Final answer:
The collection of all job cost sheets constitutes a work-in-process inventory file, recording direct materials, direct labor, and manufacturing overhead for each job in production. The correct option is b. job cost sheets.
Step-by-step explanation:
A work-in-process inventory file is the collection of all b. job cost sheets. Job cost sheets are essential documents in cost accounting that record all the costs related to a particular job. These costs are direct materials, direct labor, and manufacturing overhead applied to that job. Tracking these costs is critical for companies in job order costing systems where each job or batch of goods is customized and therefore has distinct production costs.
Work-in-process inventory represents the goods that are still in the production process and are not yet complete. As the costs of these goods are incurred, they are recorded on the job cost sheet. The accumulation of job cost sheets forms the work-in-process inventory file, which provides an overview of the expenses associated with incomplete jobs. It’s important for businesses to maintain accurate work-in-process records to manage their production costs effectively, allocate resources efficiently, and determine the profitability of each job. The correct option is b. job cost sheets.