Question : Multiple Choice Questions 43.When perpetual inventories maintained in a job order : 1169246

 

Multiple Choice Questions 

43.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.

 

 

 

 

44.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.

 

 

 

 

45.At the end of the accounting period, the balance in the Raw Materials inventory account reflects the cost of materials   

A. assigned to manufacturing overhead.

 

B. issued to production.

 

C. purchased during the period.

 

D. on hand and available for use.

 

 

 

 

46.The following are benefits of a standard cost system except:   

A. consistently costed products.

 

B. assists in identification of manufacturing inefficiencies.

 

C. will result in reducing accounting workload.

 

D. can be used as a basis for setting selling prices.

 

 

 

 

47.At the end of the accounting period, the balance in the Work in Process inventory account reflects the cost   

A. of goods manufactured.

 

B. of completed units.

 

C. of partially completed units.

 

D. of goods sold.

 

 

 

 

48.The advantages of a just-in-time inventory system include all of the following except:   

A. reduction in storage and warehousing cost.

 

B. cost associated with stock outs.

 

C. reduction in working capital requirements.

 

D. reduction in costs associated with recordkeeping.

 

 

 

 

49.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.

 

 

 

 

50.A job order cost sheet would be utilized to track the cost of the following costs except for:   

A. sales commission on the job.

 

B. material issued to the job.

 

C. labor hours worked.

 

D. overhead allocated.

 

 

 

 

51.Actual overhead costs are   

A. debited to Work in Process Inventory when incurred.

 

B. debited to Manufacturing Overhead when incurred.

 

C. debited to Manufacturing Overhead Applied when incurred.

 

D. credited to Manufacturing Overhead when incurred.

 

 

 

 

52.The entry to record the application of overhead to jobs consists of   

A. a debit to Manufacturing Overhead Applied and a credit to Manufacturing Overhead.

 

B. a debit to Manufacturing Overhead and a credit to Manufacturing Overhead Applied.

 

C. a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied.

 

D. a debit to Manufacturing Overhead Applied and a credit to Work in Process Inventory.