The Entry to Record Cost of Selling a Particular Job

question 127

Multiple Choice

The entry to record cost of selling a particular job in a job-order costing system would include a:

• A) Debit to finished goods inventoryFinished Goods Inventory and a credit to cost of goods soldCost of Goods Sold.
• B) Debit to cost of goods soldCost of Goods Sold and a credit to finished goods inventoryFinished Goods Inventory.
• C) Debit to cost of goods soldCost of Goods Sold and a credit to Wwork in Pprocess Inventory.
• Capitalize account name
• Done.JMF
• D) Credit to Wwork in Pprocess Inventory and a debit to finished goodsFinished Goods Inventory.
• Capitalize account
• Done.JMF
• Capitalize account name
• Done.JMF
• Capitalize account
• Done.JMF

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Definitions:

Caveat Emptor

A Latin phrase meaning "let the buyer beware," indicating that the buyer assumes the risk for the quality and condition of goods purchased unless they are protected by warranty.

Disclosures

The act of making known to the public or to relevant parties important information, often related to financial data or operational details, required by law or regulation.

Sublease

An arrangement where the original tenant leases part or all of the leased property to another party.

Landlord

An individual or entity that owns property and rents it out to tenants.