Which one of the following should be equal to the balance of the Work In Process Inventory account at the end of the period?
A) The total of the amounts transferred from raw materials for the current period
B) The sum of the costs shown on the job cost sheets of unfinished jobs
C) The total of manufacturing overhead applied to work in process for the period
D) The total manufacturing costs for the period

Question

Quizplus · Accepted Answer

The balance of the Work In Process Inventory account at the end of the period should be equal to the sum of the costs shown on the job cost sheets of unfinished jobs. This is because the Work In Process Inventory account reflects the costs incurred for all unfinished jobs, and the job cost sheets show the accumulated costs for each individual job that is still in progress. The other options do not necessarily reflect the actual costs incurred for unfinished jobs and therefore should not be equal to the balance of the Work In Process Inventory account.

Which One of the Following Should Be Equal to the Balance