Multiple choice questions on job-order costing and process costing.
1. The job cost sheet:
a. is useful only in process costing.
b. contains only direct costs such as direct materials and direct labor
c. summarizes all costs charged to a particular job
d. is discarded after production is completed on a particular job
2. In a job-order costing system, the application of manufacturing overhead would be recorded as a debit to:
a. Finished Goods inventory.
b. Cost of Goods Sold
c. Raw Materials inventory
d. Work in Process inventory
3. A good description of "cost of goods manufactured" is the recorded cost of the:
a. units completed during the period.
b. work done on all units during the period.
c. work done this period on units completed this period.
d. units started and completed during the period.
4. Which of the following statements related to job-order costing and process costing are true?
a. Under both costing methods, manufacturing overhead costs are included in the computation of unit product costs.
b. Under both costing methods, the journal entry to record the completion of production will involve crediting a work in process account.
c. Under both costing methods, the journal entry to record the cost of goods sold will involve crediting the finished goods account.
d. All of the above are true.
5. In the computation of costs per equivalent unit, the weighted-average method of process costing considers:
a. costs incurred during the current period plus cost of beginning work in process inventory.
b. costs incurred during the current period less cost of beginning work in process inventory.
c. costs incurred during the current period plus cost of ending work in process inventory.
d. costs incurred during the current period only.