When a job is completed in a service organization, the job costs are transferred to the

A) work in process account
B) cost of services account
C) finished goods account
D) cost of goods sold account

Question

When a job is completed in a service organization, the job costs are transferred to theA)  work in process accountB)  cost of services accountC)  finished goods accountD)  cost of goods sold account

Nahjib Guerra · Accepted Answer

Final Answer : B, Explanation :  In a service organization, there are no finished goods or products, so the costs of completed jobs are transferred to the cost of services account. The work in process, finished goods, and cost of goods sold accounts are used in manufacturing or merchandising organizations.

When a job is completed in a service organization, the job costs are transferred to the

A) work in process account
B) cost of services account
C) finished goods account
D) cost of goods sold account

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