11 ABC Company operates on a job order system and has no wor

11. ABC Company operates on a job order system and has no work in process or finished goods inventory at the end of a period. When it closes its manufacturing overhead account, which of the following is affected? A. Inventory B. Revenue C. Selling and administrative expenses D. Cost of Goods Sold

Solution

In the Job order system as there will be no Inventory and work-in-progress, The manufacturing overheads are allocated to the Cost of Goods sold. The costs are transferred to the Cost of Goods sold.