The typical journal entries used to accumulate costs in a job order costing system record the

• purchase, for cash or on credit, of raw materials for use in production.

• issuance of direct material to Work in Process Inventory.

• incurrence of direct labor hours and pay.

• incurrence of actual overhead costs.

• application of predetermined overhead to jobs in process.

• completion of jobs and transfer of those jobs to Finished Goods Inventory.

• sale of the products for cash or credit.

• removal of products from Finished Goods In¬ ventory upon sale and the expensing of the to¬ tal production cost to Cost of Goods Sold.

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