In a job-order cost system, as goods are produced, product costs (direct material, direct labor, and overhead) are accumulated in the:
A)Work in Process Inventory account.
B)Raw Materials Inventory account.
C)Finished Goods Inventory account.
D)Cost of Goods Sold account.

Question

Quizplus · Accepted Answer

In a job-order cost system, product costs are accumulated in the Work in Process Inventory account as goods are produced. This account reflects the costs of direct material, direct labor, and overhead that have been incurred but not yet transferred to finished goods.

In a Job-Order Cost System, as Goods Are Produced, Product