Question

In: Accounting

1.A materials requisition in a job-order cost system is used as a a) A source document...

1.A materials requisition in a job-order cost system is used as a

a) A source document for assigning costs to individual departments.

b)A subsidiary account for recording the materials used on each job.

c)Request form for getting the necessary materials from the materials store room.

d)A means of ordering materials from outside suppliers.

2.in a job-order cost system, the subsidiary accounts for the Work in Process Inventory account are the:

a)Standard cost cards.

b)Job cost sheets.

c)Individual accounts payable accounts.

d)Cost of production report.

3.An example of a product or service that would most likely be accounted for using a process cost system would be:

a)Vitamin manufacturer.

b)Printing services.

c)Manufacturer of motor homes.

d)auto repair services.

4)A process cost system would be appropriate for all of the following except:

a)Production of gasoline.

b)Manufacture of smart phones.

c)Services provided by public accounting firm.

d)Manufacture of granola bars.

5)In which of the following industries would a job-order cost system most likely be used?

a)Oil refinery

b)Small appliances manufacturer

c)Construction of cell towers

d)Beverage manufacturer

Solutions

Expert Solution

1.Correct answer is Option 'C' A materials requisition in a job-order cost system is used as Request form for getting the necessary materials from the materials store room.
Material Requisition note is a formal request for the supply of specified materials to production department for specified job or order.It authorizes the issuing department to draw the requisitioned material from the stores.

2.Correct answer is Option 'b' - .In a job-order cost system, the subsidiary accounts for the Work in Process Inventory account are the:Job cost sheets.

Job Cost Sheet is presentation which provides information for cost at different stages in form of prime cost , factory cost , cost of production & cost of sales. The accounting department is resposible to record all manufacturing cost in job sheet, there for subsidiary Work in progress inventory accounts shall maintain in Job Sheet.

3. Correect answer is Option 'A' Vitamin manufacturer would most likely be accounted for using a process cost system.

The process costing method is appropriate where goods or servies result from a sequence of continuius or repetitive operations or processes.

4. Option C is Correct answer : A process cost system would be appropriate for all of the following except Services provided by public accounting firm.

The process costing method is appropriate where goods or servies result from a sequence of continuius or repetitive operations or processes.Services provided by public accounting firm.their is no sequence of continuius or repetitive operations or processes.

Therefor A process cost system would be appropriate for all of the following except Services provided by public accounting firm.

5. Option 'c' is correct answer Construction of cell towers would most likely to use job or order cost system.
Job Costing is form of specific order costing which applies where works in undertaken to customer specific requirements.

ekkarill92 answered 1 year ago

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