Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

The costs assigned to a job that has been sold are reported on the:

Cost of Goods Sold account

Work in Process Inventory account

Raw Materials Inventory account

Finished Goods Inventory account

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Verified step by step guidance

Understand the concept of job costing: In job costing, costs are accumulated for specific jobs or projects. Once a job is completed and sold, the costs associated with that job are transferred to the Cost of Goods Sold account.

Review the purpose of the Cost of Goods Sold account: This account represents the direct costs of producing goods that have been sold during a specific period. It includes materials, labor, and overhead costs directly tied to the sold job.

Differentiate between inventory accounts: Work in Process Inventory tracks costs for jobs that are still in production, Raw Materials Inventory tracks the cost of materials not yet used, and Finished Goods Inventory tracks completed jobs that have not yet been sold.

Recognize the flow of costs: Costs move from Raw Materials Inventory to Work in Process Inventory during production, then to Finished Goods Inventory once the job is completed, and finally to Cost of Goods Sold when the job is sold.

Conclude that the correct account for costs assigned to a sold job is the Cost of Goods Sold account, as it reflects the expenses incurred for goods that have been sold.