The balance in the Work in Process Inventory at any point in time is equal to:
A) The costs for jobs finished during the period but not yet sold.
B) The cost of jobs ordered but not yet started into production.
C) The sum of the costs for all jobs in process but not yet completed.
D) The costs of all jobs started during the period, completed or not.
E) The sum of the materials, labor and overhead costs paid during the period.

Question

Quizplus · Accepted Answer

The work in process inventory represents the total cost of all unfinished products in production. Therefore, the balance in the Work in Process Inventory at any point in time is equal to the sum of the costs for all jobs in process but not yet completed. Option A is incorrect because it only considers the costs of jobs finished but not yet sold, which may not be in the Work in Process Inventory. Option B is incorrect because it only considers the cost of jobs not yet started, which are not in the Work in Process Inventory. Option D is incorrect because it includes the costs of all jobs started during the period, regardless of completion status, which may not be in the Work in Process Inventory. Option E is incorrect because it only considers the costs paid during the period, which may not reflect the total Work in Process Inventory balance.

The Balance in the Work in Process Inventory at Any