All of the Following Transactions Lead to an Entry on the Job

question 43

Multiple Choice

All of the following transactions lead to an entry on the job cost sheet except:

• A) Indirect material used on the job.
• B) A materials requisition for material used on a job.
• C) Work ticket for direct labor incurred on the job.
• D) Application of estimated overhead to the job.

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Definitions:

Consolidated Cost

The combined cost of an asset that includes the purchase price and all costs necessary to prepare the asset for its intended use, within a group of consolidated companies.

Cost Method

An accounting method used for investments, where the investment is recorded at cost and adjusted only for dividends received.

Consolidated Financial Statements

Financial reports that aggregate the financial position, results of operations, and cash flows of a parent company and its subsidiaries.

Elimination Entry

An accounting entry made in preparing consolidated financial statements to remove the effects of intercompany transactions.