Question

If materials being placed into production are not traced to a specific job...

A) They are considered direct materials
B) They are recorded as overhead
C) Job costing is not affected
D) They are treated as finished goods

Answer 1

If materials being placed into production are not traced to a specific job, they are recorded as overhead. Job costing is still affected as the costs will be assigned to different jobs, but the specific materials used in each job are not directly tracked.

Step-by-step explanation:

If materials being placed into production are not traced to a specific job, they are recorded as overhead. This means that the costs associated with those materials are allocated to various jobs based on predetermined allocation rates.

Job costing is still affected as the costs will be assigned to different jobs, but the specific materials used in each job are not directly tracked.