When Raw Materials Are Transferred Out of the Storeroom to the Factory

question 317

True/False

When raw materials are transferred out of the storeroom to the factory, their cost is transferred out of raw materials inventory and into work in process inventory.

---

Definitions:

Net Of Tax

This refers to the amount left after taxes have been subtracted from the total or the calculation made taking taxes into account.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a particular period of time.

Linkage

The connection or relationship between two or more factors, objects, or systems.

Period Costs

Expenses that are not directly tied to the production of goods and are expensed in the period they are incurred.