#7

6. In a job order cost system, the use (requisitioning) of direct materials would be recorded as a debit to A) Manufacturing Overhead B) Raw Materials C) Finished Goods D) Work in Process 7. Big Red Company manufactures shirts and uses a job-order costing system During May, the following costs were incurred on Job PS4: direct materials $27,400 and direct labor $9,600. In addition, selling and shipping costs of $14,000 were incurred by Big Red Company. MOH was applied at the rate of $25 per machine-hour and Job PS4 required 160 machine-hours. If Job PS4 consisted of 5,000 shirts, the unit product cost that will appear on the job cost sheet is: A) $ 7.40 B) $11.00 C) S 8.20 D) $25.00 8. In a job-order cost system, indirect labor costs incurred would be recorded as a debit to the: A) Manufacturing Overhead B) Raw Materials C) Finished Goods D) Work in Process