Question 1

Raw Materials Used is not an element of manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

Factory-related costs that cannot be cost-effectively traced to a product,like direct material or direct labor,are considered manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 3

Immediately before it is closed,the balance of the Manufacturing Summary account represents the cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 4

If there are no errors,the amount needed to balance the Cost of Goods Manufactured columns of a worksheet will also be the amount required to balance the Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 5

The adjusting entry to close out the beginning work in process inventory includes a debit to Income Summary and a credit to Work in Process Inventory.

Accepted Answer

A) True 
 B)False

Question 6

Gross profit for a manufacturing business is computed by

Accepted Answer

A)  deducting cost of goods sold from net sales. 
B)  deducting cost of goods manufactured from net sales. 
C)  deducting the ending finished goods inventory from the total goods available for sale. 
D)  deducting operating expenses from the costs of goods sold. 
A)  deducting cost of goods sold from net sales. 
B)  deducting cost of goods manufactured from net sales. 
C)  deducting the ending finished goods inventory from the total goods available for sale. 
D)  deducting operating expenses from the costs of goods sold.

Question 7

To compute the cost of goods ___________________,it is necessary to subtract the ending work in process inventory from the sum of the beginning work in process inventory and the total manufacturing cost.

Accepted Answer

The answer of To compute the cost of goods ___________________,it...

Question 8

Using only the relevant items from the information given,determine the total product cost for Donnybrook Corporation,a manufacturer of children's furniture.All materials purchased were used in inventory during the current period.There was no beginning inventory.

Accepted Answer

The answer of Using only the relevant items from the...

Question 9

The three components of total manufacturing cost are

Accepted Answer

A)  cost of goods manufactured,cost of goods sold,and work in process. 
B)  raw materials used,direct labor,and manufacturing overhead. 
C)  selling expenses,administrative expenses,and manufacturing overhead. 
D)  raw materials used,direct labor,and cost of goods sold. 
A)  cost of goods manufactured,cost of goods sold,and work in process. 
B)  raw materials used,direct labor,and manufacturing overhead. 
C)  selling expenses,administrative expenses,and manufacturing overhead. 
D)  raw materials used,direct labor,and cost of goods sold.

Question 10

Gross profit for a manufacturing business is computed by deducting cost of goods manufactured from net sales.

Accepted Answer

A) True 
 B)False

Question 11

The balance sheet of a manufacturing business shows

Accepted Answer

A)  the finished goods inventory and the cost of goods manufactured. 
B)  the cost of goods manufactured rather than inventory figures. 
C)  a single inventory figure-the amount of the finished goods inventory. 
D)  the raw materials inventory,the work in process inventory,and the finished goods inventory. 
A)  the finished goods inventory and the cost of goods manufactured. 
B)  the cost of goods manufactured rather than inventory figures. 
C)  a single inventory figure-the amount of the finished goods inventory. 
D)  the raw materials inventory,the work in process inventory,and the finished goods inventory.

Question 12

Compute cost of goods manufactured from the information given:

Accepted Answer

A)  $38,000. 
B)  $50,000. 
C)  $24,000. 
D)  $18,000. 
A)  $38,000. 
B)  $50,000. 
C)  $24,000. 
D)  $18,000.

Question 13

The raw materials inventory,the work in process inventory,and the finished goods inventory are all shown in the Current Assets section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 14

As part of the adjusting entries,the beginning inventory of work in process is closed into the ____________________ Summary account.

Accepted Answer

The answer of As part of the adjusting entries,the beginning...

Question 15

The Indirect Labor account is closed by crediting it and debiting

Accepted Answer

A)  Wages Payable. 
B)  Income Summary. 
C)  Manufacturing Summary. 
D)  Wages Expense. 
A)  Wages Payable. 
B)  Income Summary. 
C)  Manufacturing Summary. 
D)  Wages Expense.

Question 16

A statement of cost of goods manufactured supports the income statement.

Accepted Answer

A) True 
 B)False

Question 17

Calculate the Cost of Goods Manufactured.

Accepted Answer

The answer of   Calculate the Cost of Goods...

Question 18

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

Accepted Answer

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

Question 19

As part of the adjusting entries,the beginning inventory of finished goods is closed into the ____________________ Summary account.

Accepted Answer

The answer of As part of the adjusting entries,the beginning...

Question 20

All of the items that are purchased for manufacturing operations,that go into a product and become part of it,are called ____________________ materials.

Accepted Answer

The answer of All of the items that are purchased...

Exam 26: Accounting for Manufacturing Activities

Raw Materials Used is not an element of manufacturing overhead.

Factory-related costs that cannot be cost-effectively traced to a product,like direct material or direct labor,are considered manufacturing overhead.

Immediately before it is closed,the balance of the Manufacturing Summary account represents the cost of goods manufactured.

If there are no errors,the amount needed to balance the Cost of Goods Manufactured columns of a worksheet will also be the amount required to balance the Balance Sheet columns.

The adjusting entry to close out the beginning work in process inventory includes a debit to Income Summary and a credit to Work in Process Inventory.

Gross profit for a manufacturing business is computed by

To compute the cost of goods ___________________,it is necessary to subtract the ending work in process inventory from the sum of the beginning work in process inventory and the total manufacturing cost.

Using only the relevant items from the information given,determine the total product cost for Donnybrook Corporation,a manufacturer of children's furniture.All materials purchased were used in inventory during the current period.There was no beginning inventory.

The three components of total manufacturing cost are

Gross profit for a manufacturing business is computed by deducting cost of goods manufactured from net sales.

The balance sheet of a manufacturing business shows

Compute cost of goods manufactured from the information given:

The raw materials inventory,the work in process inventory,and the finished goods inventory are all shown in the Current Assets section of the balance sheet.

As part of the adjusting entries,the beginning inventory of work in process is closed into the ____________________ Summary account.

The Indirect Labor account is closed by crediting it and debiting

A statement of cost of goods manufactured supports the income statement.

Calculate the Cost of Goods Manufactured.

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

As part of the adjusting entries,the beginning inventory of finished goods is closed into the ____________________ Summary account.

All of the items that are purchased for manufacturing operations,that go into a product and become part of it,are called ____________________ materials.

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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