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

Question

Quizplus · Accepted Answer

When materials are removed from storage into production, the cost of materials is removed from the materials account and added to the work in process account. This is the proper cost flow for this event in a job-costing firm.

Answer: A
 When a job is completed, the total cost of the job is transferred from work in process to finished goods. This cost flow does not involve the removal of materials from the materials account.

Answer: D
 When a product is sold, the cost of goods sold is recorded and the inventory account is reduced. This cost flow does not involve the transfer of costs from materials to work in process.

Answer: B and E
 At the end of each accounting period and at the end of the year, the accounting records are adjusted to reflect the correct balances in the various accounts. This may involve the transfer of costs from one account to another, but there is no specific cost flow associated with these events in a job-costing firm.

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