Producing finished goods in a manufacturing environment has which of the following financial impacts?
Producing finished goods in a manufacturing environment has which of the following financial impacts?
Producing finished goods in a manufacturing environment involves converting overhead costs, along with raw materials and labor, into finished goods. Once production is complete, these finished goods are considered an asset on the balance sheet. Therefore, the correct answer is the conversion of overhead costs to assets.
should be (B)
Agree must be B.
If price the cost of product as RM + Labor + Overhead - then once it is completed - doesn't it become our Asset?