QUESTION 20

1. Select the incorrect statement regarding cost flows through a process cost system.

   	a.	The process cost system is patterned after the physical flow of products as they move through the production process.
   	b.	The three inventory accounts used are maintained on a perpetual basis.
   	c.	Product costs are accumulated separately by job.
   	d.	A separate work in process account is maintained for each department or process.

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QUESTION 21

1. All of the following transactions lead to an entry on the job cost sheet except

   	a.	a materials requisition for material used on a job.
   	b.	indirect material used on the job.
   	c.	work ticket for labor incurred on the job.
   	d.	application of estimated overhead to the job.

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QUESTION 22

1. Which event results in the transfer of product costs from the balance sheet to the income statement?

   	a.	Sale of goods
   	b.	Delivery of goods
   	c.	Production of goods
   	d.	Application of estimated manufacturing overhead to job