O'Hare Company is a manufacturing firm that uses a job-order costing system to determine the costs of its products.During the current accounting period,O'Hare transferred total product costs for Job #132 to finished goods.The recognition of this event would:
A) Increase total assets.
B) Decrease total assets.
C) Reduce net income.
D) Have no impact on total assets.

Question

Quizplus · Accepted Answer

Transferring costs from work in progress to finished goods inventory does not change the total assets of a company; it merely reallocates costs within the assets category, from one type of inventory to another.

O'Hare Company Is a Manufacturing Firm That Uses a Job-Order