Question 1

The steps of the accounting cycle for a manufacturing company are different from those used for a merchandise company.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Issued supplies to production.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Given the following accounts:
   Indicate...

Question 4

Given the following accounts:
   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:
   Indicate...

Question 5

The following data are available for Convoy Trucks:
   Required:
a. Compute the predetermined overhead rate assuming the rate is based on machine hours.
b. Prepare the journal entry to record the applied overhead.

Accepted Answer

The answer of The following data are available for Convoy...

Question 6

During the week ended November 30, total factory payroll incurred was $6,000. Of this total, 80% was for direct labor. The entry to record the payroll distribution would include:

Accepted Answer

A) debit Work-in-Process Inventory for $4,800 and Overhead-Control for $1,200. 
B) debit Work-in-Process Inventory for $6,000. 
C) debit Work-in-Process Inventory for $4,800 and Overhead-Applied for $1,200. 
D) debit Work-in-Process Inventory for $4,800 and Indirect Labor Expense for $1,200. 
A) debit Work-in-Process Inventory for $4,800 and Overhead-Control for $1,200. 
B) debit Work-in-Process Inventory for $6,000. 
C) debit Work-in-Process Inventory for $4,800 and Overhead-Applied for $1,200. 
D) debit Work-in-Process Inventory for $4,800 and Indirect Labor Expense for $1,200.

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).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 8

There was no accrual for the direct labor at the end of the year. 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 understated. 
D) None of these answers is 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 understated. 
D) None of these answers is correct.

Question 9

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

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 10

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 11

Calculate the (a)cost of goods manufactured from the following information.

Accepted Answer

$153,000 (63,000 + 7

Question 12

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 13

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 14

Which inventory account consists of products currently being processed?

Accepted Answer

A) Finished Goods Inventory 
B) Raw Material Inventory 
C) Manufacturing Overhead Inventory 
D) Work-in-Process Inventory 
A) Finished Goods Inventory 
B) Raw Material Inventory 
C) Manufacturing Overhead Inventory 
D) Work-in-Process Inventory

Question 15

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

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 16

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 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).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 18

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 19

The ending inventory for raw materials was understated. 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) Answers A and B 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) Answers A and B are correct.

Question 20

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

Accepted Answer

A)    
B)    
C)    
D) None of these answers are correct. 
A)    
B)    
C)    
D) None of these answers are correct.

Exam 25: Manufacturing Accounting

The steps of the accounting cycle for a manufacturing company are different from those used for a merchandise company.

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

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Issued supplies to production. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Charged direct labor to production. Debit ________ & ________ & ________ Credit ________ & ________ & ________

The following data are available for Convoy Trucks: Required: a. Compute the predetermined overhead rate assuming the rate is based on machine hours. b. Prepare the journal entry to record the applied overhead.

During the week ended November 30, total factory payroll incurred was $6,000. Of this total, 80% was for direct labor. The entry to record the payroll distribution would include:

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). -

There was no accrual for the direct labor at the end of the year. This error will cause:

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

A lot ticket is a:

Calculate the (a)cost of goods manufactured from the following information.

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

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

Which inventory account consists of products currently being processed?

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

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

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). -

A clock card is:

The ending inventory for raw materials was understated. This error will cause:

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

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

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Issued supplies to production. Debit & & Credit & &

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Charged direct labor to production. Debit & & Credit & &