Question 1

Overhead may be applied based on direct labor hours or sales salary expense.

Accepted Answer

A) True 
 B)False

Question 2

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)  document used to identify an inventory location. 
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)  document used to identify an inventory location.

Question 3

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

Accepted Answer

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

Question 4

Which inventory account consists of products currently being processed?

Accepted Answer

A)  Finished Goods Inventory 
B)  Work-in-Process Inventory 
C)  Manufacturing Overhead Inventory 
D)  Supplies expense 
A)  Finished Goods Inventory 
B)  Work-in-Process Inventory 
C)  Manufacturing Overhead Inventory 
D)  Supplies expense

Question 5

The second step in the preparation of the statement of cost of goods manufactured is to add in and subtract out the two raw material inventory balances.

Accepted Answer

A) True 
 B)False

Question 6

Metal used in construction of a tank is part of:

Accepted Answer

A)  raw material costs. 
B)  labor costs. 
C)  manufacturing overhead. 
D)  depreciation expense. 
A)  raw material costs. 
B)  labor costs. 
C)  manufacturing overhead. 
D)  depreciation expense.

Question 7

From the following information calculate total manufacturing costs and cost of goods manufactured.

Accepted Answer

Total manufacturing

Question 8

Work in Process Inventory appears on which of the following statements on the worksheet?

Accepted Answer

A)  Statement of cost of goods manufactured and income statement 
B)  Statement of cost of goods manufactured and balance sheet 
C)  Income statement and balance sheet 
D)  Income statement and cost of goods sold statement 
A)  Statement of cost of goods manufactured and income statement 
B)  Statement of cost of goods manufactured and balance sheet 
C)  Income statement and balance sheet 
D)  Income statement and cost of goods sold statement

Question 9

Record in general journal form the following transactions for Max Manufacturing:
Feb. 4 Raw materials of $15,000 were issued from the storeroom.
Feb. 7 Charged $25,000 of direct labor to production.
Feb. 10 Supplies costing $6,000 were issued from the storeroom.
Feb. 15 The following expenses were charged to overhead: depreciation $5,000,
rent $4,000, and electricity $1,500.
Feb. 20 Overhead was applied at 75% of direct labor dollars.
Feb. 21 Transferred completed goods costing $8,000 to finished goods.

Accepted Answer

The answer of Record in general journal form the following...

Question 10

Paint used in painting the final product would be considered work-in-process inventory.

Accepted Answer

A) True 
 B)False

Question 11

Jackson Manufacturing is using a manufacturing overhead application rate of 130% of direct labor dollars. A job uses 17 direct labor hours at $27 per hour. How much overhead should be applied to the job? (Round your answer to the nearest dollar.)

Accepted Answer

A)  $353 
B)  $298 
C)  $597 
D)  $459 
A)  $353 
B)  $298 
C)  $597 
D)  $459

Question 12

From the following transactions, prepare the appropriate general journal entries for the month of April.
a. Raw materials costing $72,000 were issued from the storeroom.
b. Direct labor of $42,000 was charged to production.
c. Indirect labor costs of $17,000 were incurred.
d. Overhead was applied at the rate of 40% of direct labor dollars.
e. Completed products costing $38,000 were transferred to finished goods.
f. Products costing $32,000 were sold for $50,000 on account.

Accepted Answer

The answer of From the following transactions, prepare the appropriate...

Question 13

The entry to record selling a product that cost $22,000 would be a credit to Finished Goods Inventory $22,000, and a debit to Cost of Goods Sold $22,000.

Accepted Answer

A) True 
 B)False

Question 14

Factory Supplies Expense, Depreciation Expense-Factory, and Heat, Light, and Power-Factory appear on which section of the worksheet?

Accepted Answer

A)  Statement of cost of goods manufactured 
B)  Statement of Stockholders' Equity 
C)  Income statement 
D)  Statement of cost of goods sold 
A)  Statement of cost of goods manufactured 
B)  Statement of Stockholders' Equity 
C)  Income statement 
D)  Statement of cost of goods sold

Question 15

Work in Process inventory includes the total costs of manufacturing a product.

Accepted Answer

A) True 
 B)False

Question 16

If direct labor for the month is $105,000, and overhead is applied based on 65% of direct labor dollars, what is the entry to apply overhead?

Accepted Answer

A)  Debit Work-in-Process Inventory $68,250; credit Payroll Payable $68,250 
B)  Debit Overhead-Applied $68,250; credit Work-in-Process Inventory $68,250 
C)  Debit Work-in-Process Inventory $68,250; credit Manufacturing Overhead-Applied $68,250 
D)  Debit Work-in-Process Inventory $105,000; credit Manufacturing Overhead-Applied $105,000 
A)  Debit Work-in-Process Inventory $68,250; credit Payroll Payable $68,250 
B)  Debit Overhead-Applied $68,250; credit Work-in-Process Inventory $68,250 
C)  Debit Work-in-Process Inventory $68,250; credit Manufacturing Overhead-Applied $68,250 
D)  Debit Work-in-Process Inventory $105,000; credit Manufacturing Overhead-Applied $105,000

Question 17

The three manufacturing inventories are raw materials, work-in-process, and finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 18

Under a perpetual inventory system, freight costs to bring the raw materials in should be charged to:

Accepted Answer

A)  Work-in-Process Inventory. 
B)  Delivery Expense. 
C)  Raw Materials Inventory. 
D)  Manufacturing overhead. 
A)  Work-in-Process Inventory. 
B)  Delivery Expense. 
C)  Raw Materials Inventory. 
D)  Manufacturing overhead.

Question 19

What inventories are included in determining the cost of goods sold?

Accepted Answer

A)  Beginning and ending finished goods 
B)  Beginning and ending raw materials 
C)  Beginning and ending work-in-process 
D)  Supplies. 
A)  Beginning and ending finished goods 
B)  Beginning and ending raw materials 
C)  Beginning and ending work-in-process 
D)  Supplies.

Question 20

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...

Exam 25: Manufacturing Accounting

Overhead may be applied based on direct labor hours or sales salary expense.

A lot ticket is a:

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

Which inventory account consists of products currently being processed?

The second step in the preparation of the statement of cost of goods manufactured is to add in and subtract out the two raw material inventory balances.

Metal used in construction of a tank is part of:

From the following information calculate total manufacturing costs and cost of goods manufactured.

Work in Process Inventory appears on which of the following statements on the worksheet?

Paint used in painting the final product would be considered work-in-process inventory.

Jackson Manufacturing is using a manufacturing overhead application rate of 130% of direct labor dollars. A job uses 17 direct labor hours at $27 per hour. How much overhead should be applied to the job? (Round your answer to the nearest dollar.)

The entry to record selling a product that cost $22,000 would be a credit to Finished Goods Inventory $22,000, and a debit to Cost of Goods Sold $22,000.

Factory Supplies Expense, Depreciation Expense-Factory, and Heat, Light, and Power-Factory appear on which section of the worksheet?

Work in Process inventory includes the total costs of manufacturing a product.

If direct labor for the month is $105,000, and overhead is applied based on 65% of direct labor dollars, what is the entry to apply overhead?

The three manufacturing inventories are raw materials, work-in-process, and finished goods inventory.

Under a perpetual inventory system, freight costs to bring the raw materials in should be charged to:

What inventories are included in determining the cost of goods sold?

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). -

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