Match the following cost flows with the proper event in a job-costing firm:
-schedule of costs of goods sold is prepared
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

The preparation of the schedule of costs of goods sold typically occurs at the end of each accounting period, so the best match is choice B.

Answer: A 
 The completion of a job is typically associated with the transfer of costs from work-in-progress inventory to finished goods inventory, so the best match is choice A.

Answer: C 
 The movement of materials from storage into production typically triggers the recording of cost information in the accounting system, so the best match is choice C.

Answer: D 
 The sale of a product typically results in the recognition of revenue and a corresponding reduction in inventory levels, so the best match is choice D.

Answer: E 
 The end of the year may prompt various activities related to accounting, such as the preparation of financial statements, but it does not have a specific cost flow associated with it in a job-costing firm. None of the choices are a good match for this scenario.

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