COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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dr. Finished Goods Inventorycr. Direct Materialscr. Direct Laborcr. Manufacturing Overhead
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dr. Raw Materials Inventorycr. Work In Process Inventory
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dr. Work in Process Inventorycr. Direct Materialscr. Direct Laborcr. Manufacturing Overhead
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dr. Finished Goods Inventorycr. Work In Process Inventory
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Detailed explanation-1: -Question 16 When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is Increase Finished Goods Inventory and decrease Raw Materials Inventory, Factory Labor, and Manufacturing Overhead.
Detailed explanation-2: -A job cost sheet is a document detailing all the costs incurred for the completion of a project. These costs can be documented during the project or after the job is complete. Usually, the accounting department compiles this record to: verify that expenses fell within the allocated budget. cost estimate for future jobs.
Detailed explanation-3: -Create a journal entry When adding a COGS journal entry, debit your COGS Expense account and credit your Purchases and Inventory accounts. Inventory is the difference between your COGS Expense and Purchases accounts. Your COGS Expense account is increased by debits and decreased by credits.
Detailed explanation-4: -Cost sheet: In job costing, a cost sheet is often used to record costs incurred in stages of production. The cost sheet and job order work may also be combined, when costs are recorded on the production order document.
Detailed explanation-5: -Answer and Explanation: The correct answer is a. Materials requisition slip. Material requisition slip is a document used to record the used direct materials or amount of direct materials that were transferred from raw materials to work in process account during the period.