Chapter 4

Question 1

2. Nature of Output and Costing Methods:

Answer 1

1. Heterogeneous

2. Homogenous

Question 2

Documentation Used in Job
Costing: 
Material requisition forms:
• Direct materials goes to:
&
• Indirect materials:

Answer 2

Job cost card
&
Manufacturing Overhead

Question 3

The Flow of Costs
General Journal Entries when:
MATERIALS are purchased on credit:

Answer 3

Dr. Materials Control

Cr. Account Payable Control

Question 4

The Flow of Costs
General Journal Entries when:
When MATERIALS are issued (direct materials):

Answer 4

Dr. WIP Control

Cr. Materials Control

Question 5

The Flow of Costs
General Journal Entries when :
When MATERIALS are issued (indirect materials):

Answer 5

Dr. Manufacturing Overhead Control

Cr. Materials Control

Question 6

The Flow of Costs
General Journal Entries when:
LABOUR is incurred/paid (direct labour):

Answer 6

Dr. WIP Control

Cr. Wages Payable Control

Question 7

The Flow of Costs
General Journal Entries when:
LABOUR is incurred/paid (indirect labour):

Answer 7

Dr. Manufacturing Overhead Control

Cr. Wages Payable Control

Question 8

The Flow of Costs
General Journal Entries when:
MOH allocated (when you incur labour cost and use material for production you must immediately recognized the overhead you allocate):

Answer 8

Dr. WIP Control

Cr. Manufacturing Overhead Allocated

Question 9

The Flow of Costs
General Journal Entries when:
GOODS are manufactured (become finished goods):

Answer 9

Dr. Finished Goods Control

Cr. WIP Control

Question 10

The Flow of Costs
General Journal Entries when:
Finished Goods are SOLD:

Answer 10

Dr. Cost of Goods Sold Control

Cr. Finished Goods Control