Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Cost of materials is removed from Raw Materials Inventory account and added to Work-in-Process Inventory

Question

Quizplus · Accepted Answer

When materials are removed from storage into production, it indicates the start of a job and the cost of those materials are added to Work-in-Process Inventory.

Answer: A
 When a job is completed, the cost of materials, labor, and overhead are added up and allocated to the job. This allocation includes the cost of materials added to Work-in-Process Inventory during the job.

Answer: D
 Once a product is sold, the cost of the product is removed from Finished Goods Inventory and transferred to Cost of Goods Sold. This cost includes the cost of materials used to produce the product.

The options for B and E are not applicable to job-costing event.

Match Each Following Cost Flows with Their Corresponding Job-Costing Event