Good output definition
/What is Good Output?
Good output refers to units of production that have passed the quality standards of a business. These units are then packaged for final sale and stored in the warehouse as finished goods.
Accounting for Good Output
Once goods pass quality inspection, you can assign manufacturing costs to them. This is likely to involve the assignment of direct costs, which are typically direct materials and direct labor, along with an allocation of factory overhead costs. If the units are sold, the assigned costs are then charged to expense. If the units are stored in inventory, the assigned costs are instead retained as an asset, until such time as the units are sold