CHAPTER 19-JOB ORDER COSTING Study 0 Progress Submit Quiz Previous 0 Page 3 of 9
ID: 2399263 • Letter: C
Question
CHAPTER 19-JOB ORDER COSTING Study 0 Progress Submit Quiz Previous 0 Page 3 of 9 E0 Next o0 During July, Jamal Company incurred factory overhead as follows: utilities, $6,500; accumulated depreciation, $2,500; and indirect salaries, $3,600. Which of the following journal entries is correct? a. Utilities Expense, $6,500 Dr; Depreciation Expense, $2,500 Dr.; Wages Expense, $3,600 Dr.; b. Accounts Payable, $12,600 Dr.; Utilities Expense, $6,500 Cr: Depreciation Expense, $2.500 Ci c. Factory Overhead, $12,600 Dr.; Utilities Payable, $6,500 Cr.; Accumulated Depreciation, $2.500 Cr; d. Work in Process, $12,600 Dr; Utilities Expense, $6,500 Cr; Accumulated Depreciation, $2,500 Cr.; Accounts Payable, $12,600 Cr Wages Payable, $3,600 Cr Wages Payable, $3,600 Cr Wages Payable, $3,600 Cr CHAPTER 19-JOB ORDER COSTING G Previous 0 Page 2 of 90 Next 0 All of the following statements are true regarding cost accounting systems except Study 0Progress Submit Quiz a. a company must use either a job order cost system for all of its products/services or a process cost system for all of its products/services-it cannot use both. b. a company may use a job order cost system for some of its products and a process cost system for c. managers use product costs from cost accounting systems for setting product prices, controlling d. a job order cost system provides product costs for each quantity of product that is manufactured. other products. operations, and developing financial statements.Explanation / Answer
1) correct option is "C"
since all indirect cost is related to manufacturing of product it will be debited factory overhead account .
2)
correct option is "A"
A company can use job order costing for some of its product /services and process costing for other . so the given statement is false that company cannot use both .
Account Debit credit Factory overhead 12600 utilities payable 6500 Accumulated depreciation 2500 wages payable 3600