Practice Test

Q1) Four sets of books are maintained under Non Integral system Show Answer

Q2) Under Non Integrated system cost A/c and financial A/c are maintained separately. Show Answer

Q3) Non Integrated system is also known as Inter locking A/c system Show Answer

Q4) In cost accounts all personal accounts are maintained. Show Answer

Q5) Store ledger contains wages paid. Show Answer

Q6) WIP ledger shows cost of goods unfinished. Show Answer

Q7) Finished Goods ledger shows cost of finished goods. Show Answer

Q8) Control Accounts provided a basic for reconciliation. Show Answer

Q9) Abnormal loss is credit to costing Profit & Loss A/c Show Answer

Q10) Direct Wages are debited to wages control A/c. Show Answer

Q11) Cost of Goods remaining unsold is shown by finished Goods ledger control A/c. Show Answer

Q12) Costing Profit & Loss A/c shows Financial Profit & Loss. Show Answer

Q13) Under Non integrated system the number of set of accounts books maintained is Show Answer

Q14) Under non-integrated system Show Answer

Q15) Non-integrated system of accounting is also known Show Answer

Q16) In cost accounts Show Answer

Q17) Under non-integrated system Show Answer

Q18) Cost Ledger contains Show Answer

Q19) Cost Ledger contains Show Answer

Q20) Stores ledger contains a separate account of Show Answer

Q21) WIP ledger balance shows Show Answer

Q22) Finished goods ledger contains an accounts for Show Answer

Q23) Control Accounts provide a basis Show Answer

Q24) Issue of material is credited to Show Answer

Q25) Abnormal Loss is Show Answer

Q26) Wages control A/c is debited by Show Answer

Q27) Factory overhead control is Show Answer

Q28) The balance on Factory overhead control A/c represents Show Answer

Q29) The balance on Factory overheads control A/c transferred to Show Answer

Q30) The balance on Finished Goods Ledger control A/c represents Show Answer

Q31) The balance on cost of sales A/c is transferred to Show Answer

Q32) Overheads Adjustment A/c is debited by Show Answer

Q33) The balance on costing Profit & Loss A/c Show Answer

Q34) A concern has a non-integrated costing system. Salaries and wages analysis book indicates the following breakup:
Direct wages `38,600
Indirect factory wages `9,500
Administrative salaries `9,700
Selling and distribution salaries `4,300
Which of the following statements is false-
(i) No additional entry is passed in financial books for break-up.
(ii) Work-in-progress Ledger Control A/c will be debited with `38,600.
(iii) Salaries and Wages Control A/c will be debited with `62,100.
Show Answer

Q35) What is an interlocking bookkeeping system? Show Answer

Q36) The following documents are used in accounting for raw materials:
(i) Goods received note
(ii) Materials returned note
(iii) Materials requisition note
(iv) Delivery note
Which of the documents may be used to record raw materials sent back to stores from production?
Show Answer

Q37) When production has been completed what double-entry would be made in a cost accounting system?
Debit Credit
(a) Cost of Sales Finished Goods
(b) Finished Goods Work-in-Progress
(c) Finished Goods Cost of Sales
(d) Work-in-Progress Finished Goods

Show Answer

Q38) The raw materials issued to a job were overestimated and the excess is being sent back to the materials store. What document is required? Show Answer

Q39) When goods are sold, what double entry would be made to record the transfer of costs?
Debit Credit
(a) Finished Goods A/c Cost of Sales A/c
(b) Sales A/c Cost of Sales A/c
(c) Cost of Sales A/c Sales A/c
(d) Cost of Sales A/c Finished Goods A/c

Show Answer

Q40) The stores ledger control account for a period contained the following summary information:
`’000
Supplier deliveries into stores 321
Indirect materials issued from stores 13
Returns to suppliers 8
Opening inventory in stores 46
Closing inventory in stores 59
There were no inventory discrepancies in the period.
What accounting entry correctly records the issue of direct materials from stores?
Debit ` Credit `
(a) Stores Ledger A/c 2,87,000 Work-in-Progress A/c 2,87,000
(b) Work-in-Progress 2,87,000 Stores Ledger A/c 2,87,000
(c) Stores Ledger A/c 3,13,000 Work-in-Progress A/c 3,13,000
(d) Work-in-Progress 3,13,000 Stores Ledger A/c 3,13,000

Show Answer

Q41) What is a cost ledger control A/c? Show Answer

Q42) The advantages of maintaining cost control accounts include the following: Show Answer

Q43) The Work-in-Progress Control Account is not debited with: Show Answer

Q44) The application of factory overheads usually would be recorded as an increase in Show Answer

Q45) Loss of stores (normal) is recorded in cost accounts as
Stores Ledger Production Overheads Costing P/L A/c
(a) Debit Credit Nothing
(b) Credit Debit Nothing
(c) Nothing Debit Credit
(d) Credit Nothing Debit

Show Answer

Q46) In a typical cost ledger, the double entry for indirect labour charges incurred during a period is
Debit Credit
(a) Wages Control A/c Overheads Control A/c
(b) WIP control A/c Wages control A/c
(c) Overheads control A/c Wages control A/c
(d) Wages control A/c WIP control A/c

Show Answer

Q47) In the cost ledger, the double entry for factory cost of finished production for a period is
Debit Credit
(a) Cost of Sales A/c Fin. Goods Control A/c
(b) Fin. Goods Control A/c WIP control A/c
(c) Costing Profit & Loss A/c Fin. Goods Control A/c
(d) WIP control A/c Fin. Goods Control A/c

Show Answer

Q48) The debit balance of the overheads adjustment account may be transferred to Show Answer

Q49) Materials lost in stores due to fire is Show Answer

Q50) A credit to Work in Process Inventory represents Show Answer

Q51) 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 Show Answer

Q52) The journal entry to apply overhead to production includes a credit to Manufacturing Overhead control and a debit to Show Answer

Q53) The use of indirect material would usually be reflected as an increase in Show Answer

Q54) A credit to the Manufacturing overhead control account represents the Show Answer

Q55) When employees assemble products Show Answer

Q56) W. Corporation’s production department used `64,000 of materials to manufacture products during May. Which one of the following is one effect of recording this transaction? Show Answer

Q57) The Finished Goods account contains the cost of all units Show Answer

Q58) The work in process account is credited when Show Answer

Q59) Which account balances will decrease as a result of completing products during the month? Show Answer

Q60) T company completed two jobs whose costs total to `1,20,000. Which one of the following is one effect of this transaction? Show Answer

Q61) N Corporation incurred `8,000 indirect labour and `42,000 direct labour. Which one of the following is one effect of recording this transaction? Show Answer

Q62) The balance of the Work in process account is equal to Show Answer

Q63) What entry should be made when a job is completed? Show Answer

Q64) When indirect materials are requisitioned the _____ account is increased. Show Answer

Q65) The Manufacturing Overhead Control Account Show Answer

Q66) A company’s accounting system operates so that the cost accounts are independent of the financial accounts. The two sets of accounts are reconciled on a regular basis to keep them continuously in agreement. This type of accounting system is known as Show Answer

Q67) In May, material requisitions were `44,000 (`39,000 of these were direct materials), and raw material purchases were `57,700. The end of month balance in raw materials inventory a/c was `24,300. What was the beginning raw materials inventory a/c balance? Show Answer

Q68) Overallocated manufacturing overhead results when Show Answer

Q69) Determining how much manufacturing overhead is overallocated or underallocated Show Answer

Q70) The journal entry to record the use of direct materials on jobs is to debit work in process inventory and credit Show Answer

Q71) Cost of goods sold is debited and finished goods inventory is credited for Show Answer

Q72) Under which of the following situations is finished goods inventory debited and work in process inventory credited? Show Answer

Q73) Under which of the following situations is raw materials inventory credited and work in process inventory debited? Show Answer

Q74) The cost of direct materials used in production is debited to Show Answer

Q75) The cost of direct labour used in production is recorded as a Show Answer

Q76) The cost of indirect labour used in factory is recorded as a Show Answer

Q77) The journal entry needed to record the completion of a job includes a Show Answer

Q78) The journal entry needed to record the completion of a job includes a Show Answer

Q79) The journal entry to issue `600 of direct materials and `40 of indirect materials involves a debit to Show Answer

Q80) To record the costs of indirect labour, which of the following would be debited? Show Answer

Q81) To record direct labour costs incurred, which of the following would be debited? Show Answer

Q82) To record the requisition of direct materials, which of the following would be debited? Show Answer

Q83) The journal entry to record `300 of depreciation expense on factory equipment involves a Show Answer

Q84) Actual manufacturing overhead for the period is `20,000 while allocated manufacturing overhead is `18,000. What entry will close the manufacturing overhead balance? Show Answer

Q85) A company has overallocated manufacturing overhead by `1,500. The entry to close manufacturing overhead account would be to Show Answer

Q86) Manufacturing overhead has an underallocated balance of `6,200; raw materials inventory balance is `50,000; work in process inventory is `30,000; finished goods inventory is `20,000; and cost of goods sold is `1,00,000.
Which of these accounts would have a closing credit balance?
Show Answer

Q87) The entry to record cost of goods sold includes a credit to Show Answer

Q88) Non-integrated cost accounting system follows the principles of _____ entry. Show Answer

Q89) Factory Overhead control Account is credited with the amount of overhead _____. Show Answer

Q90) WIP control Account is _____ with the cost of finished goods. Show Answer

Q91) Administration Overhead recovered is debited to _____ Control Account. Show Answer

Q92) Selling Overhead recovered is credited to _____ A/c. Show Answer

Q93) Work-in-progress ledger contains accounts of individual jobs. Show Answer

Q94) Under-absorbed and over-absorbed overheads are transferred to overhead adjustment account. Show Answer

Q95) The Stores Ledger Control Account in the cost ledger shows the balance of total stores in hand as on a particular date. Show Answer

Q96) In cost control accounts, sales are credited to Cost Ledger Control Account. Show Answer

Q97) Stock ledger contains an account of each individual item of raw material. Show Answer

Q98) Cost Ledger Control Account is opened in the cost ledger. Show Answer

Q99) Work-in-Process Control will be deceased (credited) for the amount of direct-labour costs incurred. Show Answer

Q100) The ending balance in Work-in-Progress Control represents the total costs of all jobs that have not yet been completed. Show Answer

Q101) The overhead accounts are closed or become zero at the end of each year. Show Answer

Q102) When raw materials are transferred out of the storeroom to the factory, their cost is transferred out of raw materials inventory and into work in process inventory. Show Answer

Q103) The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocate during the year and the amount of overhead estimated for the year. Show Answer

Q104) The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocate during the year and the amount of overhead incurred during the year. Show Answer

Q105) The amount of overallocation or underallocation is typically corrected by adjusting cost of goods sold. Show Answer

Q106) The overallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement. Show Answer

Q107) When an item is sold, finished goods control is credited and cost of goods sold is debited. Show Answer

Q108) When indirect materials are requisitioned for a job, the raw materials inventory account is credited. Show Answer

Q109) When raw materials are requisitioned for a job, the raw material control is credited. Show Answer

Q110) The work in process account is debited for the cost of direct labour. Show Answer

Q111) The entry to allocate manufacturing overhead costs to work in process requires a debit to work in process. Show Answer

Q112) Finished goods control is debited when the product is sold. Show Answer

Q113) Raw Materials Inventory, Factory Labour, and Manufacturing Overhead are all control accounts in the general ledger when a non-integrated cost accounting system is used. Show Answer

Q114) The stores ledger cards are the subsidiary ledger for Raw Materials Inventory control account in general ledger. Show Answer

Q115) When raw materials are purchased, the Work in Process Control account is debited. Show Answer

Q116) Actual manufacturing overhead costs should be charged to the Work in Process Control account as they are incurred. Show Answer

Q117) Finished Goods Control is charged for the cost of jobs completed. during a period. Show Answer

Q118) When goods are sold, the Cost of Goods Sold account is debited and the Work in Process Control account is credited. Show Answer