The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves a debit to what account(s)?

The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves a debit to what account(s)?

A) work in process inventory for $500 and a debit to manufacturing overhead for $30
B) work in process inventory for $500 and a credit to manufacturing overhead for $30
C) manufacturing overhead for $530
D) work in process inventory for $530


Answer: A

Direct materials flow directly into what account?

A) cost of goods sold
B) finished goods inventory
C) manufacturing overhead
D) work in process inventory


Answer: D

Allocation of direct and indirect materials requires a credit to what account?

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


Answer: A

What type of costing system would a manufacturer of plywood use?

What type of costing system would a manufacturer of plywood use?

A) job costing
B) process costing
C) either job costing or process costing
D) both job costing and process costing


Answer: B

Which of the following companies is most likely to use job costing?

A) Exxon Mobil Oil Refinery
B) Elizabeth's Custom Furniture Company
C) DuPont Chemical Company
D) Kellogg's Cereal Company


Answer: B

________ is assigning costs such as direct materials and direct labor to products.

A) Cost assigning
B) Cost tracing
C) Cost allocation
D) None of the these


Answer: B