Question 1

An adjusting entry to accrue salaries and wage expenses incurred, but not yet recorded is required prior to closing out a reporting period.

Accepted Answer

A) True 
 B)False

Question 2

The total cost of a manufactured item includes direct materials, direct labor and manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 3

Amounts paid to factory repair and maintenance employees are considered direct labor.

Accepted Answer

A) True 
 B)False

Question 4

Indirect labor for a manufacturing business includes the wages of:

Accepted Answer

A) employees who sell the product. 
B) employees who assemble the product. 
C) factory repair and maintenance employees. 
D) office employees. 
A) employees who sell the product. 
B) employees who assemble the product. 
C) factory repair and maintenance employees. 
D) office employees.

Question 5

Selected account balances for Reed Manufacturing Company on December 31, 2019, the end of the fiscal year, are given below. Data about the beginning and ending inventories are also given. The company uses a periodic inventory system. Record the adjusting entries for the inventory

Accepted Answer

The answer of Selected account balances for Reed Manufacturing Company...

Question 6

The balance of the Manufacturing Summary account is closed into:

Accepted Answer

A) Retained Earnings. 
B) Cost of Goods Manufactured. 
C) Income Summary. 
D) Manufacturing Overhead. 
A) Retained Earnings. 
B) Cost of Goods Manufactured. 
C) Income Summary. 
D) Manufacturing Overhead.

Question 7

Wages paid to the factory maintenance and repair personnel of a manufacturing business are shown:

Accepted Answer

A) as part of Manufacturing Overhead on the statement cost of goods manufactured. 
B) as Direct Labor on the statement of cost goods manufactured. 
C) in the Operating Expenses section of the income statement. 
D) as a part of the Cost of Goods Sold section of the income statement. 
A) as part of Manufacturing Overhead on the statement cost of goods manufactured. 
B) as Direct Labor on the statement of cost goods manufactured. 
C) in the Operating Expenses section of the income statement. 
D) as a part of the Cost of Goods Sold section of the income statement.

Question 8

Calculate the cost of goods manufactured from the information given:
$\begin{array}{lr}
\text { Ending Work in Process } & \$ 1,200 \
\text { Manufacturing overhead } & 14,000 \
\text { Selling expense } & 7,000 \
\text { Beginning Work in process } & 10,400 \
\text { Raw materials used (direct) } & 5,700 \
\text { Administrative expense } & 10,000 \
\text { Direct labor } & 7,600
\end{array}$

Accepted Answer

A) $24,500. 
B) $27,300. 
C) $30,100. 
D) $47,100. 
A) $24,500. 
B) $27,300. 
C) $30,100. 
D) $47,100.

Question 9

Products that are partially completed are considered work in process.

Accepted Answer

A) True 
 B)False

Question 10

Whaler utilizes automated machines to sew sails for its whaling ships. The manufacturing records indicate the Model Z7B sail uses $4,140 of fabric, requires 3 direct labor hours to finish and tie off threads and 8 hours of machine sewing time. The direct labor rate averages $14.00 per hour. Manufacturing overhead is added to the product cost of a sail based on a rate of $45 per machine hour. The company applies a 30% markup on cost. What is the sales price of a Model Z7B sail?

Accepted Answer

A) $4,542.00. 
B) $5,382.00. 
C) $5,612.10. 
D) $5,904.60. 
A) $4,542.00. 
B) $5,382.00. 
C) $5,612.10. 
D) $5,904.60.

Question 11

Stellar Manufacturing had a beginning raw materials inventory of $235,000. The firm had net purchases of $636,000 for the period and an ending raw materials inventory of $199,000. What was the cost of raw materials used?

Accepted Answer

The answer of Stellar Manufacturing had a beginning raw materials...

Question 12

Selected account balances for Reed Manufacturing Company on December 31, 2019, the end of the fiscal year, are given below. Data about the beginning and ending inventories are also given.
Use this information to prepare a statement of cost of goods manufactured and an income statement for 2019.
   
Raw Materials Inventory 27,000 25,000

Accepted Answer

REED MANUFACTURING COMPANY
Sta

Question 13

Fill in the missing line items on the Statement of Cost of Goods Manufactured given. Include corre indentations, underlines, dates, and capitalization when needed.
Paige Products
Statement of Cost of Goods Manufactured Year Ended December 31, 2019

Accepted Answer

Paige Products
State

Question 14

The raw materials inventory, the work in process inventory, and the finished goods inventory are all shown in the Current Assets section of the balance sheet.

Accepted Answer

A) True 
 B)False

Exam 26: Accounting for Manufacturing Activities

An adjusting entry to accrue salaries and wage expenses incurred, but not yet recorded is required prior to closing out a reporting period.

The total cost of a manufactured item includes direct materials, direct labor and manufacturing overhead.

Amounts paid to factory repair and maintenance employees are considered direct labor.

Indirect labor for a manufacturing business includes the wages of:

Selected account balances for Reed Manufacturing Company on December 31, 2019, the end of the fiscal year, are given below. Data about the beginning and ending inventories are also given. The company uses a periodic inventory system. Record the adjusting entries for the inventory

The balance of the Manufacturing Summary account is closed into:

Wages paid to the factory maintenance and repair personnel of a manufacturing business are shown:

Calculate the cost of goods manufactured from the information given: Ending Work in Process \ 1,200 Manufacturing overhead 14,000 Selling expense 7,000 Beginning Work in process 10,400 Raw materials used (direct) 5,700 Administrative expense 10,000 Direct labor 7,600

Products that are partially completed are considered work in process.

Stellar Manufacturing had a beginning raw materials inventory of $235,000. The firm had net purchases of $636,000 for the period and an ending raw materials inventory of $199,000. What was the cost of raw materials used?

Fill in the missing line items on the Statement of Cost of Goods Manufactured given. Include corre indentations, underlines, dates, and capitalization when needed. Paige Products Statement of Cost of Goods Manufactured Year Ended December 31, 2019

The raw materials inventory, the work in process inventory, and the finished goods inventory are all shown in the Current Assets section of the balance sheet.

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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