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:
Purchased $ \$ 4,000 $ of lumber (raw materials) on account. Incurred direct labor costs of $ \$ 8,000 $.
Depreciation on construction equipment of $ \$ 1,600 $ was recorded.
A house that was completed in March at a cost of $ \$ 160,000 $ was sold for $ \$ 184,000 $.
-Refer to Exhibit 16-1. Given the information above, the entry to record the sale of the house 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:
Purchased $ \$ 4,000 $ of lumber (raw materials) on account. Incurred direct labor costs of $ \$ 8,000 $.
Depreciation on construction equipment of $ \$ 1,600 $ was recorded.
A house that was completed in March at a cost of $ \$ 160,000 $ was sold for $ \$ 184,000 $. 
-Refer to Exhibit 16-1. Given the information above, the entry to record the sale of the house would include a:

Quizplus · Accepted Answer

The sale of the house requires recording the cost of the house as an expense, which involves debiting Cost of Goods Sold.

Exhibit 16-1 Jack Corporation Used a Job Order Costing System $4,000 \$ 4,000 $4,000

Exhibit 16-1 Jack Corporation Used a Job Order Costing System $\$ 4,000$