Question

1 In a job order cost accounting system, the total balances on the entire job cost sheets for unfinished jobs equals the balance in the Goods in Process Inventory account.

Select one:

True

false

2

Return on total assets for a cost center is a useful measure to evaluate the cost center manager.

Select one:

True

False

False

3

Under a job order cost accounting system, individual jobs are always charged with actual overhead costs when they are transferred to finished goods.

Select one:

True

False

4

A company that uses a job order cost accounting system would make the following entry to record the flow of direct materials into production:

Select one:

a. debit Work in Process, credit Cost of Goods Sold

b. debit Work in Process, credit Materials

c. debit Work in Process, credit Factory Overhead

d. debit Factory Overhead, credit Materials

e. debit Finished Goods, credit Materials

Answer 1

rate positively ..

Ans 1 –

Statement is TRUE : In a job order cost accounting system, the total balances on the entire job cost sheets for unfinished jobs equals the balance in the Goods in Process Inventory account.

Ans 2

Statement is FALSE: Cost center manager should be measured on cost center level performance and not based on return on asset.

Ans 3

Statement is FALSE : Jobs are charged based on applied overhead rate and not on actual overhead rate.

Ans 4 :Correct answer is option : b. debit Work in Process, credit Materials