Question 1

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 2

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

Accepted Answer

A)  debit to Manufacturing Overhead-Applied. 
B)  credit to Raw Materials Inventory. 
C)  credit to Manufacturing Overhead-Applied. 
D)  debit to Manufacturing Overhead-Control. 
A)  debit to Manufacturing Overhead-Applied. 
B)  credit to Raw Materials Inventory. 
C)  credit to Manufacturing Overhead-Applied. 
D)  debit to Manufacturing Overhead-Control.

Question 3

A manufacturing company will have a new set of columns on the worksheet for the:

Accepted Answer

A)  statement of finished goods. 
B)  statement of work-in-process inventories. 
C)  statement of cost of goods sold. 
D)  statement of cost of goods manufactured. 
A)  statement of finished goods. 
B)  statement of work-in-process inventories. 
C)  statement of cost of goods sold. 
D)  statement of cost of goods manufactured.

Question 4

A report issued by the payroll department to categorize all the types of labor incurred during the week is a:

Accepted Answer

A)  labor distribution report. 
B)  receiving report. 
C)  payable register. 
D)  None of these answers is correct. 
A)  labor distribution report. 
B)  receiving report. 
C)  payable register. 
D)  None of these answers is correct.

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

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

Accepted Answer

A) True 
 B)False

Question 7

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 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

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

Question 10

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 11

The following data are available for Starbrite Corporation:   If overhead is applied based on direct labor hours, the predetermined overhead rate is: (Round your answer to the nearest cent.)

Accepted Answer

A)  $20.91. 
B)  $29.00. 
C)  $209.13. 
D)  $290.00. 
A)  $20.91. 
B)  $29.00. 
C)  $209.13. 
D)  $290.00.

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).
-

Accepted Answer

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

Question 13

Overhead includes labor costs of assembly line supervisors but not the assembly workers.

Accepted Answer

A) True 
 B)False

Question 14

The purchase of direct materials was recorded as the purchase of office supplies. 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)  the office supplies to be overstated. 
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)  the office supplies to be overstated.

Question 15

The Overhead-Applied account is used for the:

Accepted Answer

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

Question 16

Raw Materials Inventory appears on the:

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  cost of goods manufactured statement. 
D)  Both A and C are correct. 
A)  balance sheet. 
B)  income statement. 
C)  cost of goods manufactured statement. 
D)  Both A and C are correct.

Question 17

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 18

Given the following accounts:
-Purchased raw materials on account.
Debit ________ Credit ________

Accepted Answer

A) Expense accounts. 
B) Accounts receivable 
C) Finished goods inventory. 
D) Work in process inventory. 
E) Raw materials inventory.
F)Factory supplies inventory.
G)Manufacturing overhead applied
H)Depreciation expense
I)Accounts payable.
J)Payroll payable
K)Utilities expense
L)Sales.
M)Raw materials purchases.
N)Manufacturing overhead-control.
O)Cost of goods sold.
Indicate the account(s) to be debited and credited to record the following transactions. 
A) Expense accounts. 
B) Accounts receivable 
C) Finished goods inventory. 
D) Work in process inventory. 
E) Raw materials inventory.
F)Factory supplies inventory.
G)Manufacturing overhead applied
H)Depreciation expense
I)Accounts payable.
J)Payroll payable
K)Utilities expense
L)Sales.
M)Raw materials purchases.
N)Manufacturing overhead-control.
O)Cost of goods sold.
Indicate the account(s) to be debited and credited to record the following transactions.

Question 19

The three major manufacturing inventories do NOT include which of the following?

Accepted Answer

A)  Supplies 
B)  Work-in-process 
C)  Raw materials 
D)  Finished goods 
A)  Supplies 
B)  Work-in-process 
C)  Raw materials 
D)  Finished goods

Question 20

Brooks Manufacturing is using a manufacturing overhead application rate of 180% of machine cost. A job uses 43 machine hours at $17/hour. How much overhead should be applied to the job? (Round your answer to the nearest dollar.)

Accepted Answer

A)  $731 
B)  $1,316 
C)  ($1,316) 
D)  ($731) 
A)  $731 
B)  $1,316 
C)  ($1,316) 
D)  ($731)

Exam 25: Manufacturing Accounting

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

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

A manufacturing company will have a new set of columns on the worksheet for the:

A report issued by the payroll department to categorize all the types of labor incurred during the week is a:

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

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

A material requisition is a:

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). -

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

Indirect costs were understated. This error will cause:

The following data are available for Starbrite Corporation: If overhead is applied based on direct labor hours, the predetermined overhead rate is: (Round your answer to the nearest cent.)

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). -

Overhead includes labor costs of assembly line supervisors but not the assembly workers.

The purchase of direct materials was recorded as the purchase of office supplies. This error will cause:

The Overhead-Applied account is used for the:

Raw Materials Inventory appears on the:

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). -

Given the following accounts: -Purchased raw materials on account. Debit ________ Credit ________

The three major manufacturing inventories do NOT include which of the following?

Brooks Manufacturing is using a manufacturing overhead application rate of 180% of machine cost. A job uses 43 machine hours at $17/hour. How much overhead should be applied to the job? (Round your answer to the nearest dollar.)

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

Given the following accounts: -Purchased raw materials on account. Debit Credit