COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost of Goods Sold
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Purchases of Raw Materials
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Materials Inventory
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Work-in-process Inventory
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Detailed explanation-1: -Job cost sheets are the subsidiary ledger for Work in Process Inventory ("Assigning Manufacturing Costs to Work in Process"). A. factory labor.
Detailed explanation-2: -In a perpetual inventory system, the maintenance of a separate subsidiary ledger showing data about the individual items on hand is essential.
Detailed explanation-3: -The job cost sheet reports manufacturing costs for each job. It also serves as a subsidiary ledger for the work-in-process inventory account.
Detailed explanation-4: -An inventory subsidiary ledger records transactions that effect inventory. A separate account is created for each item offered for sale and contained in inventory. Each item can be tracked in three column entries that record purchases, sales and account balances.