The balance in the Work In Process Inventory at any point in time is equal to:
A)The costs for jobs finished during the period but not yet sold.
B)The cost of jobs ordered but not yet started into production.
C)The sum of the costs for all jobs in process but not yet completed.
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 represents the total cost of all incomplete jobs in the company's production process. 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. Choices A and D are incorrect because they only account for jobs that have been finished or started during the period, respectively. Choice B is incorrect because it only accounts for jobs that have been ordered but not yet started, which may not be reflected in the Work in Process Inventory if production has not yet begun. Choice E is incorrect because it only accounts for costs paid during the period, which may not correspond to the actual completion of jobs in progress.

The Balance in the Work in Process Inventory at Any