Question 1

Finished Goods 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 2

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 3

Journal entries crediting Payroll 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 4

The estimated manufacturing overhead cost was $20,000 and estimated machine hours were 10,000.Actual manufacturing overhead cost was $22,000 and actual machine hours were 12,000.The overhead application rate per hour based on machine hours is:

Accepted Answer

A) $1.83. 
B) $2.00. 
C) $4.00. 
D) $5.00. 
A) $1.83. 
B) $2.00. 
C) $4.00. 
D) $5.00.

Question 5

The entry for indirect materials (such as glue,etc.)requisitioned for use in production is:

Accepted Answer

A)  $\begin{array}{|l|lcc|}
\hline \text {Raw Materials Inventory}\
\hline \text {Work-in-Process Inventory}\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Accounts Payable}\
\hline 
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Raw Materials Inventory}\
\hline 
\end{array}$ 
D) None of these answers are correct. 
A)  $\begin{array}{|l|lcc|}
\hline \text {Raw Materials Inventory}\
\hline \text {Work-in-Process Inventory}\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Accounts Payable}\
\hline 
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Raw Materials Inventory}\
\hline 
\end{array}$ 
D) None of these answers are correct.

Question 6

Lumber used in construction of a building is part of:

Accepted Answer

A) raw material costs. 
B) labor costs. 
C) manufacturing overhead. 
D) None of these answers are correct. 
A) raw material costs. 
B) labor costs. 
C) manufacturing overhead. 
D) None of these answers are correct.

Question 7

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).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Factory rent } \
\text { expense }
\end{array} & & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | c | c | c | c |

Question 8

What is the journal entry to record issuing raw materials from the storeroom?

Accepted Answer

A) Debit Raw Materials Inventory; Credit Work-in-Process 
B) Debit Overhead-Control; Credit Work-in-Process 
C) Debit Work-in-Process; Credit Overhead-Control 
D) Debit Work-in-Process; Credit Raw Materials Inventory 
A) Debit Raw Materials Inventory; Credit Work-in-Process 
B) Debit Overhead-Control; Credit Work-in-Process 
C) Debit Work-in-Process; Credit Overhead-Control 
D) Debit Work-in-Process; Credit Raw Materials Inventory

Question 9

The statement of cost of goods manufactured does not include:

Accepted Answer

A) direct labor costs. 
B) raw material costs. 
C) manufacturing overhead. 
D) All of the above are included. 
A) direct labor costs. 
B) raw material costs. 
C) manufacturing overhead. 
D) All of the above are included.

Question 10

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

Accepted Answer

A) the raw material cost for the month. 
B) the direct labor cost for the month. 
C) factory overhead cost for the month. 
D) None of these answers are correct. 
A) the raw material cost for the month. 
B) the direct labor cost for the month. 
C) factory overhead cost for the month. 
D) None of these answers are correct.

Question 11

Given the following accounts:
[1]Expense accounts.
[2]Accounts receivable
[3]Finished goods inventory.
[4]Work in process inventory.
[5]Raw materials inventory.
[6]Factory supplies inventory.
[7]Overhead applied
[8]Accumulated depreciation factory equipment
[9]Accounts payable.
[10]Payroll
[11]Utilities payable
[12]Sales.
[13]Raw materials purchases.
[14]Overhead-control.
[15]Cost of goods sold.
Indicate the account(s) to be debited and credited to record the following transactions.
-Charged direct labor to production.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Given the following accounts:
[1]Expense accounts.
[2]Accounts receivable
[3]Finished goods...

Question 12

Given the following accounts:
[1]Expense accounts.
[2]Accounts receivable
[3]Finished goods inventory.
[4]Work in process inventory.
[5]Raw materials inventory.
[6]Factory supplies inventory.
[7]Overhead applied
[8]Accumulated depreciation factory equipment
[9]Accounts payable.
[10]Payroll
[11]Utilities payable
[12]Sales.
[13]Raw materials purchases.
[14]Overhead-control.
[15]Cost of goods sold.
Indicate the account(s) to be debited and credited to record the following transactions.
-Issued raw materials to production.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Given the following accounts:
[1]Expense accounts.
[2]Accounts receivable
[3]Finished goods...

Question 13

If a company had a beginning balance of $5,000 in Work-in-Process Inventory,an ending balance of $7,000 and incurred direct labor costs of $8,000 and overhead costs of $4,000,then the cost of goods manufactured during the month was $24,000.

Accepted Answer

A) True 
 B)False

Question 14

Raw material 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 15

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).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Work in process } & & & & \
\hline \text { inventory } & & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | c | c | l | c |

Question 16

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 17

Freight costs to bring the raw materials in should be charged to:

Accepted Answer

A) Work-in-Process Inventory. 
B) Cost of Goods Sold. 
C) Raw Materials Inventory. 
D) Manufacturing overhead. 
A) Work-in-Process Inventory. 
B) Cost of Goods Sold. 
C) Raw Materials Inventory. 
D) Manufacturing overhead.

Question 18

The following data are available for Skyway: $$\begin{array} { | l | l | } 
\hline \text { Estimated machine hours } & 45,000 \text { hours } \
\hline \text { Estimated overhead costs } & \$ 90,000 \
\hline
\end{array}$$ If overhead is applied based on machine hours,the predetermined overhead rate is:

Accepted Answer

A) $2.00. 
B) $20.00. 
C) $0.50. 
D) 200%. 
A) $2.00. 
B) $20.00. 
C) $0.50. 
D) 200%.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Cost of Goods Sold is debited after items have been sold from the finished goods inventory.

Accepted Answer

A) True 
 B)False

Exam 25: Manufacturing Accounting

Finished Goods Inventory appears on which of the following statements on the worksheet?

A clock card is:

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

The estimated manufacturing overhead cost was $20,000 and estimated machine hours were 10,000.Actual manufacturing overhead cost was $22,000 and actual machine hours were 12,000.The overhead application rate per hour based on machine hours is:

The entry for indirect materials (such as glue,etc.)requisitioned for use in production is:

Lumber used in construction of a building is part of:

What is the journal entry to record issuing raw materials from the storeroom?

The statement of cost of goods manufactured does not include:

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

If a company had a beginning balance of $5,000 in Work-in-Process Inventory,an ending balance of $7,000 and incurred direct labor costs of $8,000 and overhead costs of $4,000,then the cost of goods manufactured during the month was $24,000.

Raw material inventory appears on the:

A material requisition is a:

Freight costs to bring the raw materials in should be charged to:

The following data are available for Skyway: Estimated machine hours 45,000 hours Estimated overhead costs \ 90,000 If overhead is applied based on machine hours,the predetermined overhead rate is:

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

Cost of Goods Sold is debited after items have been sold from the finished goods 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: The Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Filters