1. When indirect materials are requisitioned from the materialsstoreroom
and placed i.n production, an entry is made crediting RawMaterials
Inventory and debiting:
a. Work in Process Inventory.
b. Cost of Goods Manufactured.
c. Manufacturing Overhead Applied.
d.Manufacturing Overhead.
2. The entry to record the application of overhead to jobs consistsof a debit
to and a credit to _
__a. Manufacturing Overhead Applied; Manufacturing
Overhead
__ b. Manufacturing Overhead; Manufacturing Overhead
Applied
c. Work in Process Inventory; Manufacturing Overhead
Applied
d.Manufacturing Overhead Applied; Work in Process
Inventory
3. At the end of the fiscal year, any overapplied or underappliedoverhead is:
a.transferred to the Cost of Goods Sold account in an
adjustment.
b. shown on the balance sheet as either a deferred charge or a
deferred credit.
c.allocated to Cost of Goods Sold, Finished Goods Inventory,
and Work in Process Inventory.
d. transferred to the Cost of Goods Manufactured account in an
adjustment.
4.Job order cost accounting is appropriate when there arecontinuous
operations:
a.on standard types of products.
b.when a company produces more than one product in
batches rather than on a continuous basis.
c.only for goods produced on special order.
d.for all manufacturing companies.
5. When a perpetual inventory system is used, sales revenue isrecorded as
products are sold:
__a.but the cost of the goods sold is not recorded.
__ b.and the cost of the goods sold is transferred from the
Finished Goods Inventory account to the Cost of Goods Sold
account.
c.and the cost of the goods sold is transferred from the Work
in Process Inventory account to the Cost of Goods Sold
account.
d.and the cost of goods sold is transferred from the Cost of
Goods Manufactured to the Cost of Goods Sold account.
6.A firm purchased 25 units of materials with a unit price of $2.00on May 5.
On May 15, the firm purchased 25 units with a unit price of $2.10.If the
firm uses the FIFO method of inventory pricing, the total cost of30 units
issued on May 20 would be:
a.$62.50.
b.$60.00.
c.$63.00.
d.$60.50.
7. Job order cost sheets constitute a subsidiary ledger thatsupports the
_____ account.
a. Work in Process Inventory
b.Finished Goods lnventory
c. Raw Materials Inventory
d.Cost of Goods Manufactured
8.Manufacturing overhead includes all of the following EXCEPT:
a. indirect labor.
b.direct labor.
c.utilities.
d.payroll taxes on factory labor.
9.If manufacturing overhead is applied at a rate of$l.50 per directlabor
dollar and the Department Bworker had worked 200 hours at $12.00an
hour on Job L1147, then the applied overhead would be:
a.$ 3,600.
b.$18.
c.$ 300.
d.$ 2,400.
At the end of the year the Manufacturing Overhead account is closedinto
what account?
__a. Work in Process
__b. Finished Goods
__c. Cost of Goods Sold
__d. Manufacturing Overhead Control
11.What form is presented at the storeroom to obtain materials orsupplies
for use in the factory?
a.Materials Request Form
b.Materials Requisition Form
c.Raw Materials Ledger Card
d.Production Order Form
12. During one month, 3,000 units of a product were completed and800 units
were 20-percent complete and still in process. The equivalentproduction
for the month is:
a.3,800 units.
b.4,000 units.
c.3,040 units.
d.3,160 units.
13. Process cost accounting is most appropriate:
a. when there is continuous production on a single product.
b.when a company produces more than one product in batches ratherthan on a continuous basis.
c.for companies with either continuous or batch processing of
different products.
d.for all manufacturing companies.
14.A firm had 600 units in its work in process inventory at thebeginning of a
month. Of these units, 30 percent were complete with respect tolabor,
materials, and overhead. The firm transferred 5,000 units to thefinished
goods inventory during the month. It had 500 units of which 40percent
were complete and still in process at the end of the month.Equivalent
production for the month was:
a.5,680 units.
b.5,380 units.
c.5,200 units.
d.5,180 units.
15.A department transferred 7,000 units to the finished goodsstoreroom
during a month. There was no beginning work in process inventory,but
500 units were still in process at the end of the month.Equivalent
production for the month was 7,400 units, and production costsincurred
totaled $16,800. Inventory costs would be determined using a unitcost of:
a.$2.27.
b.$2.40.
c.$2.24.
d.$2.58.
16. A firm had no work in process at the beginning of a month. Ittransferred
4,000 units to finished goods dl;lring the month, and 500 unitswere still in
process at the end of the month. Equivalent production for themonth was
4,400 units. At what stage of completion were the unfinished unitsat the
end of the month?
a.67 percent
b. 75 percent
c. 20 percent
d.80 percent
17.In a process cost accounting system:
a.the Finished Goods Inventory account is debited for the cost
of completed units any time during the month.
b. the Work in Process Inventory accounts are used to
accumulate the costs for labor, materials, and manufacturing
overhead.
c.manufacturing overhead is not included in the
determination of inventory costs.
d.inventory costs are calculated when goods are sold.
18.At the end of the month, the entry to close the ManufacturingOverhead
control account is recorded as a debit to and a credit to
a. Manufacturing Overhead Applied; Manufacturing
Overhead
b.Work in Process Inventory accounts; Manufacturing
Overhead
c.Manufacturing Overhead; the Work in Process inventory
accounts
d.Manufacturing Overhead; Manufacturing Summary
19.The method that combines the cost of beginning inventory and thecurrent
costs of the period is the:
a.market value process costing method.
b.method of net realizable value.
c.replacement cost method.
d.average method of process costing.
20.Total costs accounted for in each department consist of the:
a. cumulative cost plus the work in process-ending costs.
b. total costs twnsferred out Jess the total work inprocessending
costs.
c. cumulative cost plus total costs transferred out.
d.total costs transferred out plus the total work inprocessending
costs.
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