Question 1

From the following, calculate the cost of raw materials used and total manufacturing costs:

Accepted Answer

Raw Materials used: $7,000 (4,

Question 2

Madison Manufacturing is using a manufacturing overhead application rate of 110% of direct labor dollars. If direct labor was 10 hours at $15 per hour, how much overhead should be applied to the job?

Accepted Answer

A) $135 
B) $165 
C) $160 
D) $150 
A) $135 
B) $165 
C) $160 
D) $150

Question 3

Finished goods ending inventory was overstated. 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) All 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) All of these are correct.

Question 4

Direct labor includes the wages of:

Accepted Answer

A) an hourly worker producing the product. 
B) the shop foreman. 
C) maintenance workers. 
D) administrators. 
A) an hourly worker producing the product. 
B) the shop foreman. 
C) maintenance workers. 
D) administrators.

Question 5

From the following information calculate total manufacturing costs and cost of goods manufactured.

Accepted Answer

Total manufacturing

Question 6

Describe the three elements of manufacturing cost.

Accepted Answer

The three elements of manufacturing cost

Question 7

The following data are available for Starbrite Corporation:   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 8

Hourly wages of production line employees is one of the costs included in the work-in-process inventory.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

Debit 2 &

Question 10

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 11

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 12

Finished goods are listed on the statement of cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

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 15

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 16

Total manufacturing costs incurred include:

Accepted Answer

A) direct labor costs. 
B) raw materials costs. 
C) manufacturing overhead. 
D) all of the above. 
A) direct labor costs. 
B) raw materials costs. 
C) manufacturing overhead. 
D) all of the above.

Question 17

Estimated manufacturing overhead costs were $40,000 and the number of estimated machine hours was 10,000. Actual overhead costs were $40,500 and the actual number of machine hours used was 10,200. Based on machine hours, the overhead application rate per hour is:

Accepted Answer

A) $3.97. 
B) $3.92. 
C) $4.00. 
D) $4.05. 
A) $3.97. 
B) $3.92. 
C) $4.00. 
D) $4.05.

Question 18

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 19

Finished goods inventory includes the total costs of manufacturing a product.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 25: Manufacturing Accounting

From the following, calculate the cost of raw materials used and total manufacturing costs:

Madison Manufacturing is using a manufacturing overhead application rate of 110% of direct labor dollars. If direct labor was 10 hours at $15 per hour, how much overhead should be applied to the job?

Finished goods ending inventory was overstated. This error will cause:

Direct labor includes the wages of:

From the following information calculate total manufacturing costs and cost of goods manufactured.

Describe the three elements of manufacturing cost.

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

Hourly wages of production line employees is one of the costs included in the work-in-process inventory.

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

Raw material inventory appears on the:

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.

Finished goods are listed on the statement of cost of goods manufactured.

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

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

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:

Total manufacturing costs incurred include:

Estimated manufacturing overhead costs were $40,000 and the number of estimated machine hours was 10,000. Actual overhead costs were $40,500 and the actual number of machine hours used was 10,200. Based on machine hours, the overhead application rate per hour is:

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

Finished goods inventory includes the total costs of manufacturing a product.

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

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. -Sold products on account. Debit & & Credit & &

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