50+ Cost Control Accounts MCQ’s | Cost Accounting (Free Resource)

31. The Finished Goods account contains the cost of all units
(a) Unfinished at a given point in time
(b) Completed at a given point in time
(c) Produced during a particular period
(d) Produced and sold during a particular period

32. The work in process account is credited when
(a) Production of product is completed
(b) Products are sold to customers
(c) Completed goods are shipped to buyers
(d) Costs of production are incurred

33. Which account balances will decrease as a result of completing products during the month?
(a) Only work-in-process inventory
(b) Only finished goods inventory
(c) Both work-in-process and finished goods ending balances will decrease
(d) Neither account ending balance would increase; both would increase

34. T Company completed two jobs whose costs total to Rs 1,20,000. Which one of the following is one effect of this transaction?
(a) Manufacturing Overhead increases by Rs 1,20,000
(b) Cost of Goods Sold increases by Rs 1,20,000
(c) Work in Process decreases by Rs 1,20,000
(d) Finished Goods decreases by Rs 1,20,000

35. N Corporation incurred Rs 8,000 indirect labour and Rs 42,000 direct labour. Which one of the following is one effect of recording this transaction?
(a) Indirect labour increases by Rs 8,000
(b) Work in process increases by Rs 50,000
(c) Manufacturing costs increase by Rs 42,000
(d) Manufacturing overhead increases by Rs 8,000

36. The balance of the Work in Process account is equal to
(a) The total costs of the jobs completed
(b) The total costs of the jobs completed and sold
(c) The total manufacturing costs incurred during the period
(d) The total costs of the incomplete jobs

37. What entry should be made when a job is completed?
(a) A debit to Finished Goods Inventory, and a credit to Work in Process Inventory
(b) A debit to Work in Process Inventory, and a credit to Direct Materials, Direct Labour and Manufacturing Overhead
(c) A debit to Finished Goods Inventory and a credit to Direct Materials, Direct Labour, and Manufacturing Overhead
(d) A debit to Cost of Goods Sold Inventory, and a credit to Work in Process Inventory

38. When indirect materials are requisitioned the _______ account is increased.
(a) Manufacturing Overhead Control
(b) Work-in-Process Control
(c) Materials Control
(d) Accounts Payable Control

39. The Manufacturing Overhead Control account
(a) is increased by allocated manufacturing overhead
(b) is credited with amounts transferred to Work-in-Process
(c) is decreased by allocated manufacturing overhead
(d) is debited with actual overhead costs

40. A company’s accounting system operates so that the cost accounts are independent of thefinancial accounts. The two sets of accounts are reconciled on a regular basis to keep themcontinuously in agreement. This type of accounting system is known as
(a) Independent accounts
(b) Interlocking accounts
(c) Reconciled accounts
(d) Integrated accounts

Answer: 31)Completed at a given point in time 32)Production of product is completed 33)Only work-in-process inventory 34)Work in Process decreases by Rs 1,20,000 35)Manufacturing overhead increases by Rs 8,000 36)The total costs of the incomplete jobs 37)A debit to Finished Goods Inventory, and a credit to Work in Process Inventor 38)Manufacturing Overhead Control 39)is debited with actual overhead costs 40)Interlocking accounts