Question 1

Hourly wages of production line employees are one of the costs included in the manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Calculate the cost of goods manufactured from the following information.

Accepted Answer

$153,000 (63,000 + 7

Question 4

Journal entries crediting Payroll Payable and debiting Work-in-Process Inventory are made for:

Accepted Answer

A)  administrative salaries. 
B)  hourly manufacturing labor. 
C)  foremen's salaries. 
D)  raw materials. 
A)  administrative salaries. 
B)  hourly manufacturing labor. 
C)  foremen's salaries. 
D)  raw materials.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

If the overhead applied rate based on direct labor hours is $10.00 and the actual labor hours are 520, what is the amount credited to Manufacturing Overhead-Applied?

Accepted Answer

A)  $5,200 
B)  $520 
C)  $52,000 
D)  None of the above 
A)  $5,200 
B)  $520 
C)  $52,000 
D)  None of the above

Question 7

Cost of Goods Sold is debited after items have been sold.

Accepted Answer

A) True 
 B)False

Question 8

Classify each of the following as raw materials, direct labor, or overhead:

Accepted Answer

The answer of Classify each of the following as raw...

Question 9

The bill of lading is a formal document issued to the carrier for shipping the finished product to a customer.

Accepted Answer

A) True 
 B)False

Question 10

Finished goods inventory is listed on the schedule of cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 11

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 12

The formula for cost of goods manufactured is:

Accepted Answer

A)  raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
B)  raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
C)  beginning work-in-process plus total manufacturing cost minus ending work-in-process. 
D)  raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory. 
A)  raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
B)  raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
C)  beginning work-in-process plus total manufacturing cost minus ending work-in-process. 
D)  raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory.

Question 13

The adjustment for factory depreciation expense was ignored. This error will cause:

Accepted Answer

A)  the cost of goods manufactured to be overstated. 
B)  the cost of goods sold to be understated. 
C)  the net income to be understated. 
D)  the cost of goods manufacturing to be understated. 
A)  the cost of goods manufactured to be overstated. 
B)  the cost of goods sold to be understated. 
C)  the net income to be understated. 
D)  the cost of goods manufacturing to be understated.

Question 14

The work-in-process ending inventory was overstated. This error will cause:

Accepted Answer

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

Question 15

Work-in-Process is debited and Payroll is credited when supervisor pay is charged to production.

Accepted Answer

A) True 
 B)False

Question 16

A clock card is:

Accepted Answer

A)  the basis for payroll. 
B)  the basis for charging cost of goods sold. 
C)  a document to show movement of materials. 
D)  a document used to order materials. 
A)  the basis for payroll. 
B)  the basis for charging cost of goods sold. 
C)  a document to show movement of materials. 
D)  a document used to order materials.

Question 17

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

Accepted Answer

The answer of Which of the following journal entries would...

Question 18

Given the following accounts:
-Issued raw materials to production.
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

Given the following accounts:
-Issued supplies to production.
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 20

The balance sheet reports the work in process inventory.

Accepted Answer

A) True 
 B)False

Exam 25: Manufacturing Accounting

Hourly wages of production line employees are one of the costs included in the manufacturing overhead.

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). -

Calculate the cost of goods manufactured from the following information.

Journal entries crediting Payroll Payable and debiting Work-in-Process Inventory are made for:

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

If the overhead applied rate based on direct labor hours is $10.00 and the actual labor hours are 520, what is the amount credited to Manufacturing Overhead-Applied?

Cost of Goods Sold is debited after items have been sold.

Classify each of the following as raw materials, direct labor, or overhead:

The bill of lading is a formal document issued to the carrier for shipping the finished product to a customer.

Finished goods inventory is listed on the schedule of 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). -

The formula for cost of goods manufactured is:

The adjustment for factory depreciation expense was ignored. This error will cause:

The work-in-process ending inventory was overstated. This error will cause:

Work-in-Process is debited and Payroll is credited when supervisor pay is charged to production.

A clock card is:

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

Given the following accounts: -Issued raw materials to production. Debit ________ Credit ________

Given the following accounts: -Issued supplies to production. Debit ________ Credit ________

The balance sheet reports the work in process inventory.

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: -Issued raw materials to production. Debit Credit

Given the following accounts: -Issued supplies to production. Debit Credit