Question 1

Finished Goods Inventory is credited when products are sold and debited when the products are transferred from Work-in-Process Inventory.

Accepted Answer

A) True 
 B)False

Question 2

All expenses are listed on the income statement of a manufacturer.

Accepted Answer

A) True 
 B)False

Question 3

Molly Manufacturing is using a manufacturing overhead application rate of 125% of machine cost.A job uses 35 machine hours at $9/hour.How much overhead should be applied to the job?

Accepted Answer

A) $315.00 
B) $393.75 
C) ($393.75) 
D) ($315.00) 
A) $315.00 
B) $393.75 
C) ($393.75) 
D) ($315.00)

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).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Raw materials } & & & & \
\text { inventory } & & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 5

If a company had a beginning balance of $5,000 in Raw Materials,an ending balance of $3,000 and purchased $27,000 of materials during the month,then the raw material used for the month was $25,000.

Accepted Answer

A) True 
 B)False

Question 6

The income statement reports the work in process inventory.

Accepted Answer

A) True 
 B)False

Question 7

The journal entry to record issuing supplies from the storeroom would include a:

Accepted Answer

A) Debit to Manufacturing Overhead-Applied 
B) Credit to Manufacturing Overhead-Control 
C) Credit to Manufacturing Overhead-Applied 
D) Debit to Manufacturing Overhead-Control 
A) Debit to Manufacturing Overhead-Applied 
B) Credit to Manufacturing Overhead-Control 
C) Credit to Manufacturing Overhead-Applied 
D) Debit to Manufacturing Overhead-Control

Question 8

When manufacturing a product,direct labor includes the wages of:

Accepted Answer

A) an hourly worker producing the product. 
B) the shop foreman. 
C) maintenance workers. 
D) administrators. 
A) an hourly worker producing the product. 
B) the shop foreman. 
C) maintenance workers. 
D) administrators.

Question 9

Transferred completed products to finished goods.
Debit ________ Credit ________

Accepted Answer

The answer of Transferred completed products to finished goods.
Debit ________...

Question 10

From the following,calculate the cost of raw materials used and total manufacturing costs:
 $$\begin{array} { l r } 
\text { Raw Materials Inventory, Sep. } 1 & \$ 4,000 \
\text { Raw Materials Inventory, Sep. } 30 & 5,000 \
\text { Work-in-Process Inventory, Sep. } 1 & 6,000 \
\text { Work-in-Process Inventory, Sep. } 30 & 5,000 \
\text { Raw Materials Purchased } & 8,000 \
\text { Direct Labor } & 9,000 \
\text { Depreciation Expense } & 7,000 \
\text { Factory Utilities } & 3,000
\end{array}$$

Accepted Answer

Raw Materials used: $7,000 (4,

Question 11

Work-in-Process Inventory is credited when goods are transferred to finished goods.

Accepted Answer

A) True 
 B)False

Question 12

List four of the six source documents covered in this unit,and explain the function of each in the accounting process.

Accepted Answer

The six source documents are as follows:

Question 13

In entries to record the movement of material,labor,and overhead through the operation of a company,the credit is the destination and the debit is the source.

Accepted Answer

A) True 
 B)False

Question 14

The following data are available for Skyway:
$$\begin{array} { | l | l | } 
\hline \text { Estimated machine hours } & 40,000 \text { hours } \
\hline \text { Estimated overhead costs } & \$ 80,000 \
\hline
\end{array}$$
If overhead is applied based on machine hours,the predetermined overhead rate is:

Accepted Answer

A) $2.00. 
B) $20.00. 
C) $0.50. 
D) 200%. 
A) $2.00. 
B) $20.00. 
C) $0.50. 
D) 200%.

Question 15

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).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Factory } \
\text { equipment }
\end{array} & & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 16

XYZ Company has direct labor for the month of $40,000.XYZ's annual overhead is $600,000 and annual direct labor cost is $1,000,000.Overhead is applied based on direct labor.What is the entry to charge direct labor to production?

Accepted Answer

A) Debit Work-in-Process Inventory $40,000;credit Payroll Payable $40,000 
B) Debit Manufacturing Overhead-Applied $40,000;credit Work-in-Process Inventory $40,000 
C) Debit Work-in-Process Inventory $24,000;credit Manufacturing Overhead-Applied $24,000 
D) Debit Work-in-Process Inventory $66,000;credit Manufacturing Overhead-Applied $66,000 
A) Debit Work-in-Process Inventory $40,000;credit Payroll Payable $40,000 
B) Debit Manufacturing Overhead-Applied $40,000;credit Work-in-Process Inventory $40,000 
C) Debit Work-in-Process Inventory $24,000;credit Manufacturing Overhead-Applied $24,000 
D) Debit Work-in-Process Inventory $66,000;credit Manufacturing Overhead-Applied $66,000

Question 17

Hourly wages of production line employees is one of the costs included in the work-in-process inventory.

Accepted Answer

A) True 
 B)False

Question 18

What inventories are included in determining total manufacturing costs?

Accepted Answer

A) Beginning and ending finished goods 
B) Beginning and ending raw materials 
C) Beginning and ending work-in-process 
D) None of the above answers is correct. 
A) Beginning and ending finished goods 
B) Beginning and ending raw materials 
C) Beginning and ending work-in-process 
D) None of the above answers is correct.

Question 19

A shop foreman's salary is not considered indirect labor.

Accepted Answer

A) True 
 B)False

Question 20

From the following information calculate total manufacturing costs and cost of goods manufactured.
 $$\begin{array} { l r } 
\text { Raw Materials Inventory, Sep. } 1 & \$ 5,000 \
\text { Raw Materials Inventory, Sep. } 30 & 2,000 \
\text { Work-in-Process Inventory, Sep. } 1 & 3,000 \
\text { Work-in-Process Inventory, Sep. } 30 & 1,000 \
\text { Raw Materials Purchased } & 6,000 \
\text { Direct Labor } & 8,000 \
\text { Depreciation Expense } & 5,000 \
\text { Factory Utilities } & 2,000
\end{array}$$

Accepted Answer

Total manufacturing

Exam 25: Manufacturing Accounting

Finished Goods Inventory is credited when products are sold and debited when the products are transferred from Work-in-Process Inventory.

All expenses are listed on the income statement of a manufacturer.

Molly Manufacturing is using a manufacturing overhead application rate of 125% of machine cost.A job uses 35 machine hours at $9/hour.How much overhead should be applied to the job?

If a company had a beginning balance of $5,000 in Raw Materials,an ending balance of $3,000 and purchased $27,000 of materials during the month,then the raw material used for the month was $25,000.

The income statement reports the work in process inventory.

The journal entry to record issuing supplies from the storeroom would include a:

When manufacturing a product,direct labor includes the wages of:

Transferred completed products to finished goods. Debit ________ Credit ________

Work-in-Process Inventory is credited when goods are transferred to finished goods.

List four of the six source documents covered in this unit,and explain the function of each in the accounting process.

In entries to record the movement of material,labor,and overhead through the operation of a company,the credit is the destination and the debit is the source.

The following data are available for Skyway: Estimated machine hours 40,000 hours Estimated overhead costs \ 80,000 If overhead is applied based on machine hours,the predetermined overhead rate is:

XYZ Company has direct labor for the month of $40,000.XYZ's annual overhead is $600,000 and annual direct labor cost is $1,000,000.Overhead is applied based on direct labor.What is the entry to charge direct labor to production?

Hourly wages of production line employees is one of the costs included in the work-in-process inventory.

What inventories are included in determining total manufacturing costs?

A shop foreman's salary is not considered indirect labor.

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

Transferred completed products to finished goods. Debit Credit