Question

Indirect materials are any materials needed to make a product that can be directly traced to the product.

True

False

Journalizing the entry to record a job completed would include a debit to

a.Finished Goods

b.Factory Overhead

c.Work in Process

d.Cost of Goods Sold

The direct labor and overhead costs of providing services to clients are accumulated in

a.Work in Process

b.Administrative Salaries Expense

c.Overhead

d.Finished Services Expense

The journal entry to record the transfer of 1,040 units of part number 1177 with a value of $1.20 each, to work in process is

a.

Work in Process	1,248
Cash		1,248

b.

Materials	1,248
Work in Process		1,248

c.

Work in Process	1,248
Factory Overhead		1,248

d.

Work in Process	1,248
Materials		1,248

Answer 1

1) Indirect material are not directly traced to product. Indirect material is indirect cost (factory overhead)

So above statement Indirect materials are any materials needed to make a product that can be directly traced to the product is False

2) Journalizing the entry to record a job completed would include a debit to

Debit finished goods; Credit work in process

So answer is a) Finished goods

3) The direct labor and overhead costs of providing services to clients are accumulated in

These costs are accumulated in Work in process

So answer is a) Work in process

4) The journal entry to record the transfer of 1,040 units of part number 1177 with a value of $1.20 each, to work in process is

so answer is d)

Work in Process	1,248
Materials		1,248