The balance in the Work in Process Inventory at any point in time is equal to:
A) The cost of jobs ordered but not yet started into production.
B) The sum of the costs for all jobs in process but not yet completed.
C) The costs for jobs finished during the period but not yet sold.
D) The costs of all jobs started during the period, completed or not.
E) The sum of the materials, labor and overhead costs paid during the period.

Question

Quizplus · Accepted Answer

The Work in Process Inventory account represents the costs of all jobs that are currently being worked on but have not yet been completed. Therefore, the balance in the Work in Process Inventory at any point in time is equal to the sum of the costs for all jobs in process but not yet completed. Option A is incorrect because it refers only to the cost of jobs ordered but not yet started, whereas Work in Process Inventory includes jobs that have been started. Option C is incorrect because it refers only to costs for jobs finished during the period, not jobs that are still in progress. Option D is incorrect because it includes costs for all jobs started during the period, completed or not, whereas Work in Process Inventory only includes jobs that are still in progress. Option E is incorrect because it refers to the costs paid during the period, but Work in Process Inventory includes costs incurred over multiple periods.

The Balance in the Work in Process Inventory at Any