Total costs of finished goods are transferred from Production department to distribution department (in Finished Goods Control Account). What is meant by this? Does it mean to say that good sold are transferred to Distributions with records of costs?
Costs are gradually accumulated in the production department as the goods are being made. When the goods are finished they are physically transferred to the distribution department and their associated costs are are moved to finished goods. From there they are sold and inventory moves into cost of sales.