Question

The ending balance in the Work-in-Process Control account represents the costs of all jobs that:

A) have not been completed
B) have been completed but not sold
C) have been completed and sold to customers
D) are reported on the income statement

Answer 1

The ending balance in the Work-in-Process Control account represents all costs associated with unfinished products in manufacturing. This account is a component of a company's inventory system and only includes costs of incomplete production, distinguishing it from national income and various balances related to international trade.

Step-by-step explanation:

The ending balance in the Work-in-Process Control account represents the costs of all jobs that have not been completed (Option A). This account is part of a company's inventory accounts and reflects the ongoing production costs for products that are still in the process of being manufactured. Once a product has been completed, the costs are transferred out of the Work-in-Process account and into the Finished Goods inventory, and from there, costs move to the Cost of Goods Sold when the product is sold. Hence, it is important to note that only unfinished products' costs are reflected in this Work-in-Process Control account balance.

National income is a different concept that encompasses all income earned, including wages, profits, rent, and profit income. The merchandise balance and current account balance relate to international trade and payments, which includes the calculation involving the values for goods, services, and income payments. Overall, the Work-in-Process Control account is a snapshot of the value of inventory goods that have been produced but not yet completed or sold.