At the End of Each Month, a Company Must Total

question 78

Multiple Choice

At the end of each month, a company must total up the costs shown on the job cost sheets.What amount should this equal?

• A)the total of the Work in Process Inventory account in the general ledger
• B)the total of the Job Cost Expense account in the general ledger
• C)the cost of all job costs incurred during the year
• D)the total cost of manufacturing overhead applied during the year

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Definitions:

Trade-In Allowance

The value subtracted from the price of a new item when an old item is given as part of the deal.

Book Value

The net value of an asset or company calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

Accumulated Depreciation

The total amount of depreciation expense that has been charged to a fixed asset since it was in service, reducing its book value.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting the loss of value over time.