A finished sign made in March is still unsold at the year end. Its pro…

Question

A finished sign made in March is still unsold at the year end. Its production cost sits in:

Accepted Answer

A. Ending inventory

1. No sale means no matching revenue yet.
2. Without revenue there is nothing for the cost to match against.
3. The cost remains in ending inventory.
_Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._

Answer

Employee wages

Answer

Exchange reserves

Answer

Estimated revenue

A finished sign made in March is still unsold at the year end. Its production cost sits in:

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