c




1. ¬ a cost accou ti
system what would be the e try to record the completio of productio 
Debit Credit
A) Cost of Sales Accou t Fi ished Goods Accou t
B) Fi ished Goods Accou t Cost of Sales Accou t
C) Fi ished Goods Accou t Work-i -Pro
ress Accou t
D) Work-i -Pro
ress Accou t Fi ished Goods Accou t

2. ¬ a cost bookkeepi
system what would be the e try for the absorptio of productio overhead
Debit Credit
A) Cost Led
er Co trol Accou t Productio Overhead Accou t
B) Productio Overhead Accou t Work-i -Pro
ress Accou t
C) Work-i -Pro
ress Accou t Cost Led
er Co trol Accou t
D) Work-i -Pro
ress Accou t Productio Overhead Accou t

3. Which of the followi
is a feature of a i terlocki
bookkeepi
system

A) O e set of led
er accou ts
B) No co trol accou ts
C) Cost led
er co tai s asset a d liability accou ts
D) Separate cost a d fi a cial led
ers

4. ¬ a i te
rated cost a d fi a cial accou ti
system what would be the e try to record direct labour costs
bei
char
ed to productio 
Debit Credit
A) Fi a cial led
er co trol Work-i -pro
ress
B) Productio overhead Wa
es co trol
C) Fi ished
oods Work-i -pro
ress
D) Work-i -pro
ress Wa
es co trol

5. What is an interlocking bookkeeping system?

A) A single, combined system containing both cost accounting and financial accounting records
B) A system combining cost accounting and management accounting
C) A system supported by prime entry records
D) A system where separate accounts are kept for cost accounting and for financial accounting.

6. When production has been completed what double-entry would be made in a cost accounting system?
Debit Credit
A) Cost of sales Finished goods
B) Finished goods Work-in-progress
C) Finished goods Cost of sales
D) Work-in-progress Finished goods
 Œ. The following is an extract from the list of accounts of a motor vehicle manufacturer:
Cost codes
Direct materials 1000 ± 1999
Indirect materials 2000 ± 2999
Direct labour 3000 ± 3999
Indirect labour 4000 ± 4999
Which of the following is coded INCORRECTLY?
Code Description
A) 4262 Wages of materials stores personnel
B) 4131 Wages of canteen supervisor
C) 1008 Metal for vehicle body
D) 1361 Cleaning materials

[. The cost accou ts of a busi ess are kept separate from the fi a cial accou ts but the two sets of accou ts are
reco ciled each period.
What accounting system is being described?
A) Cost co trol accou ts
B) Cost led
er accou ts
C) ¬ te
rated accou ts
D) ¬ terlocki
accou ts

9. Consider the following four accounts:

(1) Cost ledger control
(2) Financial ledger control
(3) Receivables control
(4) Work-in-progress control
Which of the accounts are features of an integrated accounting system?
A) 1 and 2 only
B) 1, 2 and 3
C) 2, 3 and 4
D) 3 and 4 only

10. When goods are sold, what double-entry would be made to record the transfer of costs?
Debit Credit
A) Finished goods account Cost of sales account
B) Sales account Cost of sales account
C) Cost of sales account Sales account
D) Cost of sales account Finished goods account

11. An extract from the list of accounts of a chemical processor follows:

Cost codes
Direct materials 001 to 099
Direct labour 100 to 199
Indirect materials 200 to 299
Indirect labour 300 to 399
Which of the following items is coded INCORRECTLY?
Description Code
A) Chemical C6 used in process 061
B) Wages of process supervisor 106
C) Chemicals used for cleaning 229
D) Wages of maintenance engineer 345










 12. The stores ledger control account for a period contained the following summary information:
$000
Supplier deliveries into stores 321
Indirect materials issued from stores 13
Returns to suppliers 8
Opening inventory in stores 46
Closing inventory in stores 59
There were no inventory discrepancies in the period.
What accounting entry correctly records the issue of direct materials from stores?
Debit Credit
A) Stores ledger account $28Œ,000 Work-in-progress account $28Œ,000
B) Work-in-progress account $28Œ,000 Stores ledger account $28Œ,000
C) Stores ledger account $313,000 Work-in-progress account $313,000
D) Work-in-progress account $313,000 Stores ledger account $313,000

A swers:

1. C
2. D
3. D
4. D
5. D
6. B
7. D
[. D
9. D
10. D
11. B