Question

Understand only one can be asked, but I give a thumbs up for answering as many as you can.

The cost of good manufactured is credited to which of the following accounts?

A. cost of goods sold

B. Finished Goods

C. Work in Process

D. Raw Materials.

The cost of goods sold is credited to which of the following accounts?

A. Cost of goods manufactured

B. work in process

C. cost of goods sold

D. Finished goods

An Immaterial amount of under applied overhead is debited to which of the following accounts?

A. manufacturing overhead

B. cost of goods sold

C. work in process

D. finished goods

A material amount of over applied overhead is debited to which of the following accounts?

A. manufacturing overhand

B. work in process

C. finished Goods

D. Cost of goods sold

The reduction of inventories is an objective of:

A. total quality management

B. just in time production

C. activity based costing

D. computer controlled manufacturing systems

Answer 1

Answer to Question No.(1) Option(A) cost of goods sold

Reason:Cost of manufactured goods includes all kind of cost incurred for manufacturing the goods.The total cost of goods manufactured for the year is first computed, this value is then transferred/credited to calculate Cost of Goods Sold.

Answer to Question No.(2) Option(D) Finished goods

Reason: journal entry is debiting the cost of goods sold account and crediting your inventory account

Answer to Question No.(3) Option(B)Cost of goods sold

Reason:When the balance in the Manufacturing Overhead account is considered to be immaterial, it is adjusted to Cost of Goods Sold

Answer to Question No.(4) Option(A). Manufacturing overhend

Reason:When the balance in the Manufacturing Overhead account is considered to be material, it is allocated proportionally and adjusted to Cost of Goods Sold, Work in Process, and Finished Goods

Answer to Question No.(5) Option(B). Just in time production

Reason:The goal of JIT is to decrease costs by keeping only enough inventory on hand to meet immediate production needs.