Chapter 15 Review Job Order Costing and Analysis

What journal entry records the sale of jobs on account in job order costing? Debit Accounts Receivable; credit Sales Debit Cost of Goods Sold; credit Finished Goods Inventory Debit Finished Goods Inventory; credits Goods in Process Inventory Debit Goods in Process Inventory; credit Factory Overhead

Debit Accounts Receivable; credit Sales A = Correct entry - Recording sales on account increases (debits) Accounts Receivable asset account and increases (credits) Sales revenue account. B = Records cost of jobs sold C = Records cost of jobs completed D = Records applying overhead to production

What journal entry records the cost of jobs sold in job order costing? Debit Accounts Receivable; credit Sales Debit Cost of Goods Sold; credit Finished Goods Inventory Debit Finished Goods Inventory; credit Goods in Process Inventory Debit Goods in Process Inventory; credit Factory Overhead

Debit Cost of Goods Sold; credit Finished Goods Inventory B = Correct entry - Recording cost of jobs sold increases (debits) Cost of Goods Sold expense account and decreases (credits) Finished Goods Inventory asset account. A = Records sales of jobs on account C = Records completion of jobs. D = Records applying overhead to production

What journal entry records the depreciation of factory equipment in job order costing? Debit Factory Overhead; credit Accumulated Depreciation Debit Factory Overhead; credit Cash Debit Factory Overhead; credit Utilities Payable Debit Goods in Process Inventory; credit Factory Overhead

Debit Factory Overhead; credit Accumulated Depreciation A = Correct entry - Recording factory depreciation increases (debits) the Factory Overhead account and increases (credits) the related Accumulated Depreciation account. B = Records payment of factory overhead expenses C = Records accrual of factory utilities D = Records applying overhead to production

What journal entry records indirect labor costs in job order costing? Debit Factory Overhead; credit Factory Payroll Debit Factory Payroll; credit Cash Debit Goods in Process Inventory; credit Factory Payroll

Debit Factory Overhead; credit Factory Payroll A = Correct Entry - Recording the use of indirect labor costs in production increases (debits) the Factory Overhead account and decreases (credits) the Factory Payroll account. B = Records payment of factory payroll C = Assigns cost of direct labor used in production

What journal entry records use of indirect materials in job order costing? Debit Factory Overhead; credit Raw Materials Inventory Debit Goods in Process; credit Raw Materials Inventory Debit Raw Materials Inventory; credit Accounts Payable Debit Goods in Process; credit Factory Overhead

Debit Factory Overhead; credit Raw Materials Inventory A = Correct Entry - Recording use of indirect materials in production increases (debits) the Factory Overhead account and decreases (credits) the Raw Materials Inventory asset account. B = Assigns cost of direct materials used in production C = Records purchase of raw materials on account D = Records applying overhead costs to production

What journal entry records the accrual of factory utilities in job order costing? Debit Factory Overhead; credit Accumulated Depreciation Debit Factory Overhead; credit Cash Debit Factory Overhead; credit Utilities Payable Debit Goods in Process Inventory; credit Factory Overhead

Debit Factory Overhead; credit Utilities Payable C = Correct entry - Recording accrual of factory utilities increases (debits) the Factory Overhead account and increases (credits) the Utilities Payable liability account. A = Records factory depreciation B = Records payment of factory overhead expenses D = Records applying overhead to production

What journal entry records cost of jobs completed in job order costing? Debit Accounts Receivable; credit Sales Debit Cost of Goods Sold; credit Finished Goods Inventory Debit Finished Goods Inventory; credit Goods in Process Inventory Debit Goods in Process Inventory; credit Factory Overhead

Debit Finished Goods Inventory; credit Goods in Process Inventory C = Correct entry - When jobs are completed, they are moved to the finished goods area. Recording the completion of jobs increases (debits) the Finished Goods Inventory asset account and decreases (credits) the Goods in Process Inventory asset account. A = Records sale of jobs on account B = Records cost of jobs sold D = Records applying overhead to production

What journal entry records application of (applying) factory overhead to production in job order costing? Debit Factory Overhead; credit Cash Debit Factory Overhead; credit Factory Payroll Debit Factory Overhead; credit Raw Materials Inventory Debit Goods in Process Inventory; credit Factory Overhead

Debit Goods in Process Inventory; credit Factory Overhead D = Correct entry - Recording the application of factory overhead to production increases (debits) the Goods in Process Inventory asset account and decreases (credits) the Factory Overhead account. A = Records payment of factory overhead expenses B = Records use of indirect labor in production C = Records use of indirect materials in production

What journal entry assigns direct labor costs to production in job order costing? Debit Factory Overhead; credit Factory Payroll Debit Factory Payroll; credit Cash Debit Goods in Process Inventory; credit Factory Payroll

Debit Goods in Process Inventory; credit Factory Payroll C = Correct Entry - Assigning cost of direct labor used in production increases (debits) the Goods in Process Inventory asset account and decreases (credits) the Factory Payroll account. A = Records use of indirect labor in production B = Records payment of factory payroll

What journal entry assigns cost of direct materials to production in job order costing? Debit Factory Overhead; credit Raw Materials Inventory Debit Goods in Process; credit Raw Materials Inventory Debit Raw Materials Inventory; credit Accounts Payable Debit Goods in Process; credit Factory Overhead

Debit Goods in Process; credit Raw Materials Inventory B = Correct Entry - Assigning cost of direct materials used in production increases (debits) Goods in Process Inventory asset account and decreases (credits) Raw Materials Inventory asset account. A = Records use of indirect materials in production C = Records purchase of raw materials on account D = Records applying of factory overhead costs to production

What journal entry records purchase of materials on account in job order costing? Debit Factory Overhead; credit Raw Materials Inventory Debit Goods in Process Inventory; credit Raw Materials Inventory Debit Goods in Process Inventory; credit Factory Overhead Debit Raw Materials Inventory; credit Accounts Payable

Debit Raw Materials Inventory; credit Accounts Payable D = Correct Entry - Purchase of materials on account increases (debits) the Raw Materials Inventory asset account and increases (credits) the Accounts Payable liability account. A = Records use of indirect materials in production B = Assigns cost of direct materials used to production C = Records applying of factory overhead costs to production