Exhibit 16-1 Jack Corporation used a job order costing system to account for jobs in its construction division. During April, the following transactions occurred:

-Refer to Exhibit 16-1. Given the information above, the entry to record the purchase of the $4,000 of lumber would include a:

Question

Exhibit 16-1 Jack Corporation used a job order costing system to account for jobs in its construction division. During April, the following transactions occurred:
 
-Refer to Exhibit 16-1. Given the information above, the entry to record the purchase of the $4,000 of lumber would include a:

Quizplus · Accepted Answer

The purchase of lumber on account would increase the Raw Materials Inventory and create a liability, Accounts Payable, which is credited.

Exhibit 16-1 Jack Corporation Used a Job Order Costing System