Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The formula for cost of goods manufactured is:

Accepted Answer

A) raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
B) raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
C) beginning work-in-process plus total manufacturing cost minus ending work-in-process. 
D) raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory. 
A) raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
B) raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
C) beginning work-in-process plus total manufacturing cost minus ending work-in-process. 
D) raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory.

Question 3

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 4

Omega.com sold 25 jet skis for $7,000 which cost $5,000. The entry to record the sale would include:

Accepted Answer

A) credit to Finished Goods Inventory $5,000. 
B) credit to Sales for $7,000. 
C) debit to Cost of Goods Sold for $5,000. 
D) all of the above. 
A) credit to Finished Goods Inventory $5,000. 
B) credit to Sales for $7,000. 
C) debit to Cost of Goods Sold for $5,000. 
D) all of the above.

Question 5

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 6

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 7

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Transferred completed products to finished goods.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

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

Question 8

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 9

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 10

What inventories are included in determining total manufacturing costs?

Accepted Answer

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Work-in-Process Inventory is debited when goods are transferred to finished goods.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

If a company had a beginning balance of $5,000 in Raw Materials, an ending balance of $3,000 and purchased $27,000 of materials during the month, then the raw material cost for the month was $29,000.

Accepted Answer

A) True 
 B)False

Question 17

The entry to record the requisition of supplies from the storeroom would include:

Accepted Answer

A) debit to Raw Materials; and credit to Work-in-Process. 
B) debit to Overhead-Applied; credit to Overhead-Control. 
C) debit to Work-in-Process; and credit to Overhead-Control. 
D) debit to Overhead-Control; and credit to Supplies Inventory. 
A) debit to Raw Materials; and credit to Work-in-Process. 
B) debit to Overhead-Applied; credit to Overhead-Control. 
C) debit to Work-in-Process; and credit to Overhead-Control. 
D) debit to Overhead-Control; and credit to Supplies Inventory.

Question 18

The following data are available for Skyway:   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

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 20

List four of the six source documents covered in this unit, and explain the function of each in the accounting process.

Accepted Answer

The six source documents are as follows:

Exam 25: Manufacturing Accounting

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

The formula for cost of goods manufactured is:

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). -

Omega.com sold 25 jet skis for $7,000 which cost $5,000. The entry to record the sale would include:

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

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). -

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Transferred completed products to finished goods. Debit ________ & ________ & ________ Credit ________ & ________ & ________

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

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

What inventories are included in determining total manufacturing costs?

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

Work-in-Process Inventory is debited when goods are transferred to finished goods.

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

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:

If a company had a beginning balance of $5,000 in Raw Materials, an ending balance of $3,000 and purchased $27,000 of materials during the month, then the raw material cost for the month was $29,000.

The entry to record the requisition of supplies from the storeroom would include:

The following data are available for Skyway: If overhead is applied based on machine hours, the predetermined overhead rate is:

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). -

List four of the six source documents covered in this unit, and explain the function of each in the accounting process.

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. -Transferred completed products to finished goods. Debit & & Credit & &