On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory. A. TrueB. False

Question

Business

Nancy Wang

9 April, 09:22

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory. A. TrueB. False

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Answers (1)

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Dulce Nolan · Answer 1

A. True

Explanation:

The cost of direct materials, direct labor, and factory overhead are recorded as Material inventory then work in process and at last in finished goods on different stages of Production. It is valued during every production step on the closing of period. So, It is True that on the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.