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1. Ringgold Company experienced an event that affected its financial statements

ID: 2474633 • Letter: 1

Question

1. Ringgold Company experienced an event that affected its financial statements as indicated below:

Which of the following accounting events caused the indicated effects on the company's accounting equation?

A. Estimated overhead was charged to production

B. None of these.

C. Actual overhead cost was incurred

D. Underapplied overhead was written off

2. O'Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2014, O'Hare used $1,200 of direct raw materials for job #132. The recognition of this event would reflect an increase in which of the following accounts?

A. Finished goods inventory

B. Raw materials inventory

C. Work in process inventory

C. Cost of goods sold

3. O'Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2014, O'Hare used $1,200 of direct raw materials for job #132. The recognition of this event would reflect an increase in which of the following accounts?

A. Finished goods inventory

B. Raw materials inventory

C. Work in process inventory

D. Cost of goods sold

Explanation / Answer

Answer 1: A is correct - Estimated overhead was charged to production

Answer 2: C is correct - Work in process inventory

Answer 3: C is correct - Work in process inventory