What Journal Entry Should Be Made When a Job Is

question 10

Multiple Choice

What journal entry should be made when a job is completed and all costs have been accumulated on a job cost sheet?

• A)a debit to Finished Goods Inventory, and a credit to Work in Process Inventory
• B)a debit to Work in Process Inventory, and a credit to Direct Materials, Direct Labour, and Manufacturing Overhead
• C)a debit to Finished Goods Inventory and a credit to Direct Materials, Direct Labour, and Manufacturing Overhead
• D)a debit to Cost of Goods Sold Inventory, and a credit to Work in Process Inventory

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Definitions:

Interim Statements

Financial reports prepared and presented for periods shorter than a fiscal year, such as quarterly or monthly financial statements.

Prepaid Rent

An expense account that represents rent payments made in advance of the rental period, treated as an asset on the balance sheet until the period to which it relates passes.

Adjusting Entry

Accounting records entries recorded at the close of an accounting period for the purpose of assigning incomes and expenses to the timeframe in which they truly transpired.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from total revenues.