ACCT2302OnlineSp2018 Quiz Ch17Quiz This Question 1 pt 7 of 2

ACCT2302-Online-Sp2018 Quiz: Ch17-Quiz This Question: 1 pt 7 of 2 In a job order costing system, a credit to Finished Goods Inventory will be accompanied by a debit to A. Accounts Receivable B. Cost of Goods Sold O D. Work- in-Process Inventory O C. Sales Revenue Esc Fs

Solution

in a job order costing system a credit to finished goods inventory will be accompnaies by cost of goods sold.

The cost of goods sold increases when the goods is sold and the finished inventory decreases, so the cost of goods sold is debited and finished inventory is credited.