Question 1

The end-of-period adjusting entries are

Accepted Answer

A)  recorded and posted in the ledger. 
B)  recorded in the journal and posted in the ledger. 
C)  recorded in the ledger and posted in the journal. 
D)  recorded and posted in the journal. 
A)  recorded and posted in the ledger. 
B)  recorded in the journal and posted in the ledger. 
C)  recorded in the ledger and posted in the journal. 
D)  recorded and posted in the journal.

Question 2

Cleaning materials and lubricants used in factory operations and maintenance are considered manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 3

Six adjusting entries are made for inventory accounts in a manufacturing operation.

Accepted Answer

A) True 
 B)False

Question 4

Closing entries for a manufacturing firm include all of the following except

Accepted Answer

A)  transferring all manufacturing cost accounts to Manufacturing Summary. 
B)  transferring all Revenue and Expense account balances to Income Summary. 
C)  closing Manufacturing Summary to Income Summary. 
D)  closing Income Summary to Net Income. 
A)  transferring all manufacturing cost accounts to Manufacturing Summary. 
B)  transferring all Revenue and Expense account balances to Income Summary. 
C)  closing Manufacturing Summary to Income Summary. 
D)  closing Income Summary to Net Income.

Question 5

The ending balance of the work in process inventory is recorded by debiting Work in Process Inventory and crediting

Accepted Answer

A)  Income Summary. 
B)  Cost of Goods Sold. 
C)  Manufacturing Summary. 
D)  Merchandise Inventory. 
A)  Income Summary. 
B)  Cost of Goods Sold. 
C)  Manufacturing Summary. 
D)  Merchandise Inventory.

Question 6

The Cost of Goods Sold section of the income statement for a manufacturing business shows the work in process inventory.

Accepted Answer

A) True 
 B)False

Question 7

What is the postclosing Trial Balance and why is it prepared?

Accepted Answer

The postclosing Trial Balance is prepare

Question 8

On the completed worksheet of a manufacturing business,the accounts related to materials purchases,direct labor,and factory overhead

Accepted Answer

A)  appear in the Income Statement section. 
B)  do not appear. 
C)  appear in the Balance Sheet section. 
D)  appear in the Cost of Goods Manufactured section. 
A)  appear in the Income Statement section. 
B)  do not appear. 
C)  appear in the Balance Sheet section. 
D)  appear in the Cost of Goods Manufactured section.

Question 9

Fill in the missing line items on the Income Statement given.Include correct indentations,underlines,dates,and capitalization when needed.

Accepted Answer

The answer of Fill in the missing line items on...

Question 10

Benefits of maintaining inventory records on a perpetual basis include all of the following except:

Accepted Answer

A)  provides improved cost control. 
B)  easier to identify potential shortages. 
C)  avoid annual physical counts. 
D)  improved customer experiences. 
A)  provides improved cost control. 
B)  easier to identify potential shortages. 
C)  avoid annual physical counts. 
D)  improved customer experiences.

Question 11

The ending inventory of raw materials is shown on the worksheet of a manufacturing business in the Cost of Goods Manufactured ____________________ column.

Accepted Answer

The answer of The ending inventory of raw materials is...

Question 12

The raw materials inventory is shown in the ____________________ section of the balance sheet of a manufacturing business.

Accepted Answer

The answer of The raw materials inventory is shown in...

Question 13

If the ending finished goods inventory is greater than the beginning finished goods inventory,the cost of goods sold will be higher than the cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 14

Other than the adjusting entries that are made to Manufacturing Summary and to Income Summary for inventory,there are several adjustments that are normally made.List at least three and discuss why they are made and what accounts are affected.

Accepted Answer

(1. )There is usually an adjustment to t

Question 15

Whaler utilizes automated machines to sew sails for its whaling ships.The manufacturing records indicate the Model Z7B sail uses $4,500 of fabric,requires 2 direct labor hours to finish and tie off threads and 5 hours of machine sewing time.The direct labor rate averages $12.50 per hour.Manufacturing overhead is added to the product cost of a sail based on a rate of $40 per machine hour.The company applies a 32% markup on cost.What is the sales price of a Model Z7B sail?

Accepted Answer

A)  $6,237. 
B)  $4,725. 
C)  $6,026. 
D)  $6,009. 
A)  $6,237. 
B)  $4,725. 
C)  $6,026. 
D)  $6,009.

Question 16

The amounts of the raw materials used,direct labor,and manufacturing overhead for a fiscal period are reported on the statement of cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 17

For a manufacturing business,net sales minus cost of goods ____________________ equals gross profit on sales.

Accepted Answer

The answer of For a manufacturing business,net sales minus cost...

Question 18

The following information appears on the Statement of Cost of Goods Manufactured for the Poster Company at the end of the year.   Manufacturing Overhead for the year was:

Accepted Answer

A)  $60,000. 
B)  $50,000. 
C)  $40,000. 
D)  $30,000. 
A)  $60,000. 
B)  $50,000. 
C)  $40,000. 
D)  $30,000.

Question 19

The statement of cost of goods manufactured

Accepted Answer

A)  supports the income statement. 
B)  replaces the income statement. 
C)  is not related to the income statement. 
D)  supports the balance sheet. 
A)  supports the income statement. 
B)  replaces the income statement. 
C)  is not related to the income statement. 
D)  supports the balance sheet.

Question 20

What are the three inventory accounts for a manufacturing firm? List the three inventory accounts and indicate for each the name(s)of the statement(s)in which it appears.

Accepted Answer

The answer of What are the three inventory accounts for...

Exam 26: Accounting for Manufacturing Activities

The end-of-period adjusting entries are

Cleaning materials and lubricants used in factory operations and maintenance are considered manufacturing overhead.

Six adjusting entries are made for inventory accounts in a manufacturing operation.

Closing entries for a manufacturing firm include all of the following except

The ending balance of the work in process inventory is recorded by debiting Work in Process Inventory and crediting

The Cost of Goods Sold section of the income statement for a manufacturing business shows the work in process inventory.

What is the postclosing Trial Balance and why is it prepared?

On the completed worksheet of a manufacturing business,the accounts related to materials purchases,direct labor,and factory overhead

Fill in the missing line items on the Income Statement given.Include correct indentations,underlines,dates,and capitalization when needed.

Benefits of maintaining inventory records on a perpetual basis include all of the following except:

The ending inventory of raw materials is shown on the worksheet of a manufacturing business in the Cost of Goods Manufactured ____________________ column.

The raw materials inventory is shown in the ____________________ section of the balance sheet of a manufacturing business.

If the ending finished goods inventory is greater than the beginning finished goods inventory,the cost of goods sold will be higher than the cost of goods manufactured.

Other than the adjusting entries that are made to Manufacturing Summary and to Income Summary for inventory,there are several adjustments that are normally made.List at least three and discuss why they are made and what accounts are affected.

The amounts of the raw materials used,direct labor,and manufacturing overhead for a fiscal period are reported on the statement of cost of goods manufactured.

For a manufacturing business,net sales minus cost of goods ____________________ equals gross profit on sales.

The following information appears on the Statement of Cost of Goods Manufactured for the Poster Company at the end of the year. Manufacturing Overhead for the year was:

The statement of cost of goods manufactured

What are the three inventory accounts for a manufacturing firm? List the three inventory accounts and indicate for each the name(s)of the statement(s)in which it appears.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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