Under a Job Order Costing System, the Dollar Amount of the Entry

question 45

Multiple Choice

Under a job order costing system, the dollar amount of the entry involved in the transfer of goods from work in process to finished goods is the total of the costs charged to all jobs

• A) started during the period.
• B) completed and sold during the period.
• C) completed during the period.
• D) started and completed during the period.

---

Definitions:

First-In, First-Out

An inventory valuation method where the first goods purchased or produced are the first ones to be sold or used, presuming that older inventory is used before newer inventory.

Units Completed

The total number of units produced and finished during a specific period in the manufacturing process.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service and an integral part of the finished product.

Direct Labor

The labor costs directly associated with the production of goods, including wages for workers who are physically involved in creating a product.