ACCT chapter 10 21-30

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the materials account to

B. work in process and factory overhead.

Which of the following is NOT true about why a service firm will use the job order costing system?

C. To determine department costs within the firm

Increases in the Work in Process account occur when

C. direct labor is recorded from the time sheets.

Recording direct labor costs in a job order cost accounting system

C. increases Work in Process, increases Wages Payable.

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a

C. receiving report.

The amount of time spent by each employee and the labor cost incurred for each individual job or for factory overhead are recorded on

C. time tickets.

At the end of the fiscal year, the balance in Factory Overhead is small. This balance would normally be

B. transferred to Cost of Goods Sold.

Job order costing and process costing are

B. cost accounting systems.

The basis for recording direct and indirect labor costs incurred is a summary of the period's

B. time tickets

In a job order cost accounting system, the effect of the flow of direct materials into production is to

A. increase Work in Process, decrease Materials Inventory.