A Company That Uses a Job Order Cost Accounting System

question 159

Essay

A company that uses a job order cost accounting system incurred $10,000 of factory payroll during May. Present the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor.

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Definitions:

Delivery

The act of transferring possession of a good or document from one party to another, fulfilling a contractual obligation.

Document of Title

A legal document that provides evidence of ownership of property or goods.

Negotiable Document

A written instrument that promises payment to the holder and is freely transferable.

Identified

Recognized or distinguished as being a particular entity or object.