Question 1

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) None of these answers are correct. 
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) None of these answers are correct.

Question 2

A document that is prepared to show how items have been shipped to customers is a:

Accepted Answer

A) receiving report. 
B) bill of lading. 
C) lot tickets. 
D) clock card. 
A) receiving report. 
B) bill of lading. 
C) lot tickets. 
D) clock card.

Question 3

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) None of these answers are correct. 
A) Beginning and ending finished goods 
B) Beginning and ending raw materials 
C) Beginning and ending work-in-process 
D) None of these answers are correct.

Question 4

The balance sheet contains all three manufacturing inventories.

Accepted Answer

A) True 
 B)False

Question 5

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).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Raw materials } & & & & \
\text { purchases } & & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 6

From the following,calculate the cost of raw materials used and total manufacturing costs:
$$\begin{array} { l l } 
\text { Raw Materials Inventory, 5ep. 1 } & \$ 4,000 \
\text { Raw Materials Inventory, 5ep. 30 } & 5,000 \
\text { Work-in-Process inventory, 5ep. 1 } & 6,000 \
\text { Work-in-Process Inventory, 5ep. 30 } & 5,000 \
\text { Raw Materials Purchased } & 8,000 \
\text { Direct Labor } & 9,000 \
\text { Depreciation Expense } & 7,000 \
\text { Factory Utilities } & 3,000
\end{array}$$

Accepted Answer

Raw Materials used: $7,000 (4,

Question 7

One way to determine an overhead application rate is to divide estimated annual overhead by estimated annual direct labor dollars.

Accepted Answer

A) True 
 B)False

Question 8

Candyland completed the manufacturing process.The entry to transfer the product to finished goods is:

Accepted Answer

A)  $\begin{array}{|l|lcc|}
\hline \text {Raw Materials Inventory}\
\hline \text {Finished Goods Inventory}\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline \text {Finished Goods Inventory}\
\hline \text {Cost of Goods Sold}\
\hline 
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline \text {Finished Goods Inventory}\
\hline \text {Work-in-Process Inventory}\
\hline 
\end{array}$ 
D)  $\begin{array}{|l|lcc|}
\hline \text {Finished Goods Inventory}\
\hline \text {Raw Materials Inventory}\
\hline 
\end{array}$ 
A)  $\begin{array}{|l|lcc|}
\hline \text {Raw Materials Inventory}\
\hline \text {Finished Goods Inventory}\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline \text {Finished Goods Inventory}\
\hline \text {Cost of Goods Sold}\
\hline 
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline \text {Finished Goods Inventory}\
\hline \text {Work-in-Process Inventory}\
\hline 
\end{array}$ 
D)  $\begin{array}{|l|lcc|}
\hline \text {Finished Goods Inventory}\
\hline \text {Raw Materials Inventory}\
\hline 
\end{array}$

Question 9

From the following information calculate total manufacturing costs and cost of goods manufactured.
$$\begin{array} { l l } 
\text { Raw Materials Inventory, 5ep. 1 } & \$ 3,000 \
\text { Raw Materials Inventory, 5ep. 30 } & 4,000 \
\text { Work-in-Process inventory, 5ep. 1 } & 5,000 \
\text { Work-in-Process Inventory, 5ep. 30 } & 4,000 \
\text { Raw Materials Purchased } & 7,000 \
\text { Direct Labor } & \mathbf { 8 } , 000 \
\text { Depreciation Expense } & \mathbf { 6 } , 000 \
\text { Factory Utilities } & 2,000
\end{array}$$

Accepted Answer

Total manufacturing

Question 10

The following data are available for Starbrite Corporation: $$\begin{array} { | l | l | } 
\hline \text { Estimated direct labor hours } & 800 \
\hline \text { Estimated overhead } & \$ 36,000 \
\hline
\end{array}$$ If overhead is applied based on direct labor hours,the predetermined overhead rate is:

Accepted Answer

A) $45. 
B) $450. 
C) $222. 
D) $2,220. 
A) $45. 
B) $450. 
C) $222. 
D) $2,220.

Question 11

Describe the three elements of manufacturing cost.

Accepted Answer

The three elements of manufacturing cost

Question 12

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

Accepted Answer

None

Question 13

The bill of lading shows the cost of materials put into raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 14

The adjustment for factory depreciation 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) Answers A and C are correct. 
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) Answers A and C are correct.

Question 15

The entry to record selling a product that cost $14,000 would be a credit to Finished Goods Inventory $14,000,and a debit to Cost of Goods Sold $14,000.

Accepted Answer

A) True 
 B)False

Question 16

Adams Manufacturing has estimated manufacturing overhead at $72,000 and has estimated direct labor of 10,000 direct labor hours at $9.00 per hour.The overhead rate per direct labor dollar would be:

Accepted Answer

A) $0.80 
B) $8.00. 
C) $1.25. 
D) $7.20. 
A) $0.80 
B) $8.00. 
C) $1.25. 
D) $7.20.

Question 17

Ending finished goods inventory is subtracted from ________ to get cost of goods sold.

Accepted Answer

A) cost of goods available for sale 
B) cost of goods manufactured 
C) net purchases 
D) none of the above 
A) cost of goods available for sale 
B) cost of goods manufactured 
C) net purchases 
D) none of the above

Question 18

The entry to record rent expense $9,000,supervision expense $19,000,and depreciation expense $7,000 to overhead is:

Accepted Answer

A) debit Overhead-Applied $35,000; credit Rent Expense $9,000,Supervision $19,000,Depreciation Expense $7,000. 
B) debit Overhead-Control $35,000; credit Rent Expense $9,000,Supervision $19,000,Depreciation Expense $7,000. 
C) debit Overhead-Applied $35,000; credit Overhead-Control $35,000. 
D) None of these answers are correct. 
A) debit Overhead-Applied $35,000; credit Rent Expense $9,000,Supervision $19,000,Depreciation Expense $7,000. 
B) debit Overhead-Control $35,000; credit Rent Expense $9,000,Supervision $19,000,Depreciation Expense $7,000. 
C) debit Overhead-Applied $35,000; credit Overhead-Control $35,000. 
D) None of these answers are correct.

Question 19

The direct costs were 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 overstated. 
D) None of these answers is 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 overstated. 
D) None of these answers is correct.

Question 20

Lumber used in a furniture plant would be considered raw materials inventory.

Accepted Answer

A) True 
 B)False

Exam 25: Manufacturing Accounting

A lot ticket is a:

A document that is prepared to show how items have been shipped to customers is a:

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

The balance sheet contains all three manufacturing inventories.

One way to determine an overhead application rate is to divide estimated annual overhead by estimated annual direct labor dollars.

Candyland completed the manufacturing process.The entry to transfer the product to finished goods is:

The following data are available for Starbrite Corporation: Estimated direct labor hours 800 Estimated overhead \ 36,000 If overhead is applied based on direct labor hours,the predetermined overhead rate is:

Describe the three elements of manufacturing cost.

The bill of lading shows the cost of materials put into raw materials inventory.

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

The entry to record selling a product that cost $14,000 would be a credit to Finished Goods Inventory $14,000,and a debit to Cost of Goods Sold $14,000.

Adams Manufacturing has estimated manufacturing overhead at $72,000 and has estimated direct labor of 10,000 direct labor hours at $9.00 per hour.The overhead rate per direct labor dollar would be:

Ending finished goods inventory is subtracted from ________ to get cost of goods sold.

The entry to record rent expense $9,000,supervision expense $19,000,and depreciation expense $7,000 to overhead is:

The direct costs were overstated.This error will cause:

Lumber used in a furniture plant would be considered raw materials 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