O'Hare Company, is a manufacturing firm that uses a job-order cost 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?

Question

Quizplus · Accepted Answer

The recognition of cost of goods sold for job #132 will decrease the Finished Goods Inventory account, as the goods have been sold and are no longer in inventory.

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