A Company That Uses a Job Order Costing System Would

question 129

Multiple Choice

A company that uses a job order costing system would make the following entry to record the flow of direct materials into production:

• A)debit Work in Process Inventory,credit Cost of Goods Sold.
• B)debit Work in Process Inventory,credit Raw Materials Inventory.
• C)debit Work in Process Inventory,credit Factory Overhead.
• D)debit Factory Overhead,credit Raw Materials Inventory.
• E)debit Finished Goods Inventory,credit Raw Materials Inventory.

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Definitions:

Quarterly withdrawals

The act of taking out money from a financial account or investment four times a year, often at the end of each fiscal quarter.

Registered Retirement Income Fund

A retirement savings plan that holds investment products and pays out retirement income.

Equal withdrawals

Regularly scheduled payments of the same amount taken from an investment or savings account.

Compounded monthly

Interest calculation method where interest is added to the principal sum once a month, affecting the total interest accrued over time.