In the job order costing system, the finished goods account is the controlling account for the factory overhead ledger.

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In the job order costing system, the Finished Goods account is the controlling account for individual jobs completed, not for the factory overhead ledger. The factory overhead is applied to jobs based on a predetermined rate and is part of the Work in Process account before being transferred to Finished Goods upon completion.

In the Job Order Costing System, the Finished Goods Account