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

Which of the following best describes what is included in the total cost of a job under a job order costing system?

Applied manufacturing overhead and selling expenses

Direct labor and administrative expenses

Direct materials, direct labor, and applied manufacturing overhead

Direct materials and direct labor only

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Verified step by step guidance

Understand the concept of a job order costing system: This system is used to assign costs to specific jobs or batches of products. It is commonly used in industries where products are customized or produced in small batches.

Identify the components of total cost in a job order costing system: The total cost of a job includes direct materials, direct labor, and applied manufacturing overhead. These are the three primary cost components in this system.

Clarify the terms: Direct materials are the raw materials that can be directly traced to the job. Direct labor refers to the wages of workers who can be directly associated with the job. Applied manufacturing overhead includes indirect costs such as utilities, depreciation, and factory maintenance that are allocated to the job using a predetermined overhead rate.

Eliminate incorrect options: Selling expenses and administrative expenses are not included in the total cost of a job under a job order costing system because they are considered period costs, not product costs.

Conclude with the correct answer: The total cost of a job under a job order costing system includes direct materials, direct labor, and applied manufacturing overhead, as these are the costs directly associated with producing the job.