O'Hare Company is a manufacturing firm that uses a job-order costing system to determine the costs of its products.During the current accounting period,O'Hare used $1,200 of direct raw materials for Job #132.The recognition of this event would reflect an increase in which of the following accounts?
A) Work in Process Inventory
B) Finished Goods Inventory
C) Raw Materials Inventory
D) Cost of Goods Sold

Question

Quizplus · Accepted Answer

The recognition of using $1,200 of direct raw materials for a job would increase the Work in Process Inventory account, as these materials are now being used in the production process for a specific job.

O'Hare Company Is a Manufacturing Firm That Uses a Job-Order