XYZ company uses a job-order costing system. In reviewing its records at the end of the year, the company has discovered that OMR 12,000 of raw materials has been drawn from the storeroom and used in the production of Job PS5, but that no entry has been made in the accounting records for the use of these materials. Job PS5 has been completed but it is unsold at year end. This error will cause: O a. None of the given answer is correct O b. Cost of Goods Sold to be overstated by OMR 12,000 for the year. Oc Finished Goods to be overstated by OMR 12,000 at the end of the year. O d. Cost of Goods Manufactured to be overstated by OMR 12.000 for the year. O e Workin Process to be understated by OMR 12,000 at year end.
XYZ company uses a job-order costing system. In reviewing its records at the end of the year, the company has discovered that OMR 12,000 of raw materials has been drawn from the storeroom and used in the production of Job PS5, but that no entry has been made in the accounting records for the use of these materials. Job PS5 has been completed but it is unsold at year end. This error will cause: O a. None of the given answer is correct O b. Cost of Goods Sold to be overstated by OMR 12,000 for the year. Oc Finished Goods to be overstated by OMR 12,000 at the end of the year. O d. Cost of Goods Manufactured to be overstated by OMR 12.000 for the year. O e Workin Process to be understated by OMR 12,000 at year end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
١٨
Transcribed Image Text:Oc Choosing among altermatives
Od. Establishing goals
None of the given answers
XYZ company uses a job-order costing system. In reviewing its records at the end of the year, the company has discovered that
OMR 12,000 of raw materials has been drawn from the storeroom and used in the production of Job PS5, but that no entry has
been made in the accounting records for the use of these materials. Job PS5 has been completed but it is unsold at year end.
This error vwill cause:
Oa. Noneof the given answer is correct
Ob. Cost of Goods Sold to be overstated by OMR 12,000 for the year.
Oc Finished Goods to be overstated by OMR 12,000 at the end of the year
O d. Cost of Goods Manufactured to be coverstated by OMR 12,000 for the year,
O e. Work in Process to be understated by OMR 12.000 at year end.
GE
NEXT PAGE
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education