Question $36($Mandatory$)(1$ point$)$

Palmer Company has three divisions. The company should consider a cost to be a direct cost if

Question $36$ options:

a$)$

it meets guidelines imposed by generally accepted accounting principles.

b$)$

it can be allocated to a division.

c$)$

it is a variable cost.

d$)$

it can be traced to a division in a cost$-$effective manner.

Question $37($Mandatory$)(1$ point$)$

Which event results in the transfer of product costs from the balance sheet to the income statement?

Question $37$ options:

a$)$

Sale of goods

b$)$

Delivery of goods

c$)$

Production of goods

d$)$

Application of estimated manufacturing overhead to job

Question $38($Mandatory$)(1$ point$)$

Indirect material

Question $38$ options:

a$)$

may be accounted for using a periodic method.

b$)$

is a product cost.

c$)$

all of these

d$)$

is an overhead cost.

Question $39($Mandatory$)(1$ point$)$

All of the following transactions lead to an entry on the job cost sheet except

Question $39$ options:

a$)$

indirect material used on the job.

b$)$

work ticket for labor incurred on the job.

c$)$

application of estimated overhead to the job.

d$)$

a materials requisition for material used on a job.

Question $40($Mandatory$)(1$ point$)$

Gaynor Company had $800$ units of product in its work in process inventory at the beginning of the period. During the period $3,000$ additional units of product were started.

At the end of the period there were $1,500$ units of product in the Work in Process account. The ending work in process inventory was estimated to be $30\%$ complete.

The beginning work in process inventory had a cost of $$2,000.$ There were $$42,000$ of product costs added to work in process during the period. The number of equivalent units in ending work in process is

Question $40$ options:

a$)$

$1,500.$

b$)$

$450.$

c$)$

$1,945.$

d$)$

$2,300.$