alleryStart learning →Which three costs are debited to Work in Process under job order costing?
AMaterials, selling costs and overhead
BMaterials, labor and factory overhead
CMaterials, labor and period expenses
DLabor, overhead and administration
Answer & Solution
Correct answer: B. Materials, labor and factory overhead
1. The three costs of production accumulate in Work in Process, which acts as the tab for the manufactured item.
2. There are three debits to that account, one for direct materials, one for direct labor and one for factory overhead.
3. The total of those three debits equals the cost of producing the item.
4. Selling and administrative costs are period costs and never enter Work in Process.
_Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 2.1 Introduction_
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