When Perpetual Inventories Are Maintained in a Job Order Cost

question 42

Multiple Choice

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents:

• A)the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs.
• B)the actual costs incurred for labor, materials, and overhead on all jobs that were started but are not yet complete.
• C)only the actual costs for the labor and materials used in uncompleted jobs.
• D)only the actual costs for the labor and materials used in completed jobs.

---

Definitions:

Rule 504

A provision of Regulation D of the U.S. Securities and Exchange Commission that allows companies to freely sell up to $5 million of securities in a 12-month period without extensive registration.

General Solicitations

Activities by companies to advertise or solicit a wider range of investors or the public at large, typically related to the offering of securities.

Nonpublic Issuer

An entity that does not offer its securities for sale to the general public, often subject to less stringent reporting requirements.

Material Misstatements

Significant inaccuracies or omissions in financial statements that could influence the decision-making of users of those statements.