Question 1
When indirect materials are requisitioned from the materialsstoreroom and placed in 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.
Question 2
The entry to record the application of overhead to jobs consists ofa 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
Question 3
At the end of the fiscal year, any overapplied or underappliedoverhead is:
A. transferred to the Cost of Goods Sold account in anadjustment.
B. shown on the balance sheet as either a deferred charge or adeferred credit.
C. allocated to Cost of Goods Sold, Finished Goods Inventory, andWork in Process Inventory.
D. transferred to the Cost of Goods Manufactured account in anadjustment.
Question 4
Job order cost accounting is appropriate:
A. on standard types of products
B. when a company produces more than one product in batches ratherthan on a continuous basis.
C. only for goods produced on special order.
D. for all manufacturing companies.
Question 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 FinishedGoods Inventory account to the Cost of Goods Sold account.
C. and the cost of the goods sold is transferred from the Work inProcess Inventory account to the Cost of Goods Sold account.
D. and the cost of goods sold is transferred from the Cost of GoodsManufactured to the Cost of Goods Sold account.
Question 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 priceof $2.10. If the firm uses the FIFO method of inventory pricing,the total cost of 30 units issued on May 20 would be:
A. $62.50.
B. $60.00.
C. $63.00.
D. $60.50.
ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
Click Order Now to get 100% Original Answer Customized to your instructions!
