Product Costing - Stages of Manufacturing

The video tutorial explains how to apply costs to products in a manufacturing setting. It covers the three stages of production: raw materials, work in process, and finished goods. Each stage has its own inventory account, and the video details how costs flow through these accounts. It also explains how to calculate inventory balances and costs, including direct and indirect materials, labor, and manufacturing overhead.

What components are added to work in process inventory?

What happens to finished goods inventory when a product is sold?

How is the cost of goods manufactured calculated?