts.
- Gain an understanding of how costs are transferred in a manufacturing setup, including processes, finished inventory, and the expenses of goods sold.
Learning Objectives
- Understand the specific accounts and entries associated with completing jobs and moving costs in manufacturing accounts.
- Gain an understanding of how costs are transferred in a manufacturing setup, including processes, finished inventory, and the expenses of goods sold.