whsch of the following descibes the flow of peodkuct costs in a manufacturnng co

Question

whsch of the following descibes the flow of peodkuct costs in a manufacturnng company O Product coss are tist accumuated in on nsset account onvencay) and then transtered to an espense account (Cost of Goods Soikn) when the products are sots Prodit cost are first accumulated r, an experse acourt (Cost of Goods Sidaroithentrarstered to an asset occout O Product costs are recorded i on expense accoun (Cost of Goods Sol) as the goods are being manifschred O Product costs are never expensed account (Cost of Goods Solt and then transeered to an asset account @nventory) When the goods are so 5

Explanation / Answer

4.The flow of Product Cost in a manufacturing company describes:

transferred to an expense account (Cost of Goods Sold) when the products are sold.

Answer : Option 1

5.   Wages paid

Dr           wages expense       (increase in expense i.e. decrease in income)

Cr            Cash                     ( decrease in asset)

Answer : Option 2

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