Question

Which of the following is not viewed as part of accumulating manufacturing costs in a job order cost system?

a. Manufacturing overhead is incurred.
b. Raw materials are purchased.
c. Factory labor is incurred.
d. Cost of goods sold is recognized.

Answer 1

The cost of goods sold is not considered part of accumulating manufacturing costs in a job order cost system, as it is recognized after manufacturing costs have been accounted for and the goods sold.

Step-by-step explanation:

The question asks which of the following is not viewed as part of accumulating manufacturing costs in a job order cost system. Manufacturing costs typically include all costs that are directly tied to the creation of a product, which generally encompasses:

• Raw materials: These are the basic materials used in the production process.
• Factory labor: This includes the wages for those workers directly involved in manufacturing.
• Manufacturing overhead: Indirect costs related to manufacturing, which may include utilities, rent, and depreciation of machinery.

However, the Cost of goods sold (COGS) is recognized once the manufacturing costs have been accounted for and the goods have been sold; it's not considered part of the accumulating manufacturing costs. Therefore, d. Cost of goods sold is recognized as the correct answer as it is not viewed as part of accumulating manufacturing costs in a job order cost system.