A Company That Uses a Job Order Cost Accounting System

question 64

Multiple Choice

A company that uses a job order cost accounting system would make the following entry to record the flow of direct materials into production:

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

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Definitions:

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