Question : Multiple Choice Questions 31. A standard cost system may be used A. only with : 1197760

 

Multiple Choice Questions
 

31. A standard cost system may be used 
A. only with a process cost system.
B. only with a job order cost system.
C. with either a job order cost system or a process cost system.
D. in neither a job order cost system or a process cost system.

 

32. Job order cost accounting is appropriate 
A. when there are continuous operations 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.

 

33. Process cost accounting is appropriate 
A. exclusively for companies that produce only one product.
B. when a company produces more that one product in batches rather than on a continuous basis.
C. when a company produces what each customer wants on special order.
D. when there are continuous operations on standard types of products.

 

34. When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents 
A. the actual costs incurred for labor, materials, and overhead on all jobs that were started but are not yet complete.
B. the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs.
C. only the actual costs for the labor and materials used in uncompleted jobs.
D. only the actual costs for the labor and materials used in completed jobs.

 

35. When indirect materials are requisitioned from the materials storeroom and placed in production, an entry is made crediting Raw Materials Inventory and debiting 
A. Work in Process Inventory.
B. Cost of Goods Manufactured.
C. Manufacturing Overhead Applied.
D. Manufacturing Overhead.

 

36. When materials that will become part of a finished product are removed from the storeroom and placed in production, 
A. Work in Process Inventory is debited.
B. Manufacturing Overhead is debited.
C. Raw Materials Inventory is debited.
D. Work in Process Inventory is credited.

 

37. A raw material subsidiary ledger 
A. contains a raw materials card for each item of direct materials only.
B. contains a raw materials card for each item of indirect materials only.
C. contains a raw materials card for each item of direct materials and indirect materials.
D. contains a raw material card for each supplier of raw materials.

 

38. A firm purchased 25 units of materials with a unit price of $2.00 on 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 of 30 units issued on May 20 would be 
A. $62.50.
B. $60.00.
C. $63.00.
D. $60.50.

 

39. A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the LIFO 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.

 

40. A firm purchased 50 units of materials with a unit price of $1.30 on June 1. On June 15, the firm purchased 50 units with a unit price of $1.20. If the firm uses the LIFO method of inventory pricing, the total cost of 65 units issued on June 20 would be 
A. $83.00.
B. $79.50.
C. $78.00.
D. $84.50.

 

 

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