In a job costing system, when a firm issues materials to the shop floor, it removes the cost from:

Question

Quizplus · Accepted Answer

When materials are issued to the shop floor, they are still in the process of being used in production and are therefore classified as part of the raw materials inventory. The cost of the materials will only be removed from the raw materials inventory once they have been fully used and included in the cost of goods manufactured.

In a Job Costing System, When a Firm Issues Materials