The entry to record the completion of a job in a job costing system would cause:
A)An increase to the cost of goods manufactured account.
B)An increase in net income.
C)An increase to the Cost of Goods Sold account.
D)A decrease to the Work in Process Inventory account.

Question

Quizplus · Accepted Answer

The completion of a job means that the costs associated with that job have been fully incurred and should be transferred from the Work in Process Inventory account to the Finished Goods Inventory account. This means that there would be a decrease to the Work in Process Inventory account. None of the other options would be affected by the completion of a job.

The Entry to Record the Completion of a Job in a Job