Question

When a job is completed and all costs have been accumulated on a job cost sheet, the

journal entry that should be made is
A) Finished Goods Inventory
Direct Materials
Direct Labor
Manufacturing Overhead
B) Work In Process Inventory
Direct Materials
Direct Labor
Manufacturing Overhead
C) Raw Materials Inventory
Work In Process Inventory
D) Finished Goods Inventory
Work In Process Inventory

Answer 1

The journal entry that should be made when a job is completed and all costs have been accumulated on a job cost sheet is Finished Goods Inventory Work In Process Inventory.

Step-by-step explanation:

The journal entry that should be made when a job is completed and all costs have been accumulated on a job cost sheet is Option D) Finished Goods Inventory Work In Process Inventory.

When a job is completed, the costs associated with that job are transferred from the Work In Process Inventory account to the Finished Goods Inventory account. This reflects that the job has been completed and the goods are now ready to be sold.

For example, if a company finishes manufacturing a batch of bicycles, the costs of the materials, labor, and manufacturing overhead used in the production process would be transferred from the Work In Process Inventory to the Finished Goods Inventory through a journal entry.