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Unformatted text preview: 4) Role of FINISHED GOODS INVENTORY Cost of Goods Manufactured Comes from completion of work in the factory Cost of Goods Manufactured is the Transfers Out of WIP, and Transfers In to FG WORK-IN-PROCESS INVENTORY The balance at the end of any period consists of work that is in progress in the factory. Transfers in to WIP: Direct Materials, Direct Labor, Manufacturing Overheads Direct Labor Traceable labor costs used to manufacture the product Manufacturing Overheads All other costs required to manufacture the product except D/M and D/L Direct Materials Direct materials are the raw materials moved into production Direct materials come from the Raw Materials Inventory RAW MATERIALS INVENTORY Transfers in are purchases of raw materials Transfers out are the raw materials moved into production (direct materials)...
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This note was uploaded on 01/11/2012 for the course ACTG 241 taught by Professor Staff during the Fall '11 term at James Madison University.
- Fall '11