Western Governors University (WGU) ACCT3314 D101 Cost and Managerial Accounting Practice Exam

A debit to work-in-process inventory signifies an increase in jobs being processed. In job costing, the work-in-process inventory account is used to capture the costs associated with jobs that are not yet completed. When direct materials, direct labor, or manufacturing overhead are added to these jobs, they are debited to the work-in-process inventory account, reflecting that additional resources have been allocated to these jobs as they are in progress. This increase indicates that the company is actively processing these jobs and represents ongoing production activity.

Other options, like a reduction of direct materials, transfer to finished goods, or payment for manufacturing overhead, do not accurately describe the implication of a debit to work-in-process inventory. These actions follow different accounting entries and processes that do not align with the fundamental purpose of the work-in-process account in job costing.