The journal entry to assign $1,500 of direct labor and $200 of indirect labor for the current period involves a debit to what account(s)?

The journal entry to assign $1,500 of direct labor and $200 of indirect labor for the current period involves a debit to what account(s)?

A) manufacturing overhead for $1,700
B) work in process inventory for $1,500 and a credit to manufacturing overhead for $200
C) work in process inventory for $1,500 and a debit to manufacturing overhead for $200
D) work in process inventory for $1,700


Answer: C

How is the predetermined manufacturing overhead rate used to allocate manufacturing overhead calculated?

A) by dividing the total estimated manufacturing overhead costs by the total estimated quantity of allocation base
B) by dividing the total estimated quantity of allocation base by the total estimated manufacturing overhead costs
C) by multiplying the total estimated manufacturing overhead costs by the total estimated quantity of allocation base
D) by dividing the total estimated manufacturing overhead costs by the total actual quantity of the allocation base


Answer: A

Which of the following is the most significant cost for a service company which used job order costing?

A) labor costs
B) indirect costs
C) supplies costs
D) overhead costs


Answer: A

The entry to transfer direct labor and indirect labor costs from manufacturing wages into production includes a debit to which of the following?

The entry to transfer direct labor and indirect labor costs from manufacturing wages into production includes a debit to which of the following?

A) manufacturing overhead and work in process inventory
B) finished goods inventory
C) manufacturing overhead
D) finished goods inventory and work in process inventory


Answer: A

The __________ is a document prepared by manufacturing personnel to request materials for the production process.

A) cost ticket
B) manufacturing ticket
C) job order card
D) materials requisition


Answer: D

In job costing, indirect materials used in production are credited to which of the following?

A) finished goods inventory
B) materials inventory
C) manufacturing overhead
D) work in process inventory


Answer: B

In a job-order costing system, direct labor cost is ordinarily debited to:

In a job-order costing system, direct labor cost is ordinarily debited to:

A. Manufacturing Overhead.
B. Cost of Goods Sold.
C. Finished Goods.
D. Work in Process.


Answer: D

In a job-order costing system, the use of direct materials that have been previously purchased is recorded as a debit to:

A. Raw Materials inventory.
B. Work in Process inventory.
C. Finished Goods inventory.
D. Manufacturing Overhead.


Answer: B

Which of the following accounts is debited when direct labor is recorded?

A. Work in process
B. Salaries and wages expense
C. Salaries and wages payable
D. Manufacturing overhead


Answer: A

If the auditors encounter a significant scope limitation in evaluating a public company`s internal control over financial reporting

If the auditors encounter a significant scope limitation in evaluating a public company`s internal control over financial reporting, which of the following types of opinions on the effectiveness of the company`s internal control over financial reporting would be appropriate?

a. qualified opinion or adverse opinion
b. unqualified opinion or adverse
c. unqualified opinion or disclaimer of opinion
d. disclaimer of opinion


Answer: d. disclaimer of opinion

What document is used to determine the actual amount of direct labor to record on a job cost sheet?

A. Time ticket
B. Payroll register
C. Production order
D. Wages payable account


Answer: A

Which of the following statements is not true with respect to the auditor's report on internal control over financial reporting?

a. the report may be presented with the report on the entity's financial statements as a combined report
b. the auditor will issue an adverse opinion if one or more material weaknesses exist
c. the report will be dated as of the date of the financial statements
d. the report will express an opinion on the effectiveness of internal control over financial reporting


Answer: c. the report will be dated as of the date of the financial statements