Question

LO 4.7In a job order cost system, factory wage expense is debited to which account?

raw materials inventory
work in process inventory
finished goods inventory
cost of goods sold

Answer 1

In a job order cost system, factory wage expense is debited to work in process inventory.

Step-by-step explanation:

The costing of job orders is a system for assigning and accumulating production costs for a single production unit. When different produced items differ enough and each has considerable costs, the job order costing system is used.

The costs of each jobs include direct materials, direct work and production overhead in order to summarize the cost system for jobs. While the product is being produced, the process inventory includes direct materials and direct labor costs.