When work is completed on a job, costs for the completed job are found in which of the following accounts?

Question

Quizplus · Accepted Answer

When work is completed on a job, the costs of the completed job are transferred from the Work in Process Inventory account to the Finished Goods Inventory account. This is because the completed job is now classified as a finished good, ready to be sold. The Cost of Goods Manufactured account tracks the total cost of all goods completed during a specific period, and the Cost of Goods Sold account tracks the cost of goods that have been sold during a specific period. Therefore, the correct account for costs of a completed job is Finished Goods Inventory.

When Work Is Completed on a Job, Costs for the Completed