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ACCT101 - Ch.2.
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- SAFe 5.1 Questions And Answers 2024
Exam of 10 pages for the course SAFe 5.1 Questions and Answers 2024 at SAFe 5.1 Questions and Answers 2024 (ACCT101 - Ch.2.)
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ACCT101 - Ch.21) Which of the following is a reason why a job order costing system is
appropriate for a custom 1) furniture manufacturer?
A) Custom furniture manufacturers produce large quantities of similar products.
B) The direct costs incurred for each job are the same, only indirect costs vary.
C) The raw materials used have already been accounted for using process
costing. D) The cost incurred for each job will differ as per the order
specifications. - CORRECT ANSWER-D) The cost incurred for each job will differ
as per the order specifications.
2) Which of the following is the correct order of the four steps of tracking product
costs?
A) accumulate → assign → allocate → adjust
B) adjust → allocate → accumulate → assign C) assign → accumulate →
allocate → adjust D) allocate → adjust → accumulate → assign - CORRECT
ANSWER-A) accumulate → assign → allocate → adjust
3) A major purpose of a cost accounting system is to ________.
A) assist creditors in determining whether to grant a loan
B) compute the cost of goods sold for the income statement
C) show investors a company is operating efficientlyD) classify all costs as
operating or marketing costs - CORRECT ANSWER-B) compute the cost of
goods sold for the income statement
4) The entry to record the purchase of raw materials on account would include a
________.
A) debit to the Work-in-Process Inventory account
B) credit to the Raw Materials Inventory account
C) credit to the Work-in-Process Inventory account
D) debit to the Raw Materials Inventory account - CORRECT ANSWER-D) debit
to the Raw Materials Inventory account
, 5) Which of the following accounts would be debited in the journal entry to record
the issuance of direct materials?
A) Work-in-Process Inventory B) Finished Goods Inventory C) Cost of Goods
Sold D) Raw Materials Inventory - CORRECT ANSWER-A) Work-in-Process
Inventory
7) The journal entry to issue $800 of direct materials and $60 of indirect materials
to production involves debit(s) to the ________.
A) Work-in-Process Inventory account for $800 and Manufacturing Overhead
account for $60
B) Work-in-Process Inventory account for $860
C) Manufacturing Overhead account for $860
D) Work-in-Process Inventory account for $800 and Finished Goods Inventory
account for $60 - CORRECT ANSWER-A) Work-in-Process Inventory account for
$800 and Manufacturing Overhead account for $60
6) The journal entry to issue indirect materials to production should include a
debit to the ________.
A) Work-in-Process Inventory account B) Finished Goods Inventory accountC)
Raw Materials Inventory account D) Manufacturing Overhead account -
CORRECT ANSWER-D) Manufacturing Overhead account
Adelphia Manufacturing issued $80,000 of direct materials and $8000 of indirect
materials for 8) production. Which of the following journal entries would correctly
record the transaction?
Manufacturing Overhead
88,000
Raw Materials Inventory
88,000
Work-in-Process Inventory
88,000
Raw Materials Inventory
88,000
Work-in-Process Inventory
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