Costs Are Transferred from the Balance Sheet to the Income

Multiple Choice

Costs are transferred from the balance sheet to the income statement as cost of goods sold when ________.

A) finished goods are sold
B) goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account
C) direct materials, direct labor and manufacturing overhead are transferred to the beginning Work-in-Process Inventory account
D) the total of Cost of Goods Manufactured is determined