Objective questions on job order costing and process costing


Question1: In a job-order costing system, the application of manufacturing overhead would be recorded as a debit to:

[A] Raw Materials inventory

[B] Work in Process inventory

[C] Finished Goods inventory

[D] Cost of Goods Sold

Question2: 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 ending work in process inventory

[B] Costs incurred during the current period only

[C] Costs incurred during the current period plus cost of beginning work in process inventory

[D] Costs incurred during the current period less cost of beginning work in process inventory

Question3: A good description of "cost of goods manufactured" is the recorded cost of the:

[A] work done this period on units completed this period

[B] units started and completed during the period

[C] units completed during the period

[D] work done on all units during the period

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Cost Accounting: Objective questions on job order costing and process costing
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