When Perpetual Inventories Are Maintained in a Job Order Cost

question 38

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

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Definitions:

Ordinary Shares

Securities that represent ownership in a corporation, giving the holder voting rights and a share in the company's profits via dividends.

Deferred Creditor

An entity to whom a payment is owed but the payment is delayed or deferred to a future date.

Trade Creditors

Amounts owed by a business to its suppliers for goods and services purchased on credit.

Liquidator's Remuneration

Compensation paid to a liquidator for carrying out the process of winding up a company, including selling off assets, paying creditors, and distributing any remaining funds to shareholders.