Which One of the Following Should Be Equal to the Balance

question 136

Multiple Choice

Which one of the following should be equal to the balance of the Work In Process Inventory account at the end of the period?

• A) The total of the amounts transferred from raw materials for the current period
• B) The sum of the costs shown on the job cost sheets of unfinished jobs
• C) The total of manufacturing overhead applied to work in process for the period
• D) The total manufacturing costs for the period

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Definitions:

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased by consumers.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.

Work In Process

Inventory items that are in the process of being manufactured but are not yet completed.

Differential Costs

The difference in total costs that will arise from selecting one alternative over another in decision-making situations.