50+ Cost Control Accounts MCQ’s | Cost Accounting (Free Resource)
21. The application of factory overheads usually would be recorded as an increase in
(a) Cost of goods sold
(b) Work-in-progress control
(c) Factory overheads control
(d) Finished goods control
22. The debit balance of the overheads adjustment account may be transferred to
(a) Cost of sales account
(b) Profit and loss account
(c) Finished goods account
(d) Work-in-progress account
23. Materials lost in stores due to fire is
(a) a part of normal loss and hence part of cost
(b) capitalized
(c) a part of abnormal loss and hence excluded from cost
(d) transferred to the next period
24. A credit to Work in Process Inventory represents
(a) work still in process
(b) raw material put into production
(c) the application of overhead to production
(d) the transfer of completed items to Finished Goods Inventory
25. A journal entry includes a debit to Work in Process Inventory and a credit to Raw Material Inventory. The explanation for this would be that
(a) indirect material was placed into production
(b) raw material was purchased on account
(c) direct material was placed into production
(d) direct labour was used for production
26. The journal entry to apply overhead to production includes a credit to Manufacturing Overhead control and a debit to
(a) Finished Goods Inventory
(b) Work in Process Inventory
(c) Cost of Goods Sold
(d) Raw Material Inventory
27. The use of indirect material would usually be reflected as an increase in
(a) Stores control
(b) Work in process control
(c) Manufacturing overhead applied
(d) Manufacturing overhead control
28. A credit to the Manufacturing overhead control account represents the
(a) actual cost of overhead incurred
(b) actual cost of overhead paid this period
(c) amount of overhead applied to production
(d) amount of indirect material and labour used during the period
29. When employees assemble products
(a) Cost of goods manufactured decreases
(b) Work in process inventory increases
(c) Work in process inventory decreases
(d) Manufacturing overhead decreases
30. W Corporation’s production department used Rs 64,000 of materials to manufacture products during May. Which one of the following is one effect of recording this transaction?
(a) Raw materials increases by Rs 64,000
(b) Manufacturing overhead increases by Rs 64,000
(c) Cost of goods sold increases by Rs 64,000
(d) Work in process increases by Rs 64,000
| Answer: 21)Work-in-progress control 22)Profit and loss account 23)a part of abnormal loss and hence excluded from cost 24)the transfer of completed items to Finished Goods Inventory 25)direct material was placed into production 26)Work in Process Inventory 27)Manufacturing overhead control 28)amount of overhead applied to production 29)Work in process inventory increases 30)Work in process increases by Rs 64,000 |
