job order costing
product cost - direct materials, direct labor , manufacturing overhead period cost - selling costs and administrative costs inventory= balance sheet when a sale happens cost of good sold goes to income statement Purchase RM raw materials Inv. accounts payable salary incur factory labor wages payable MOH Incur manufactoring OHD utilities payable accounts payable use RM WIP Inventory Manufactoring overhead raw materials Inventory Record Labor WIP inventory Manufactoring Overhead Apply MOH WIP Inventory Manufactoring OHD