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 recognized cost of goods sold of $4,850 for Job #132.The recognition of this event will include a decrease to which of the following accounts?
A) Cost of Goods Sold.
B) Production Supplies.
C) Work in Process Inventory.
D) Finished Goods Inventory.

Question

Quizplus · Accepted Answer

The recognition of cost of goods sold for Job #132 means that the job has been completed and sold, thus reducing the Finished Goods Inventory as the costs are transferred out of this account and into Cost of Goods Sold.

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