A Company That Uses a Job Order Costing System Would

question 200

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

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Definitions:

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract.

Bailment

The legal relationship where one party, the bailor, temporarily hands over control of property to another, the bailee, for a specific purpose.

Copyright

Legal protection granted to the creators of original works, giving them exclusive rights to use and distribute their work for a certain period of time.

Tangible Personal Property

Personal property that can be physically touched and moved, such as furniture, vehicles, and electronic devices.