Question 1
Auditors test the quantity of materials charged to work-in-process by tracing these quantities to
◦ cost ledgers.
◦ perpetual inventory records.
◦ receiving reports.
◦ material requisitions.
Question 2
In most manufacturing companies, the inventory and warehousing cycle begins with the
◦ receipt of a customer's order.
◦ completion of production of a customer's order.
◦ initiation of production of a customer's order.
◦ acquisition of raw materials for production.