The Posting Reference Columns Are Used to Trace Transactions from the Accounts

question 173

Multiple Choice

The Posting Reference columns are used to trace transactions from the accounts to the journal. What will be entered in the Posting Reference column of (1) the journal and (2) the account?

• A) (1) the amount of the debit or credit and (2) the journal page number
• B) (1) the journal page number and (2) the date of the transaction
• C) (1) the journal page number and (2) the account number
• D) (1) the account number and (2) the journal page number

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Definitions:

Process Costing

An accounting methodology used to allocate costs to units of production, applicable in industries where products are indistinguishable from each other, such as chemicals or food processing.

Conversion Costs

The total of direct labor costs added to manufacturing overhead expenses, symbolizing the cost incurred to transform raw materials into completed products.

Casting Department

A specialized department in a manufacturing company where materials are poured into molds to create a part or component of the final product.

Equivalent Unit

A term used in cost accounting to represent a unit of production in partially completed goods adjusted for the degree of completion.