Multiple Choice Questions
1. When a job is completed, the total cost of the job is
a. Subtracted from the raw materials account.
b. Added to the work-in-process account.
c. Added to the finished goods account.
d. Added to the accounts payable account.
e. Subtracted from the cost of goods sold account.
2. The costs of a job are accounted for on the
a. Materials requisition sheet.
b. Time ticket.
c. Requisition for overhead application.
d. Sales invoice.
e. Job-order cost sheet.
3. When a job costing $2,000 is finished but not sold, the following journal entry is made:

4. Those departments responsible for creating products or services that are sold to customers are referred to as
a. Profit making departments.
b. Production departments.
c. Cost centers.
d. support departments.
e. None of these.
5. Those departments that provide essential services to producing departments are referred to as
a. Revenue generating departments.
b. Support departments.
c. Profit centers.
d. Production departments.
e. None of these.
6. An example of a producing department is
a. A materials storeroom.
b. The maintenance department.
c. Engineering design.
d. Assembly.
e. All of these.
7. An example of a support department is
a. Data processing.
b. Personnel.
c. A materials storeroom.
d. Payroll.
e. All of these.
8. The method that assigns support department costs only to producing departments in proportion to each department€™s usage of the service is known as
a. The sequential method.
b. The proportional method.
c. The reciprocal method.
d. The direct method.
e. None of these.
9. The method that assigns support department costs by giving partial recognition to support department interactions is known as
a. The sequential method.
b. The proportional method.
c. The reciprocal method.
d. The direct method.
e. None of these.
10. The method that assigns support department costs by giving full recognition to support department interactions is known as
a. The sequential method.
b. The proportional method.
c. The reciprocal method.
d. The direct method.
e. None of these.

Cost of Goods Sold Finished Goods Finished Goods Work in Process Cost of Goods Sold 2,000 2,000 2,000 2,000 2,000 a. Finished Goods Cost of Goods Sold Work in Process Finished Goods Sales 2,000 2,000 2,000 2,000 2,000 b. c. d. c.