Match the following cost flows with the proper event in a job-costing firm:
-direct materials, direct labor and applied overhead are totaled to yield manufacturing cost of job
A)completion of job
B)end of each accounting period
C)materials are moved from storage into production
D)product is sold
E)end of year

Question

Quizplus · Accepted Answer

Manufacturing cost of a job is totaled at the completion of the job.

Answer: B 
 End of each accounting period is when the total cost incurred for all jobs is tallied, including direct materials, direct labor, and applied overhead.

Answer: C 
 Moving materials from storage to production signifies the beginning of incurring direct materials costs for a job.

Answer: D 
 Sold products do not incur any additional costs, as they have already been completed and accounted for in the total manufacturing cost of the job.

Answer: E 
 The end of the year is not usually a significant event in a job-costing firm for cost flows. It may be used for financial statement reporting purposes, but it does not coincide with any specific job events.

Match the Following Cost Flows with the Proper Event in a Job-Costing