ECONOMICS

Detailed explanation-1: -The given statement is false. The finished goods inventory account is credited for the cost of goods sold during a period, not for the cost of goods manufactured. In accounting, the finished goods inventory account is used to track the value of products that have been completed and are ready for sale.

Detailed explanation-2: -When goods that were in process are completed, the entry is to debit finished goods and credit work-inprocess. When merchandise is sold, the entry is to debit cost of goods sold and credit finished goods.

Detailed explanation-3: -When an item is ready to be sold, it is transferred from finished goods inventory to sell as a product. You credit the finished goods inventory, and debit cost of goods sold.

Detailed explanation-4: -The finished goods inventory formula (finished goods inventory = beginning finished goods + cost of manufactured goods-COGS) refers to the calculation businesses use to determine how many inventory items are ready for sale.