In a Job Order Cost Accounting System, the Entry to Record

question 144

Multiple Choice

In a job order cost accounting system, the entry to record the flow of direct materials into production is:

• A) debit Work in Process, credit Materials
• B) debit Materials, credit Work in Process
• C) debit Factory Overhead, credit Materials
• D) debit Work in Process, credit Supplies

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a set of rules and standards designated for accounting practices and financial reporting in the U.S.

Debts

Obligations of an entity arising from past transactions or events, requiring the entity to transfer assets or provide services to other entities in the future.

Liabilities

A company's financial debts or obligations that arise during the course of business operations.

Accounts Receivables

Dues owed by customers to a firm for the provision of goods or services that have been delivered but remain unpaid.