Multiple Choice

1. Which of the following is not a control account showing inventory movement?

a. Materials

b. Payroll

c. Work In Process

d. Finished Goods

2. A department started 80,000 units and completed 50,000 units. Its ending work in process is 30,000 units, 40% incomplete. Equivalent finished units is equal to

a. 50,000 x 100% plus 30,000 x 40%.

b. 80,000.

c. 50,000 x 100% plus 30,000 x 60%.

d. 50,000.

3. In process costing, the computation of the unit cost requires

a. the accumulation of material and conversion costs in work in process for each

department or process.

b. the computation of equivalent units for material and conversion costs.

c. the computation of the finished and unfinished units.

d. both a and b

e. both a and c.

4. Which of the following is a control account showing the different types of salary and wage distribution?

a. Payroll

b. Time cards.

c. Time Tickets

d. Factory Overhead

5. Unit cost for materials, labor and overhead costs was determined to be $10. The

ending work in process of 8,000 units (60% complete) will be computed as follows:

a. $10 x (8,000 x100%).

b. $10 x (8,000 x 60%).

c. $10 x (8,000 x 40%).

d. $10 x (8,000 x 50%).

6. A form used when materials are issued by the storeroom and transferred to the factory

a. bill of material

b. purchase order

c. material requisition slip

d. material ledger card

7. Factory rent, indirect labor and indirect materials are placed in this control account

a. Factory Overhead

b. Work In Process

c. Applied Factory Overhead

d. Finished Goods

8. A form used to record the costs chargeable to a specific job and to

determine the total and unit cost of the completed job.

1. Material ledger card
2. Job Order Cost Sheet
3. Payroll Sheet
4. Time Ticket

9. To which control account do job cost sheets represent?

a. Cost of Goods Sold

b. Finished Goods Inventory

c. Cost of Goods Manufactured

d. Work in Process Inventory

10. Which one of the following appears on a job cost sheet?

a. The cost of all completed jobs

b. The total materials purchased during the year

c. Direct materials issued to a specific job

d. The total cost of goods sold

11. At what point in time are costs of raw materials transferred to Work in Process Inventory?

a. When the materials are issued to production

b. When the bill for the materials is paid

c. When the materials are ordered

d. When the materials are received