CAF-5 · Chapter 6 · Question 4 of 10
In a job costing system, what is the correct double entry to record the issuance of direct materials from the store to a specific job (e.g., Job 123)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Debit: Work in Process - Job 123 / Credit: Materials Control
Explanation
When direct materials are issued to a specific job, their cost becomes part of the active production for that job. Therefore, the WIP account for the specific job is debited, and the Materials Control account is credited.
More Job and Service Costing MCQs
- Q6When production overheads are absorbed into the cost of a specific job based on a predetermined rate, which account is credited?
- Q7A specific job (Job 453) incurs direct materials of Rs. 10,000, direct labour of Rs. 6,000, and direct expenses of Rs. 4,000. Production…
- Q8When a job is completed and the goods are transferred to the finished goods warehouse awaiting the customer's disposition, what is the…
- Q9Which of the following is a specific defining characteristic of "Service Costing" compared to traditional product costing?
- Q10A hotel operates 80 standard twin-bedded rooms and is fully occupied for 350 days a year. The total running costs for the year are Rs…