1. In job order cost accounting system, entry to record flow of direct materials into production is:

a. Debit Work in Process, credit Materials

b. Debit Factory Overhead, credit Materials

c. Debit Work in Process, credit Supplies

d. Debit Materials, credit Work in Process

2. Which of the given is false in regards to direct materials for auto manufacturer?

a. Small plastic clips to hold on door panels, as they become part of the auto, should be accounted for as direct materials.

b. Steel would probably be direct material.

c. Upholstery fabric would probably be a direct material.

d. Oil to lubricate factory machines would not be direct material.

3. Department W had 2,400 units, one-third completed at the starting of period, 12,000 units were transferred to Department X from Department W during period, and 1,800 units were one-half completed at the ending of period. Determine total number of units to be allocated cost on cost of production report for Department W?

a. 13,800 units

b. 12,700 units

c. 13,600 units

d. 12,000 units

4. Which of the given is not characteristic of job order costing system?

a. It is best suited for industries which manufactures custom goods.

b. Uses only one work in process account.

c. It accumulates cost for each department within the factory.

d. It gives a separate record for cost of each quantity of product which passes through factory.

5. The following are true regarding product costs except

a. Product costs comprises of direct labor, direct materials, and factory overhead.

b. Product costs are found on balance sheet until they are sold.

c. Product costs include sales and administrative expenses.

d. Product costs can be found in three accounts in balance sheet.