Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:
A) started in process during the period.
B) in process during the period.
C) completed and sold during the period.
D) completed during the period.

Question

Quizplus · Accepted Answer

The correct answer is D) completed during the period. In a job-order costing system, costs are accumulated by individual jobs. When a job is completed, its total cost is transferred from Work in Process to Finished Goods. This transfer does not depend on when the job was started or sold, but rather on its completion status within the period.

Under a Job-Order Costing System, the Dollar Amount Transferred from Work