1. Which of the following statements is true ofthe accounting for finished goods when a job is completed?

Overhead costs are assigned to Finished Goods using apredetermined rate.

Finished Goods is debited when goods are sold.

The cost of completed units is credited to Work-in-Process anddebited to Finished Goods.

The costs of the completed job are retained in Work-in-Processuntil the proceeds are collectible for the job.

2. Slim Technology Inc. records the followingamounts before reconciling the overhead variance.

Applied overhead	$567,000
Actual overhead	555,000
Normal cost of goods sold	701,250

Calculate the cost of goods sold for Slim Technology Inc. afteradjusting for any overhead variance.

$677,250

$12,000

$701,250

$689,250

3. Lithium Metals Inc. recorded sales of$200,000 and cost of goods sold of $160,000 in June 20X1. Itsselling and administrative expenses totaled $12,000. Calculate thenet operating income.

$28,000

$40,000

$52,000

$12,000

1. A company completed a job on March 31, 20X1.Its cost of goods sold was $1,500. It sold the job on account to acustomer at cost plus 20%. Which of the following is the journalentry to recognize the cost of the job?

Debit Overhead Control by $1,500 and Credit Cost of Goods Soldby $1,500

Debit Cost of Goods Sold by $1,500 and Credit Finished Goods by$1,500

Debit Cost of Goods Sold by $1,800 and Credit Sales Revenue by$1,800

Debit Accounts Receivable by $1,800 and Credit Cost of GoodsSold by $1,800

2. The Overhead Control of a company has anunderapplied variance of $200. Which of the following is thejournal entry to record the closing of the underappliedoverhead?

Debit Overhead Control by $200 and Credit Cost of Goods Sold by$200

Debit Cost of Goods Sold by $200 and Credit Overhead Control by$200

Debit Budget Control by $200 and Credit Overhead Control by$200

Debit Overhead Control by $200 and Credit Budget Control by$200