The account Work-in-Process Inventory:
A)Consists of completed goods that have not yet been sold.
B)Consists of goods being manufactured that are incomplete.
C)Consists of materials to be used in the production process.
D)Consists of the cost of new materials used,labor but not overhead.

Question

Quizplus · Accepted Answer

Work-in-Process Inventory consists of goods that are being manufactured but are not yet completed. This inventory account represents the cost of the materials used, direct labor, and overhead allocated to the goods that are in the production process but have not yet been completed. Option A is incorrect because completed goods that have not yet been sold are typically recorded in the Finished Goods Inventory account. Option C is incorrect because materials to be used in the production process are typically recorded in the Raw Materials Inventory account. Option D is incorrect because the Work-in-Process Inventory account includes the cost of both direct materials and labor as well as overhead.

The Account Work-In-Process Inventory