State the false statement of Company C uses
Answer to Problem 1STQ
Option B is the correct answer.
Explanation of Solution
Job order costing:
Job order costing is one of the methods of cost accounting under which is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products are significantly different from each other.
Justification for Incorrect answers:
Option a:
Individual job cost sheets accumulate all
Option c:
The amount of direct materials used in individual’s jobs is recorded by debiting the work in process inventory account and crediting the material inventory account, as well as entering the amount used on the individual job cost sheets. This is a process of job order costing. Hence option Cis incorrect option.
Option d:
The manufacturing
Justification for Correct answer:
Option b:
Direct labor cost applicable to individual jobs is recorded when paid by a debit work in process inventory and a credit to cash, as well as by entering the amount on the job cost sheets. This is a wrong process of job order costing, need to record work in process inventory as debit and need to credit direct labor cost instead of cash. Hence the option B is correct answer.
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