Match the following cost flows with the proper event in a job-costing firm:
-cost of materials is removed from materials account and added to work-in- process account
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

When materials are moved from storage into production, their cost is removed from the materials account and added to the work-in-process account.

Answer: A
 When a job is completed, its total cost is determined and removed from the work-in-process account and added to the finished goods account.

Answer: D
 When a product is sold, its cost is removed from the finished goods account and added to the cost of goods sold account. The materials cost would have already been included in the finished goods account.

The other choices (B and E) do not involve the specific event of cost flowing from the materials account to the work-in-process account.

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