A company's file of job cost sheets for jobs that are completed but not yet sold equals the balance in the Finished Goods Inventory account.

Question

Quizplus · Accepted Answer

This statement is true. The Finished Goods Inventory account is used to record the cost of completed products that are not yet sold. The cost of these products includes direct materials, direct labor, and manufacturing overhead costs. The job cost sheets for these completed jobs represent the total cost of the products, which is reflected in the balance of the Finished Goods Inventory account.

A Company's File of Job Cost Sheets for Jobs That