Fogel Flight Company uses a job-order costing system.The direct materials for Job #045391 were purchased in September and put into production in October.The job was not completed by the end of October.At the end of October,in what account would the direct material cost assigned to Job #045391 be located?

Question

Quizplus · Accepted Answer

Since the job was not completed by the end of October, the direct material cost assigned to Job #045391 would be located in the Work-in-Process inventory account. This is because the direct materials are considered to be part of the work-in-progress for that particular job until the job is completed. Raw materials inventory is used to record the cost of all raw materials that are purchased but not yet put into production, finished goods inventory is used to record the cost of completed jobs ready for sale, and cost of goods manufactured is the total cost of all goods completed during a period.

Fogel Flight Company Uses a Job-Order Costing System