A Company That Uses a Job Order Costing System Would

Multiple Choice

A company that uses a job order costing system would make the following entry to record the flow of direct materials into production:

A) debit Work in Process Inventory, credit Raw Materials Inventory.
B) debit Work in Process Inventory, credit Cost of Goods Sold.
C) debit Work in Process Inventory, credit Factory Overhead.
D) debit Finished Goods Inventory, credit Raw Materials Inventory.
E) debit Factory Overhead, credit Raw Materials Inventory.