Question 1

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) flow chart. 
D) None of these answers are correct. 
A) labor distribution report. 
B) receiving report. 
C) flow chart. 
D) None of these answers are correct.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

From the following,calculate the cost of raw materials used,total manufacturing costs and cost of goods manufactured:
$$\begin{array} { l l } 
\text { Rew Materials Inventory, Sep. } 1 & \$ 10,000 \
\text { Rew Materials Inventory, 5ep. 30 } & 6,000 \
\text { Work-in-Process Inventory, 5ep. 1 } & 12,000 \
\text { Work-in-Process Inventory, 5ep. 30 } & 15,000 \
\text { Rew Materials Purchased } & 25,000 \
\text { Direct Labor } & 20,000 \
\text { Depreciation Expense } & 6,000 \
\text { Factory Utilities } & 4,000
\end{array}$$

Accepted Answer

Materials Used: $29,000 (10,00

Question 4

In entries to record the movement of material,labor,and overhead through the operation of a company,the credit is the source and the debit is the destination.

Accepted Answer

A) True 
 B)False

Question 5

Molly Manufacturing is using a manufacturing overhead application rate of 125% of machine hours.Machine hours are $9/hour and uses 35 hours.How much overhead should be applied to the job?

Accepted Answer

A) $315.00 
B) $393.75 
C) ($393.75) 
D) ($315.00) 
A) $315.00 
B) $393.75 
C) ($393.75) 
D) ($315.00)

Question 6

The major difference on the balance sheet of a manufacturing company is to include:

Accepted Answer

A) a retained earnings section. 
B) three inventory accounts,rather than one. 
C) prepaid expenses. 
D) accrued payroll. 
A) a retained earnings section. 
B) three inventory accounts,rather than one. 
C) prepaid expenses. 
D) accrued payroll.

Question 7

If direct labor for the month is $80,000,and overhead is applied based on 75% of direct labor dollars,what is the entry to apply overhead?

Accepted Answer

A) Debit Work-in-Process Inventory $80,000; credit Payroll $80,000 
B) Debit Overhead-Applied $60,000; credit Work-in-Process Inventory $60,000 
C) Debit Work-in-Process Inventory $60,000; credit Overhead-Applied $60,000 
D) Debit Work-in-Process Inventory $80,000; credit Overhead-Applied $80,000 
A) Debit Work-in-Process Inventory $80,000; credit Payroll $80,000 
B) Debit Overhead-Applied $60,000; credit Work-in-Process Inventory $60,000 
C) Debit Work-in-Process Inventory $60,000; credit Overhead-Applied $60,000 
D) Debit Work-in-Process Inventory $80,000; credit Overhead-Applied $80,000

Question 8

A cost of goods manufactured statement should be prepared before the income statement has been prepared.

Accepted Answer

A) True 
 B)False

Question 9

Finished Goods is debited when products are sold and credited when the products are transferred from Work-in-Process.

Accepted Answer

A) True 
 B)False

Question 10

Calculate the (a)cost of raw materials used and (b)total manufacturing costs from the following information.
 $$\begin{array} { l l } 
\text { Eeginning Raw Materials Inventory: } & \$ 65,000 \
\text { Ending Raw Materials Inventory: } & 59,000 \
\text { Overhead: } & 38,000 \
\text { Feginning Finished Goods Inventory: } & 28,000 \
\text { Ending Finished Goods Inventory: } & 23,000 \
\text { Oirect Labor: } & 40,000 \
\text { Raw Materizls Purchased: } & 13,000 \
\text { Feginning Work-in-Thocess Inventory: } & 16,000 \
\text { Ending Work-in-Thoceess Inventory: } & 19,000
\end{array}$$ a.________
b.________

Accepted Answer

a.$89,000 (65,000 +

Question 11

The Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory accounts appear on the manufacturing worksheet in the:

Accepted Answer

A) balance sheet columns. 
B) income statement columns. 
C) statement of cost of goods manufactured. 
D) all of the above. 
A) balance sheet columns. 
B) income statement columns. 
C) statement of cost of goods manufactured. 
D) all of the above.

Question 12

Work-in-Process is credited and Payroll is debited when direct labor is charged to production.

Accepted Answer

A) True 
 B)False

Question 13

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 14

The three main inventories do not include which of the following?

Accepted Answer

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

Question 15

Seascape Interiors produces artist supplies.Listed below are the costs of production and inventory.
 $$\begin{array} { l l } 
\text { Direct Labor } & \$ 60,000 \
\text { Raw Materizls Inventory, Aug. 1 } & 25,000 \
\text { Raw Materials Purchases } & 70,000 \
\text { Rew Materials Inventory, Aug. } 31 & 29,000 \
\text { Overhead } & 50,000 \
\text { Work-in-Process inventory Aug. 1 } & 27,000 \
\text { Work-in-Process Inventory Aug. } 31 & 21,000 \
\text { Finished Goods Inventory Aug. } 31 & 18,000
\end{array}$$ Compute:
a.Cost of raw materials used in production
b.Total manufacturing costs
c.Total cost of goods manufactured

Accepted Answer

a.$66,000 (25,000 + 70,000 - 2

Question 16

If a company had a beginning balance of $5,000 in Finished Goods Inventory,an ending balance of $8,000 and cost of goods manufactured was $47,000 during the month,then the cost of goods sold for the month was $44,000.

Accepted Answer

A) True 
 B)False

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).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Cost of goods } \
\text { sold }
\end{array} & & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 18

Calculate the (a)cost of goods manufactured from the following information.
 $$\begin{array} { l l } 
\text { Eeginning Raw Materials Inventory: } & \$ 63,000 \
\text { Ending Raw Materials Inventory: } & 58,000 \
\text { Overhead: } & 36,000 \
\text { Feginning Finished Goods Inventory: } & 27,000 \
\text { Ending Finished Goods Inventory: } & 32,000 \
\text { Oirect Labor: } & 42,000 \
\text { Raw Materizls Purchased: } & 73,000 \
\text { Feginning Work-in-Thocess Inventory: } & 12,000 \
\text { Ending Work-in-Thoceess Inventory: } & 15,000
\end{array}$$

Accepted Answer

$153,000 (63,000 + 7

Question 19

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) None of these are 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 overstated. 
D) None of these are correct.

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

Accepted Answer

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

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

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

In entries to record the movement of material,labor,and overhead through the operation of a company,the credit is the source and the debit is the destination.

Molly Manufacturing is using a manufacturing overhead application rate of 125% of machine hours.Machine hours are $9/hour and uses 35 hours.How much overhead should be applied to the job?

The major difference on the balance sheet of a manufacturing company is to include:

If direct labor for the month is $80,000,and overhead is applied based on 75% of direct labor dollars,what is the entry to apply overhead?

A cost of goods manufactured statement should be prepared before the income statement has been prepared.

Finished Goods is debited when products are sold and credited when the products are transferred from Work-in-Process.

The Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory accounts appear on the manufacturing worksheet in the:

Work-in-Process is credited and Payroll is debited when direct labor is charged to production.

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

The three main inventories do not include which of the following?

If a company had a beginning balance of $5,000 in Finished Goods Inventory,an ending balance of $8,000 and cost of goods manufactured was $47,000 during the month,then the cost of goods sold for the month was $44,000.

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

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

Exam 25: Manufacturing Accounting

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

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

In entries to record the movement of material,labor,and overhead through the operation of a company,the credit is the source and the debit is the destination.

Molly Manufacturing is using a manufacturing overhead application rate of 125% of machine hours.Machine hours are $9/hour and uses 35 hours.How much overhead should be applied to the job?

The major difference on the balance sheet of a manufacturing company is to include:

If direct labor for the month is $80,000,and overhead is applied based on 75% of direct labor dollars,what is the entry to apply overhead?

A cost of goods manufactured statement should be prepared before the income statement has been prepared.

Finished Goods is debited when products are sold and credited when the products are transferred from Work-in-Process.

The Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory accounts appear on the manufacturing worksheet in the:

Work-in-Process is credited and Payroll is debited when direct labor is charged to production.

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

The three main inventories do not include which of the following?

If a company had a beginning balance of $5,000 in Finished Goods Inventory,an ending balance of $8,000 and cost of goods manufactured was $47,000 during the month,then the cost of goods sold for the month was $44,000.

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

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