Question 1

The work-in-process beginning inventory was understated.This error will cause:

Accepted Answer

A) the cost of goods manufactured to be overstated. 
B) the cost of goods sold to be overstated. 
C) the net income to be overstated. 
D) Answers B and C are correct. 
A) the cost of goods manufactured to be overstated. 
B) the cost of goods sold to be overstated. 
C) the net income to be overstated. 
D) Answers B and C are correct.

Question 2

In a manufacturing company,the purchase of raw materials on account should be recorded as follows:

Accepted Answer

A) 
$$\begin{array}{|l|}
\hline \text {Raw Material Inventory}\
\hline \text {Accounts Payable}\\hline
\end{array}$$ 
B) 
$$\begin{array}{|l|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Accounts Payable}\\hline
\end{array}$$ 
C) 
$$\begin{array}{|l|}
\hline \text {Finished Goods Inventory}\
\hline \text {Accounts Payable}\\hline
\end{array}$$ 
D) 
$$\begin{array}{|l|}
\hline \text {Accounts Payable}\
\hline \text {Raw Materials Inventory}\\hline
\end{array}$$ 
A) 
$$\begin{array}{|l|}
\hline \text {Raw Material Inventory}\
\hline \text {Accounts Payable}\\hline
\end{array}$$ 
B) 
$$\begin{array}{|l|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Accounts Payable}\\hline
\end{array}$$ 
C) 
$$\begin{array}{|l|}
\hline \text {Finished Goods Inventory}\
\hline \text {Accounts Payable}\\hline
\end{array}$$ 
D) 
$$\begin{array}{|l|}
\hline \text {Accounts Payable}\
\hline \text {Raw Materials Inventory}\\hline
\end{array}$$

Question 3

Calculate the cost of goods manufactured from the following information.
 $$\begin{array} { l r } 
\text { Beginuing Raw Materials Inventory: } & \$ 63,000 \
\text { Ending Raw Materials Inventory: } & 58,000 \
\text { Overhead: } & 36,000 \
\text { Beginning Finished Goods Inventory: } & 27,000 \
\text { Ending Finished Goods Inventory: } & 32,000 \
\text { Direct Labor: } & 42,000 \
\text { Raw Materials Purchased: } & 73,000 \
\text { Beginning Work-in-Process Inventory: } & 12,000 \
\text { Ending Work-in-Process Inventory: } & 15,000
\end{array}$$

Accepted Answer

$153,000 (63,000 + 7

Question 4

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Accounts } \
\text { receivable }
\end{array} & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 5

The accrual for the direct labor at the end of the year was not prepared.This error will cause:

Accepted Answer

A) the cost of goods manufactured to be overstated. 
B) the cost of goods sold to be overstated. 
C) the net income to be understated. 
D) None of these answers is correct. 
A) the cost of goods manufactured to be overstated. 
B) the cost of goods sold to be overstated. 
C) the net income to be understated. 
D) None of these answers is correct.

Question 6

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Work in process } \
\text { inventory }
\end{array} & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 7

The major difference on the balance sheet of a manufacturing company when compared to a merchandise company is to include:

Accepted Answer

A) a retained earnings section. 
B) three inventory accounts,rather than one. 
C) prepaid expenses. 
D) accrued payroll. 
A) a retained earnings section. 
B) three inventory accounts,rather than one. 
C) prepaid expenses. 
D) accrued payroll.

Question 8

Direct labor for the month is $50,000,and overhead is applied based on direct labor cost.Annual overhead is estimated to be $450,000,and annual direct labor is estimated to be $800,000.What is the entry to apply overhead to production?

Accepted Answer

A) Debit Work-in-Process Inventory $28,125;credit Payroll Payable $28,125 
B) Debit Manufacturing Overhead-Applied $28,125;credit Work-in-Process Inventory $28,125 
C) Debit Work-in-Process Inventory $28,125;credit Manufacturing Overhead-Applied $28,125 
D) Debit Work-in-Process Inventory $50,000;credit Manufacturing Overhead-Applied $50,000 
A) Debit Work-in-Process Inventory $28,125;credit Payroll Payable $28,125 
B) Debit Manufacturing Overhead-Applied $28,125;credit Work-in-Process Inventory $28,125 
C) Debit Work-in-Process Inventory $28,125;credit Manufacturing Overhead-Applied $28,125 
D) Debit Work-in-Process Inventory $50,000;credit Manufacturing Overhead-Applied $50,000

Question 9

The Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory accounts appear on the manufacturing worksheet in the:

Accepted Answer

A) balance sheet columns. 
B) income statement columns. 
C) statement of cost of goods manufactured. 
D) All of the above 
A) balance sheet columns. 
B) income statement columns. 
C) statement of cost of goods manufactured. 
D) All of the above

Question 10

Sylvan Manufacturing applies overhead based on direct labor hours.At the beginning of the year,it estimated that overhead costs would be $150,000 and direct labor hours would be 15,000.The applied overhead rate per direct labor hour is:

Accepted Answer

A) $7.50. 
B) $15.00. 
C) $10.00 
D) None of the above 
A) $7.50. 
B) $15.00. 
C) $10.00 
D) None of the above

Question 11

Which inventory account consists of manufacturing cost of goods that are complete?

Accepted Answer

A) Work-in-Process Inventory 
B) Raw Material Inventory 
C) Manufacturing Overhead 
D) Finished Goods Inventory 
A) Work-in-Process Inventory 
B) Raw Material Inventory 
C) Manufacturing Overhead 
D) Finished Goods Inventory

Question 12

Finished goods inventory is listed on the schedule of cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 13

The bill of lading is a formal document issued to the carrier for shipping the finished product to a customer.

Accepted Answer

A) True 
 B)False

Question 14

Raw Material Inventory is credited and Work-in-Process Inventory is debited when raw material is transferred to production.

Accepted Answer

A) True 
 B)False

Question 15

From the following,calculate the cost of raw materials used,total manufacturing costs and cost of goods manufactured:
 $$\begin{array} { l r } 
\text { Raw Materials Inventory, Sep. } 1 & \$ 10,000 \
\text { Raw Materials Inventory, Sep. } 30 & 6,000 \
\text { Work-in-Process Inventory, Sep. } 1 & 12,000 \
\text { Work-in-Process Inventory, Sep. } 30 & 15,000 \
\text { Raw Materials Purchased } & 25,000 \
\text { Direct Labor } & 20,000 \
\text { Depreciation Expense } & 6,000 \
\text { Factory Utilities } & 4,000
\end{array}$$

Accepted Answer

Materials Used: $29,000 (10,00

Question 16

The Manufacturing Overhead-Control account is used to apply overhead costs to production.

Accepted Answer

A) True 
 B)False

Question 17

A material requisition is a:

Accepted Answer

A) document prepared to show the movement of materials or products between departments. 
B) document used to order materials or supplies from the vendor or supplier. 
C) document used for charging material to production. 
D) document used to record receipt of materials or supplies from the vendor or supplier. 
A) document prepared to show the movement of materials or products between departments. 
B) document used to order materials or supplies from the vendor or supplier. 
C) document used for charging material to production. 
D) document used to record receipt of materials or supplies from the vendor or supplier.

Question 18

Screws,electricity for manufacturing,and production supervisor salary are examples of:

Accepted Answer

A) raw materials. 
B) direct labor. 
C) manufacturing overhead. 
D) None of the above 
A) raw materials. 
B) direct labor. 
C) manufacturing overhead. 
D) None of the above

Question 19

Adams Manufacturing has estimated manufacturing overhead at $125,000 and has estimated direct labor of 10,000 direct labor hours at $10.00 per hour.The overhead rate per direct labor dollar would be:

Accepted Answer

A) $0.80. 
B) $8.00. 
C) $1.25. 
D) $7.20. 
A) $0.80. 
B) $8.00. 
C) $1.25. 
D) $7.20.

Question 20

Seascape Interiors produces artist supplies.Listed below are the costs of production and inventory.
 $$\begin{array} { l r } 
\text { Direct Labor } & \$ 60,000 \
\text { Raw Materials Inventory, Aug. } 1 & 45,000 \
\text { Raw Materials Purchases } & 75,000 \
\text { Raw Materials Inventory, Aug. } 31 & 25,000 \
\text { Overhead } & 50,000 \
\text { Work-in-Process Inventory Aug. } 1 & 21,000 \
\text { Work-in-Process Inventory Aug. } 31 & 27,000 \
\text { Finished Coods Inventory Aug. } 31 & 18,000
\end{array}$$ 
Compute:
a.Cost of raw materials used in production
b.Total manufacturing costs
c.Total cost of goods manufactured

Accepted Answer

a.$95,000 (45,000+75,000-25,00

The work-in-process beginning inventory was understated.This error will cause:

In a manufacturing company,the purchase of raw materials on account should be recorded as follows:

The accrual for the direct labor at the end of the year was not prepared.This error will cause:

The major difference on the balance sheet of a manufacturing company when compared to a merchandise company is to include:

Direct labor for the month is $50,000,and overhead is applied based on direct labor cost.Annual overhead is estimated to be $450,000,and annual direct labor is estimated to be $800,000.What is the entry to apply overhead to production?

The Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory accounts appear on the manufacturing worksheet in the:

Sylvan Manufacturing applies overhead based on direct labor hours.At the beginning of the year,it estimated that overhead costs would be $150,000 and direct labor hours would be 15,000.The applied overhead rate per direct labor hour is:

Which inventory account consists of manufacturing cost of goods that are complete?

Finished goods inventory is listed on the schedule of cost of goods sold.

The bill of lading is a formal document issued to the carrier for shipping the finished product to a customer.

Raw Material Inventory is credited and Work-in-Process Inventory is debited when raw material is transferred to production.

The Manufacturing Overhead-Control account is used to apply overhead costs to production.

A material requisition is a:

Screws,electricity for manufacturing,and production supervisor salary are examples of:

Adams Manufacturing has estimated manufacturing overhead at $125,000 and has estimated direct labor of 10,000 direct labor hours at $10.00 per hour.The overhead rate per direct labor dollar would be:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Filters

Exam 25: Manufacturing Accounting

The work-in-process beginning inventory was understated.This error will cause:

In a manufacturing company,the purchase of raw materials on account should be recorded as follows:

The accrual for the direct labor at the end of the year was not prepared.This error will cause:

The major difference on the balance sheet of a manufacturing company when compared to a merchandise company is to include:

Direct labor for the month is $50,000,and overhead is applied based on direct labor cost.Annual overhead is estimated to be $450,000,and annual direct labor is estimated to be $800,000.What is the entry to apply overhead to production?

The Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory accounts appear on the manufacturing worksheet in the:

Sylvan Manufacturing applies overhead based on direct labor hours.At the beginning of the year,it estimated that overhead costs would be $150,000 and direct labor hours would be 15,000.The applied overhead rate per direct labor hour is:

Which inventory account consists of manufacturing cost of goods that are complete?

Finished goods inventory is listed on the schedule of cost of goods sold.

The bill of lading is a formal document issued to the carrier for shipping the finished product to a customer.

Raw Material Inventory is credited and Work-in-Process Inventory is debited when raw material is transferred to production.

The Manufacturing Overhead-Control account is used to apply overhead costs to production.

A material requisition is a:

Screws,electricity for manufacturing,and production supervisor salary are examples of:

Adams Manufacturing has estimated manufacturing overhead at $125,000 and has estimated direct labor of 10,000 direct labor hours at $10.00 per hour.The overhead rate per direct labor dollar would be:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Filters