What is cost of goods sold? Describe the flow of this cost through the job order costing system. Your answer should include the accounts involved and whether the flow involves a debit or credit
What will be an ideal response
When the job is sold, the costs are transferred out of Finished Goods Inventory with a credit and transferred into Cost of Goods Sold with a debit. This amount is the job's cost of goods sold. Cost of Goods Sold is an expense on the income statement.
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Indicate whether the statement is true or false
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