A Company That Uses a Job Order Cost Accounting System

Multiple Choice

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

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