Question 1

Total manufacturing costs incurred include:

Accepted Answer

A) direct labor costs. 
B) raw materials costs. 
C) manufacturing overhead. 
D) All of the above 
A) direct labor costs. 
B) raw materials costs. 
C) manufacturing overhead. 
D) All of the above

Question 2

Charged direct labor to production.
Debit ________ Credit ________

Accepted Answer

The answer of Charged direct labor to production.
Debit ________ Credit...

Question 3

Cost of goods manufactured is determined before the income statement can be completed.

Accepted Answer

A) True 
 B)False

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

Accepted Answer

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

Question 5

Omega.com sold 25 jet skis on account for $7,000 which cost $5,000.The entry to record the sale would include:

Accepted Answer

A) credit to Finished Goods Inventory $5,000. 
B) credit to Account Receivable for $7,000. 
C) debit to Cost of Goods Sold for $7,000. 
D) all of the above. 
A) credit to Finished Goods Inventory $5,000. 
B) credit to Account Receivable for $7,000. 
C) debit to Cost of Goods Sold for $7,000. 
D) all of the above.

Question 6

Indirect costs were 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 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 7

The Manufacturing Overhead-Control account is used for the:

Accepted Answer

A) application of overhead to production and it has a debit balance. 
B) accumulation of all actual overhead costs and it has a credit balance. 
C) application of overhead to production and it has a credit balance. 
D) accumulation of all actual overhead costs and it has a debit balance. 
A) application of overhead to production and it has a debit balance. 
B) accumulation of all actual overhead costs and it has a credit balance. 
C) application of overhead to production and it has a credit balance. 
D) accumulation of all actual overhead costs and it has a debit balance.

Question 8

If a company had a beginning balance of $8,000 in Finished Goods Inventory,an ending balance of $5,000 in Finished Goods Inventory and cost of goods manufactured was $47,000 during the month,then the cost of goods sold for the month was $44,000.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

From the following information,calculate (a)cost of raw materials used and (b)total manufacturing costs.
 $\begin{array}{lr}
\text { Raw Materials Inventory, June 1 } & \$ 20,000 \
\text { Raw Materials Inventory, June 30 } & 15,000 \
\text { Overhead } & 35,000 \
\text { Finished Goods Inventory } & 17,000 \
\text { Direct Labor } & 29,000 \
\text { Raw Materials Furchased } & 75,000
\end{array}$ 
a.________
b.________

Accepted Answer

a.$80,000 (20,000 +

Question 11

Which of the following journal entries would be made to apply the cost of indirect labor to production?

Accepted Answer

A) 
$$\begin{array}{|l|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Manufacturing Overhead-Control}\\hline
\end{array}$$ 
B) 
$$\begin{array}{|l|}
\hline \text {Manufacturing Overhead-Control}\
\hline \text {Payroll Payable}\\hline
\end{array}$$ 
C) 
$$\begin{array}{|l|}
\hline \text {Finished Goods Inventory}\
\hline \text {
Manufacturing Overhead-Control}\\hline
\end{array}$$ 
D) 
Work-in-Process Inventory
Manufacturing Overhead-Applied 
A) 
$$\begin{array}{|l|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Manufacturing Overhead-Control}\\hline
\end{array}$$ 
B) 
$$\begin{array}{|l|}
\hline \text {Manufacturing Overhead-Control}\
\hline \text {Payroll Payable}\\hline
\end{array}$$ 
C) 
$$\begin{array}{|l|}
\hline \text {Finished Goods Inventory}\
\hline \text {
Manufacturing Overhead-Control}\\hline
\end{array}$$ 
D) 
Work-in-Process Inventory
Manufacturing Overhead-Applied

Question 12

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

Accepted Answer

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

Question 13

Issued raw materials to production.
Debit ________ Credit ________

Accepted Answer

The answer of Issued raw materials to production.
Debit ________ Credit...

Question 14

A lot ticket 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 storeroom. 
C) document used for charging material to production. 
D) None of these answers is correct. 
A) document prepared to show the movement of materials or products between departments. 
B) document used to order materials or supplies from the storeroom. 
C) document used for charging material to production. 
D) None of these answers is correct.

Question 15

Calculate the cost of goods sold when beginning finished goods inventory equals $80,000,ending finished goods inventory $65,000,and cost of goods manufactured $600,000.

Accepted Answer

A) $615,000 
B) $445,000 
C) $685,000 
D) $585,000 
A) $615,000 
B) $445,000 
C) $685,000 
D) $585,000

Question 16

Manufacturing overhead includes all manufacturing costs except which of the following?

Accepted Answer

A) Raw materials 
B) Overhead 
C) Direct labor 
D) Both A and C 
A) Raw materials 
B) Overhead 
C) Direct labor 
D) Both A and C

Question 17

Candyland completed the manufacturing process.The entry to transfer the product to finished goods is:

Accepted Answer

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

Question 18

The overhead application rate may be based on:

Accepted Answer

A) machine hours. 
B) direct labor hours. 
C) direct labor dollars. 
D) All of these answers are correct. 
A) machine hours. 
B) direct labor hours. 
C) direct labor dollars. 
D) All of these answers are correct.

Question 19

The estimated manufacturing overhead cost was $25,000 and estimated machine hours were 10,000.Actual manufacturing overhead cost was $24,000 and actual machine hours were 12,000.The overhead application rate per hour based on machine hours is:

Accepted Answer

A) $2.50. 
B) $2.00. 
C) $2.40. 
D) $2.08. 
A) $2.50. 
B) $2.00. 
C) $2.40. 
D) $2.08.

Question 20

Metal used in construction of a tank is part of:

Accepted Answer

A) raw material costs. 
B) labor costs. 
C) manufacturing overhead. 
D) None of these answers is correct. 
A) raw material costs. 
B) labor costs. 
C) manufacturing overhead. 
D) None of these answers is correct.

Exam 25: Manufacturing Accounting

Total manufacturing costs incurred include:

Charged direct labor to production. Debit ________ Credit ________

Cost of goods manufactured is determined before the income statement can be completed.

Omega.com sold 25 jet skis on account for $7,000 which cost $5,000.The entry to record the sale would include:

Indirect costs were understated.This error will cause:

The Manufacturing Overhead-Control account is used for the:

If a company had a beginning balance of $8,000 in Finished Goods Inventory,an ending balance of $5,000 in Finished Goods Inventory and cost of goods manufactured was $47,000 during the month,then the cost of goods sold for the month was $44,000.

Which of the following journal entries would be made to apply the cost of indirect labor to production?

Issued raw materials to production. Debit ________ Credit ________

A lot ticket is a:

Calculate the cost of goods sold when beginning finished goods inventory equals $80,000,ending finished goods inventory $65,000,and cost of goods manufactured $600,000.

Manufacturing overhead includes all manufacturing costs except which of the following?

Candyland completed the manufacturing process.The entry to transfer the product to finished goods is:

The overhead application rate may be based on:

The estimated manufacturing overhead cost was $25,000 and estimated machine hours were 10,000.Actual manufacturing overhead cost was $24,000 and actual machine hours were 12,000.The overhead application rate per hour based on machine hours is:

Metal used in construction of a tank is part of:

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

Charged direct labor to production. Debit Credit

Issued raw materials to production. Debit Credit