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1. The two basic types of cost accounting systems are Select one: a. job order a

ID: 2392103 • Letter: 1

Question

1.

The two basic types of cost accounting systems are

Select one:

a. job order and batch systems

b. job order and process cost systems

c. process cost and batch systems

d. job order and job accumulation systems

2.

Which one of the following is NOT an Inventory account?

Select one:

a. Work in Process

b. Raw Materials

c. Cost of Goods Sold

d. Finished Goods

3.

The entry to record the acquisition of raw materials on account is

Select one:

a. Manufacturing Overhead
            Raw Materials Inventory
                        Accounts Payable

b. Raw Materials Inventory
                        Accounts Payable

c. Work in Process Inventory
                        Accounts Payable

d. Accounts Payable
            Raw Materials Inventory

4.

The labor costs that have been identified as indirect labor should be charged to

Select one:

a. manufacturing overhead

b. salary expense

c. the individual jobs worked on

d. direct labor

5.

The predetermined overhead rate is

Select one:

a. determined at the beginning of the year

b. determined at the end of the year

c. determined on a moving average basis throughout the year

d. not calculated until actual overhead costs are incurred

Explanation / Answer

Solution 1:

The two basic types of cost accounting systems are job order and process cost systems.

Hence, option "b" is correct.

Solution 2:

Cost of goods sold is not an Invemtory account becase it is an expense account which indicates the cost of invemtory which has been sold.

Hence option "c" is correct.

Solution 3:

Entry to record the acquisition of raw materials on account is:

Raw Material Inventory Dr

   To Accounts Payable

hence option "b" is correct.

Solution 4:

Indirect labor cost should be charged to Manufacturing Overhead.

Hence option "a" is corret.

Solution 5:

The predetermined overhead cost is determined at the beginning of the year on the basis of estimated overhead cost.

Hence option "a" is correct.