Question

Stephanie’s company uses a job order cost system. Stephanie just made a $15,000 debit to the Work in Process Inventory account for raw materials assigned to job 1074. Which of the following steps does Stephanie also need to complete?

A. Posting a $15,000 decrease in Direct Labor to the subsidiary ledger for job 1074.B. Posting a $15,000 increase in Direct Materials to the job cost sheet for job 1074.C. Posting a $15,000 increase in Direct Labor to the job cost sheet for job 1074.D. Posting a $15,000 increase in Raw Materials to the subsidiary ledger for job 1074.

Answer 1

B. Posting a $15,000 increase in Direct Materials to the job cost sheet for job 1074

Explanation:

According to the given situation, Materials account of the specific work will be debited as costs are allocated to Jobs. Assigning those costs to operate would reduce the balance of inventories.

Therefore from the above explanation the correct answer is b as it has been posted $15,000 which is rising the direct material to the job cost sheet for job 1074.