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

Question

Quizplus · Accepted Answer

The direct material cost assigned to Job #045391 would be located in the Work-in-Process inventory account because the job was not completed by the end of August. When materials are put into production, they are transferred from the Raw Materials inventory account to the Work-in-Process inventory account. Once the job is completed, the cost is transferred to the Finished Goods inventory account.

Martinez Aerospace Company Uses a Job-Order Costing System