The use of raw materials in production is:
An asset source transaction.
An asset use transaction.
An asset exchange transaction.
A claims exchange transaction.
Which of the following accounts is reported on the balance sheet?
Raw materials inventory.
Work in process inventory.
Finished goods inventory.
All of these.
At the time indirect materials are issued to production:
The balance in the manufacturing overhead account will decrease.
The balance in the work in process inventory account will increase.
The balance in the raw materials inventory account will increase.
The balance in the manufacturing overhead account will increase.
In a job-order cost system, the subsidiary accounts for the work in process account are the:
Standard cost cards.
Job cost sheets.
Individual accounts payable accounts.
Cost of production report.
Which event results in the transfer of product costs from the balance sheet to the income statement?
Purchase of materials
Sale of goods
Production of goods
Application of estimated manufacturing overhead to job
The entry to record the completion of a job in a job costing system would cause:
An increase to the cost of goods manufactured account.
An increase in net income.
An increase to the cost of goods sold account.
A decrease to the work in process inventory account.
Which of the following is incorrect regarding a job-order cost system?
Unit cost is determined for each product or job.
Source documents are used to assign costs to the subsidiary accounts.
Costs are accumulated for homogenous products that are produced through a continuous process.
Costs may be accumulated for a batch of work that contains many units of a product.