When a Job Is Completed and All Costs Have Been

question 96

Multiple Choice

When a job is completed and all costs have been accumulated on a job cost sheet the journal entry that should be made is

• A)Increase Finished Goods Inventory and decrease Raw Materials Inventory Factory Labor and Manufacturing Overhead.
• B)Increase Work in Process Inventory and decrease Raw Materials Inventory Factory Labor and Manufacturing Overhead.
• C)Increase Raw Materials Inventory and decrease Work in Process Inventory.
• D)Increase Finished Goods Inventory and decrease Work in Process Inventory.

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Definitions:

Doubtful Accounts

Accounts receivable that a company believes might become uncollectible in the future, leading to potential losses.

Due Date

The specific date by which a task must be completed or a payment must be made to avoid penalties.

Computing Interest

The process of calculating the interest payment on a loan or investment based on the principal amount, rate, and time.

Maturity Date

The specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.