22. The job cost sheet is used in both job-order and process costing. 23. Advert
ID: 2544636 • Letter: 2
Question
22. The job cost sheet is used in both job-order and process costing. 23. Advertising costs should be charged to manufacturing overhead account. 24. A balance in manufacturing overhead can be closed out to cost of goods sold when the False True True False amount is not material. True False Questions 25-27 are based on the following data: Young Enterprises has budgeted sales in units for the next five months as follows: June July August September October 4,600 units 7,200 units 5.400 units 6,800 units 3,800 units Past experience has shown that the ending inventory for each month must be equal to 10% of th next month's sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a Production Budget for the second quarter of the year 25. The opening inventory in units for September is: a. 380 units b. 6,800 units. c. 540 units. d. 680 units. 26. The total number of units to be produced in July is: a. 7.740 units. b. 7.200 units c. 7.020 units. d. 7,280 units. 27. The desired ending inventory for August is: a. 540 units. b. 680 units. c. 720 units. d. 380 unitsExplanation / Answer
22. False – The Job Cost sheet is used in Job Order Only
23. False - Advertising costs should not be charged to the manufacturing overhead account. It should be charged under the head Selling and administrative expenses
24. True – The balance in manufacturing overhead should be charged to COST OF GOODS SOLD
Inventory Table
Month
Opening
Sales
Closing
May
-
-
400
June
400
4600
720
July
720
7200
540
Aug
540
5400
680
Sep
680
6800
380
Oct
380
3800
-
25. opening Inventory for September = 680 Units
26. Units to be procuced in July = 7020 Units
Units produced = Closing units + Units Sold - Opening units
= 540 +7200 -720
= 7020 Units
27. Ending Inventory for August = 680 Units
Month
Opening
Sales
Closing
May
-
-
400
June
400
4600
720
July
720
7200
540
Aug
540
5400
680
Sep
680
6800
380
Oct
380
3800
-
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