9.

Unrecoverable past costs are always irrelevant in evaluating future business decision alternatives.

True

False

10.

The manufacturing operation most likely to use job-order costing rather than process costing is:

cereal manufacturing.

candy manufacturing.

crude oil refining.

office building construction.

11.

In a manufacturing company the proper journal entry (without numbers) to record the purchase of direct materials would be:

Option A

Finished Goods Inventory

xx

Raw Materials Inventory

xx

Option B

Raw Materials Inventory

xx

Work in Process Inventory

xx

Option C

Work in Process Inventory

xx

Raw Materials Inventory

xx

Option D

Raw Materials Inventory

xx

Finished Goods Inventory

xx

Option A

Option B

Option C

Option D

None of these

12.

In a job order cost system, work-in-process inventory is debited when

actual manufacturing overhead is incurred.

raw materials are purchased.

direct labor costs are incurred.

actual manufacturing overhead and direct labor costs are incurred.

all of the these.

13.

In a job-order cost system, direct materials requisitioned and introduced into production are recorded with a debit to

Manufacturing Overhead.

Finished Goods Inventory.

Direct Labor Expense.

Work-in-Process Inventory.

none of these.