If the Opening Balance of Equity Is $45,000, the Closing

question 29

Multiple Choice

If the opening balance of equity is $45,000, the closing balance is $60,000 and profit is $27,000, calculate the amount of drawings which will appear as a financing outflow in the cash flow statement.

• A) nil
• B) $15,000
• C) $12,000
• D) $42,000

Identify the documents used in job order costing systems for recording direct labor and material costs.

Understand the treatment of factory overhead, including the concepts of applied, underapplied, and overapplied overhead.

Comprehend the role of perpetual inventory systems and the maintenance of controlling accounts and subsidiary ledgers in job order costing.

Learn the treatment of product costs as inventory on the balance sheet until the goods are sold.

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