Under a Job Order Cost System of Accounting,the Entry to Distribute

question 12

Multiple Choice

Under a job order cost system of accounting,the entry to distribute payroll to the appropriate accounts would be:

• A)Debit-Payroll Credit-Wages Payable
• B)Debit-Work in Process Debit-Factory Overhead
• Debit-Selling and Administrative Expense
• Credit-Payroll
• C)Debit-Work in Process Debit-Finished Goods
• Debit-Cost of Goods Sold
• Credit-Payroll
• D)Debit-Work in Process Debit-Factory Overhead
• Debit-Selling and Administrative Expense
• Credit-Wages Payable

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Definitions:

Fixed Cost

Expenses that do not change with the level of goods or services produced by a business.

Total Revenue

The total amount of money generated by a company or entity from its primary activities, such as sales of goods or services, before any expenses are deducted.

AVC

Short for Average Variable Cost, it is the total variable costs (such as labor and materials) divided by the quantity of output produced.

ATC

Stands for "Average Total Cost," which is the total cost per unit of output in economics, calculated by dividing the total cost by the quantity produced.