The balance in the Work in Process account equals:
A)the balance in the Finished Goods inventory account.
B)the balance in the Cost of Goods Sold account.
C)the balances on the job cost sheets of uncompleted jobs.
D)the balance in the Manufacturing Overhead account.

Question

Quizplus · Accepted Answer

The Work in Process account represents the cost of unfinished products that are still in the production process. This includes the cost of direct materials, direct labor, and manufacturing overhead for all jobs in progress. Therefore, the balance in the Work in Process account is calculated by summing up the costs of all unfinished jobs, which are documented on the job cost sheets. It is not related to the balances in any other account, such as Finished Goods inventory, Cost of Goods Sold, or Manufacturing Overhead.

The Balance in the Work in Process Account Equals