The journal entries needed for job costing at a service company

Question

Quizplus · Accepted Answer

Job costing at a service company involves tracking costs associated with providing services to a customer, such as labor and overhead costs. There is no movement of inventory involved, making the journal entries simpler than those needed at a manufacturing company. For example, a service company may need to record wages paid to employees for a specific job, whereas a manufacturing company would need to record the cost of raw materials, direct labor, and manufacturing overhead for each unit produced. Therefore, choice D is correct.

The Journal Entries Needed for Job Costing at a Service