When absorption costing is compared with job order costing, O entries in the gen

Question

When absorption costing is compared with job order costing, O entries in the general ledger for job order costing are different from those in absorption costing O both require using a subsidiary ledger for Work-in-process inventory both treat factory overhead, fixed and variable, as a product cost. O all of the above statements are true. Save Question 2 (3 points) Almo Company operates two factories: Plant D applies factory overhead to jobs on the basis of dire Plant M Plant D Fstimated annual factory overhead costs $120,000 $48,000

Explanation / Answer

Solution: entries in the general ledger for job order costing are different from those in absorption costing

Explanation: The entries under job order costing and absorption costing because the product cost varies in terms of fixed and variable costs. Under absorption costing system, the product cost includes variable and fixed manufacturing costs, however under job order costing only variable costs are considered

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