Under a job order costing system, how are accumulated costs treated when a compa

ID: 2551821 • Letter: U

Question

Under a job order costing system, how are accumulated costs treated when a company finishes a job?

Question 10 options:

Accumulated costs are assigned to batches and transferred to Work in Process Inventory (WIP)

Accumulated costs are recorded as cost of goods sold on the income statement

Accumulated costs are recorded as overhead on the income statement

Accumulated costs are moved from Work in Process Inventory (WIP) to finished goods inventory

Accumulated costs are assigned to batches and transferred to Work in Process Inventory (WIP)

Accumulated costs are recorded as cost of goods sold on the income statement

Accumulated costs are recorded as overhead on the income statement

Accumulated costs are moved from Work in Process Inventory (WIP) to finished goods inventory

Option A is correct, that is Accumulated cost of finished job is transferred to work in process inventory.

Each batch or job completed, the accumulated cost is transferred to work in process control account.

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