Which of the Following Statements About Manufacturing Cost Flows Is

Multiple Choice

Which of the following statements about manufacturing cost flows is false?

A) Direct materials, direct labor, and manufacturing overhead are entered in the Work-in-Process Inventory account.
B) The Finished-Goods Inventory account will contain entries that reflect the cost of goods sold during the period.
C) The cost of units sold during the period will typically appear on the income statement.
D) When a company sells goods that cost $54,000 for $60,000, the firm will enter $6,000 in an account entitled Profit on Sale.
E) Units are normally transferred from Work-in-Process Inventory to Finished-Goods Inventory.