Question

Select each of the items with the best-numbered description of its purpose.

Description Item
1 Notifies the materials manager to send materials to a production department. ____________________
2 Holds costs of indirect materials, indirect labor, and similar costs until assigned to production. ____________________
3 Holds costs of direct materials, direct labor, and applied overhead until products are transferred from production to finished goods (or another department). ____________________
4 Standardizes partially completed units into equivalent completed units. ____________________
5 Holds costs of finished products until sold to customers. ____________________
6 Describes the activity and output of a production department for a period. ____________________
7 Holds costs of materials until they are used in production or as factor overhead. ____________________
Choose one of these answers:
A- Equivalent units of production.
B- Factory overhead account.
C- Finished goods inventory account.
D- Materials requisition.
E- Process cost summary.
F- Raw materials inventory account.
G- Work in the process inventory account.

Answer 1

1. D

2. B

3. G

4. A

5. C

6. E

7. F

Step-by-step explanation:

1. Notifies the materials manager to send materials to a production department: Materials requisition.

2. Holds costs of indirect materials, indirect labor, and similar costs until assigned to production: Factory overhead account.

3. Holds costs of direct materials, direct labor, and applied overhead until products are transferred from production to finished goods (or another department): Work in the process inventory account.

4. Standardizes partially completed units into equivalent completed units: Equivalent units of production.

5. Holds costs of finished products until sold to customers: Finished goods inventory account.

6. Describes the activity and output of a production department for a period: Process cost summary.

7. Holds costs of materials until they are used in production or as factor overhead: Raw materials inventory account.