Question 1

One way to determine an overhead application rate is to divide estimated annual overhead costs by estimated annual direct labor hours.

Accepted Answer

A) True 
 B)False

Question 2

From the following, calculate the cost of raw materials used and total manufacturing costs:

Accepted Answer

Raw Materials used: $13,000 (8

Question 3

The journal entry to record the direct labor summarized on the labor distribution report would include a:

Accepted Answer

A)  debit to Payroll Expense. 
B)  debit to Work-in-Process Inventory. 
C)  credit to Payroll Payable. 
D)  Both B and C 
A)  debit to Payroll Expense. 
B)  debit to Work-in-Process Inventory. 
C)  credit to Payroll Payable. 
D)  Both B and C

Question 4

Ending finished goods inventory is subtracted from cost of goods available for sale to get:

Accepted Answer

A)  cost of goods manufactured. 
B)  cost of goods sold. 
C)  gross profit. 
D)  None of the above 
A)  cost of goods manufactured. 
B)  cost of goods sold. 
C)  gross profit. 
D)  None of the above

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

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).
-

Accepted Answer

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

Question 9

The estimated manufacturing overhead cost was $26,000 and estimated machine hours were 14,000. Actual manufacturing overhead cost was $30,000 and actual machine hours were 12,000. The overhead application rate per hour based on machine hours is: (Round your answer to the nearest cent.)

Accepted Answer

A)  $1.86. 
B)  $2.50. 
C)  $2.14. 
D)  $2.17. 
A)  $1.86. 
B)  $2.50. 
C)  $2.14. 
D)  $2.17.

Question 10

The first step in determining total manufacturing costs is to calculate:

Accepted Answer

A)  the raw material used for the month. 
B)  the direct labor cost for the month. 
C)  factory overhead cost for the month. 
D)  finished inventory - ending balance. 
A)  the raw material used for the month. 
B)  the direct labor cost for the month. 
C)  factory overhead cost for the month. 
D)  finished inventory - ending balance.

Question 11

The following data are available for Jefferson Company.   Required:
a. Compute the predetermined rate based on direct labor hours.
b. Prepare the journal entry to record the applied overhead for the month of May.

Accepted Answer

The answer of The following data are available for Jefferson...

Question 12

Calculate the cost of goods sold when beginning finished goods inventory equals $87,000, ending finished goods inventory $75,000, and cost of goods manufactured $640,000.

Accepted Answer

A)  $652,000 
B)  $482,000 
C)  $727,000 
D)  $628,000 
A)  $652,000 
B)  $482,000 
C)  $727,000 
D)  $628,000

Question 13

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 14

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 15

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

Accepted Answer

A)  credit to Raw Materials Inventory. 
B)  credit to Supplies. 
C)  debit to Work-in-Process Inventory. 
D)  Both A and C 
A)  credit to Raw Materials Inventory. 
B)  credit to Supplies. 
C)  debit to Work-in-Process Inventory. 
D)  Both A and C

Question 16

From the following, calculate the cost of raw materials used, total manufacturing costs and cost of goods manufactured:

Accepted Answer

Materials Used: $33,000 (14,00

Question 17

The steps of the accounting cycle for a manufacturing company are different from those used for a merchandise company.

Accepted Answer

A) True 
 B)False

Question 18

Direct labor for the month is $52,000, and overhead is applied based on direct labor cost. Annual overhead is estimated to be $530,000, and annual direct labor is estimated to be $810,000. What is the entry to apply overhead to production? (Round intermediary calculations to two decimal places and your final calculations to the nearest whole dollar.)

Accepted Answer

A)  Debit Work-in-Process Inventory $33,800; credit Payroll Payable $33,800 
B)  Debit Manufacturing Overhead-Applied $33,800; credit Work-in-Process Inventory $33,800 
C)  Debit Work-in-Process Inventory $33,800 credit Manufacturing Overhead-Applied $33,800 
D)  Debit Work-in-Process Inventory $52,000; credit Manufacturing Overhead-Applied $52,000 
A)  Debit Work-in-Process Inventory $33,800; credit Payroll Payable $33,800 
B)  Debit Manufacturing Overhead-Applied $33,800; credit Work-in-Process Inventory $33,800 
C)  Debit Work-in-Process Inventory $33,800 credit Manufacturing Overhead-Applied $33,800 
D)  Debit Work-in-Process Inventory $52,000; credit Manufacturing Overhead-Applied $52,000

Question 19

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).
-

Accepted Answer

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

Question 20

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

Accepted Answer

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

Exam 25: Manufacturing Accounting

One way to determine an overhead application rate is to divide estimated annual overhead costs by estimated annual direct labor hours.

From the following, calculate the cost of raw materials used and total manufacturing costs:

The journal entry to record the direct labor summarized on the labor distribution report would include a:

Ending finished goods inventory is subtracted from cost of goods available for sale to get:

What inventories are included in determining total manufacturing costs?

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

The overhead application rate may be based on:

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). -

The estimated manufacturing overhead cost was $26,000 and estimated machine hours were 14,000. Actual manufacturing overhead cost was $30,000 and actual machine hours were 12,000. The overhead application rate per hour based on machine hours is: (Round your answer to the nearest cent.)

The first step in determining total manufacturing costs is to calculate:

The following data are available for Jefferson Company. Required: a. Compute the predetermined rate based on direct labor hours. b. Prepare the journal entry to record the applied overhead for the month of May.

Calculate the cost of goods sold when beginning finished goods inventory equals $87,000, ending finished goods inventory $75,000, and cost of goods manufactured $640,000.

The Manufacturing Overhead-Control account is used for the:

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

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

From the following, calculate the cost of raw materials used, total manufacturing costs and cost of goods manufactured:

The steps of the accounting cycle for a manufacturing company are different from those used for a merchandise company.

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). -

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

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

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