Match the following cost flows with the proper event in a job-costing firm:
-Costs of product are removed from finished goods and added to cost of goods sold

Question

Quizplus · Accepted Answer

When the product is sold, its costs are removed from finished goods and added to cost of goods sold in the income statement.

Answer: B or E
 At the end of each accounting period or year, the costs of finished goods not sold are adjusted to reflect the ending inventory, and the costs of sold goods are added to cost of goods sold.

Answer: C
 When materials are removed from storage into production, they become direct or indirect costs of the job, and are added to the job cost sheet.

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