In Job Order Costing, the Journal Entry to Issue Indirect

question 25

Multiple Choice

In job order costing, the journal entry to issue indirect materials to production should include which of the following?

• A) Credit to Finished goods inventory
• B) Credit to Materials inventory
• C) Credit to Manufacturing overhead
• D) Credit to Work in process inventory

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Definitions:

Average Operating Assets

The average value of the assets involved in the daily operations of a business over a specific period, used to measure efficiency.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of the shareholders.

Net Operating Income

A measure of a company's profitability from its regular, core business operations, excluding deductions of interest and taxes.