Which of the following is one of the purposes of cost accounting?
1 It involves measuring product costs.
2 It involves the determination of company profits.
3 It requires GAAP to be applied.
4 It requires cost minimizing principles.
1. It involves measuring product costs.
A process cost...
which of the following is one of the purposes of cost accounting 1 it involves measuring product costs 2 it involves the determination of company profits 3 it requires gaap to b
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Module 4 2021/2022
Which of the following is one of the purposes of cost accounting?
1 It involves measuring product costs.
2 It involves the determination of company profits.
3 It requires GAAP to be applied.
4 It requires cost minimizing principles. - answer1. It involves measuring product costs.
A process cost system would most likely be used by a company that makes?
1 music videos.
2 repairs to electric bicycles.
3 ramen noodles.
4 college graduation announcements. - answer3. Ramen Noodles
As of December 31, 2022, Stand Still Industries had $2500 of raw materials inventory.
At the beginning of 2022, there was $2000 of materials on hand. During the year, the
company purchased $375000 of materials; however, it paid for only $312500. How
much inventory was requisitioned for use on jobs during 2022?
In a job order cost system, the Work in Process Inventory account is:
1 an expense.
2 a control account.
3 not used.
4 a period cost. - answer2 A control account
Records of individual items of raw materials would not be maintained:
1 electronically.
2 manually.
3 on stores ledger cards.
4 in the Raw Materials Inventory account. - answer4 in the Raw Materials Inventory
account.
Factory labor costs:
1 accumulate in advance of utilization.
2 accumulate in a control account.
3 include sick pay earned by factory workers.
4 accumulate in the Factory Labor Expense account. - answer3 include sick pay earned
by factory workers.
, Module 4 2021/2022
Manufacturing Overhead does not include amounts paid for
1 factory utilities.
2 property taxes on the manufacturing facility.
3 supervisor labor costs.
4 the CEO's salary. - answer4 the CEO's salary.
Which one of the following best describes a job cost sheet?
1 It is a form used to record the costs chargeable to a specific job and to determine the
total and unit costs of the completed job.
2 It is used to track manufacturing overhead costs to specific jobs.
3 It is used by management to understand how direct costs affect profitability.
4 It is a daily form that management uses for tracking worker productivity on which
employee raises are based. - answer1 It is a form used to record the costs chargeable
to a specific job and to determine the total and unit costs of the completed job.
A materials requisition slip shows that direct materials requisitioned were $66000 and
indirect materials requisitioned were $9000. The entry to record the transfer of materials
from the storeroom is: - answerWork in Process Inventory$66000
Manufacturing Overhead$9000
Raw Materials Inventory$75000
Materials requisition slips are costed
1 by production supervisors.
2 by factory personnel who work on the production line.
3 after the goods have been sold.
4 using any of the inventory costing methods. - answer4 using any of the inventory
costing methods.
Which one of the following should be equal to the balance of the Work in Process
Inventory account at the end of the period?
1 The total of the amounts transferred from raw materials for the current period
2 The sum of the costs shown on the job cost sheets for unfinished jobs
3 The total of manufacturing overhead applied to Work in Process for the period
4 The total manufacturing costs for the period - answer2 The sum of the costs shown on
the job cost sheets for unfinished jobs
The principal accounting record used in assigning costs to jobs is
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