O'Hare Company Is a Manufacturing Firm That Uses a Job-Order

question 65

Multiple Choice

O'Hare Company is a manufacturing firm that uses a job-order costing system to determine the costs of its products.During the current accounting period,O'Hare used $1,200 of direct raw materials for Job #132.The recognition of this event would reflect an increase in which of the following accounts?

• A) Work in Process Inventory
• B) Finished Goods Inventory
• C) Raw Materials Inventory
• D) Cost of Goods Sold

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position at a particular point in time, showing assets, liabilities, and shareholders' equity.

Liability Reported

The documentation in financial accounting of any debts or financial obligations a company is responsible for.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, used as a reference to measure lease liabilities under lease agreements.

Payments

The act of transferring money or value from one party to another as a settlement for a service, debt, or obligation.