Question 1

Which of the following costs are NOT included in finished goods inventory?

Accepted Answer

A) Direct labor 
B) Factory overhead 
C) Company president's salary 
D) Direct materials 
A) Direct labor 
B) Factory overhead 
C) Company president's salary 
D) Direct materials C

Question 2

Which of the following is FALSE in regards to direct materials for an auto manufacturer?

Accepted Answer

A) Steel would probably be a direct material. 
B) Upholstery fabric would probably be a direct material. 
C) Oil to lubricate factory machines would not be a direct material. 
D) Small plastic clips to hold on door panels,because they become part of the auto,must be accounted for as direct materials. 
A) Steel would probably be a direct material. 
B) Upholstery fabric would probably be a direct material. 
C) Oil to lubricate factory machines would not be a direct material. 
D) Small plastic clips to hold on door panels,because they become part of the auto,must be accounted for as direct materials. D

Question 3

Recording direct labor costs in a job order cost accounting system

Accepted Answer

A) increases Factory Overhead,decreases Work in Process. 
B) increases Finished Goods,increases Wages Payable. 
C) increases Work in Process,increases Wages Payable. 
D) increases Factory Overhead,increases Wages Payable. 
A) increases Factory Overhead,decreases Work in Process. 
B) increases Finished Goods,increases Wages Payable. 
C) increases Work in Process,increases Wages Payable. 
D) increases Factory Overhead,increases Wages Payable. C

Question 4

Which types of inventories does a manufacturing business report on its balance sheet?

Accepted Answer

A) Finished goods inventory and work in process inventory 
B) Direct materials inventory and work in process inventory 
C) Direct materials inventory,work in process inventory,and finished goods inventory 
D) Direct materials inventory and finished goods inventory 
A) Finished goods inventory and work in process inventory 
B) Direct materials inventory and work in process inventory 
C) Direct materials inventory,work in process inventory,and finished goods inventory 
D) Direct materials inventory and finished goods inventory

Question 5

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

Accepted Answer

A) True 
 B)False

Question 6

When Job 711 was completed,direct materials totaled $3,000;direct labor,$3,500;and factory overhead,$1,500.Units produced totaled 1,000.Unit costs are

Accepted Answer

A) $8,000. 
B) $6,500. 
C) $6.50. 
D) $8. 
A) $8,000. 
B) $6,500. 
C) $6.50. 
D) $8.

Question 7

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 8

At the end of the year,overhead applied was $35,000,000.Actual overhead was $35,800,000.Closing over/under applied overhead into cost of goods sold would cause net income to

Accepted Answer

A) increase by $800,000. 
B) decrease by $800,000. 
C) stay the same. 
D) decrease by $200,000. 
A) increase by $800,000. 
B) decrease by $800,000. 
C) stay the same. 
D) decrease by $200,000.

Question 9

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as

Accepted Answer

A) factory overhead cost. 
B) direct labor cost. 
C) wages expense. 
D) direct materials cost. 
A) factory overhead cost. 
B) direct labor cost. 
C) wages expense. 
D) direct materials cost.

Question 10

Companies recognizing the need to simultaneously produce products with high quality,low cost,and instant availability can adopt a just- in-time processing philosophy.

Accepted Answer

A) True 
 B)False

Question 11

Compute factory overhead cost from the following costs:

Accepted Answer

A) $23,000 
B) $43,000 
C) $70,000 
D) $113,000 
A) $23,000 
B) $43,000 
C) $70,000 
D) $113,000

Question 12

Depreciation expense on factory equipment is part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 13

Just-in-time manufacturing uses which of the following techniques?

Accepted Answer

A) Provides specialized training so that employees only do one task and work individually to improve efficiencies in the department 
B) Organizes the plant in such a way as to reduce product movement from station to station 
C) Encourages management to make all operating decisions regarding the manufacturing process rather than the line employees in order to streamline the process 
D) All of these 
A) Provides specialized training so that employees only do one task and work individually to improve efficiencies in the department 
B) Organizes the plant in such a way as to reduce product movement from station to station 
C) Encourages management to make all operating decisions regarding the manufacturing process rather than the line employees in order to streamline the process 
D) All of these

Question 14

The sale of a finished good on account

Accepted Answer

A) increases Cost of Goods Sold and decreases Finished Goods. 
B) increases Cost of Goods Sold,decreases Finished Goods,increases Accounts Receivable,and increases Sales. 
C) increases Sales Expense,decreases Finished Goods,decreases Cash,and decreases Accounts Receivable. 
D) increases Work in Process,decreases Finished Goods,increases Accounts Receivable,and increases Sales. 
A) increases Cost of Goods Sold and decreases Finished Goods. 
B) increases Cost of Goods Sold,decreases Finished Goods,increases Accounts Receivable,and increases Sales. 
C) increases Sales Expense,decreases Finished Goods,decreases Cash,and decreases Accounts Receivable. 
D) increases Work in Process,decreases Finished Goods,increases Accounts Receivable,and increases Sales.

Question 15

The period costs of a textbook printer would include

Accepted Answer

A) wages of a press operator. 
B) utility costs of the factory. 
C) advertising expenses. 
D) paper costs. 
A) wages of a press operator. 
B) utility costs of the factory. 
C) advertising expenses. 
D) paper costs.

Question 16

Direct materials costs are included in the conversion costs of a product.

Accepted Answer

A) True 
 B)False

Question 17

Job order costing and process costing are

Accepted Answer

A) pricing systems. 
B) cost accounting systems. 
C) cost flow systems. 
D) inventory tracking systems. 
A) pricing systems. 
B) cost accounting systems. 
C) cost flow systems. 
D) inventory tracking systems.

Question 18

The document authorizing the issuance of materials from the storeroom is the

Accepted Answer

A) materials requisition. 
B) purchase requisition. 
C) receiving report. 
D) purchase order. 
A) materials requisition. 
B) purchase requisition. 
C) receiving report. 
D) purchase order.

Question 19

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year total 18,000 and actual factory overhead totals $350,000,what is the amount of overapplied or underapplied overhead for the year?

Accepted Answer

A) $10,000 overapplied 
B) $10,000 underapplied 
C) $50,000 underapplied 
D) $50,000 overapplied 
A) $10,000 overapplied 
B) $10,000 underapplied 
C) $50,000 underapplied 
D) $50,000 overapplied

Question 20

A manufacturing business converts materials into finished products through the use of machinery and labor.

Accepted Answer

A) True 
 B)False

Which of the following costs are NOT included in finished goods inventory?

Which of the following is FALSE in regards to direct materials for an auto manufacturer?

Recording direct labor costs in a job order cost accounting system

Which types of inventories does a manufacturing business report on its balance sheet?

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

When Job 711 was completed,direct materials totaled $3,000;direct labor,$3,500;and factory overhead,$1,500.Units produced totaled 1,000.Unit costs are

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

At the end of the year,overhead applied was $35,000,000.Actual overhead was $35,800,000.Closing over/under applied overhead into cost of goods sold would cause net income to

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as

Companies recognizing the need to simultaneously produce products with high quality,low cost,and instant availability can adopt a just- in-time processing philosophy.

Compute factory overhead cost from the following costs:

Depreciation expense on factory equipment is part of factory overhead cost.

Just-in-time manufacturing uses which of the following techniques?

The sale of a finished good on account

The period costs of a textbook printer would include

Direct materials costs are included in the conversion costs of a product.

Job order costing and process costing are

The document authorizing the issuance of materials from the storeroom is the

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year total 18,000 and actual factory overhead totals $350,000,what is the amount of overapplied or underapplied overhead for the year?

A manufacturing business converts materials into finished products through the use of machinery and labor.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters

Exam 10: Accounting Systems for Manufacturing Businesses

Which of the following costs are NOT included in finished goods inventory?

Which of the following is FALSE in regards to direct materials for an auto manufacturer?

Recording direct labor costs in a job order cost accounting system

Which types of inventories does a manufacturing business report on its balance sheet?

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

When Job 711 was completed,direct materials totaled $3,000;direct labor,$3,500;and factory overhead,$1,500.Units produced totaled 1,000.Unit costs are

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

At the end of the year,overhead applied was $35,000,000.Actual overhead was $35,800,000.Closing over/under applied overhead into cost of goods sold would cause net income to

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as

Companies recognizing the need to simultaneously produce products with high quality,low cost,and instant availability can adopt a just- in-time processing philosophy.

Compute factory overhead cost from the following costs:

Depreciation expense on factory equipment is part of factory overhead cost.

Just-in-time manufacturing uses which of the following techniques?

The sale of a finished good on account

The period costs of a textbook printer would include

Direct materials costs are included in the conversion costs of a product.

Job order costing and process costing are

The document authorizing the issuance of materials from the storeroom is the

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year total 18,000 and actual factory overhead totals $350,000,what is the amount of overapplied or underapplied overhead for the year?

A manufacturing business converts materials into finished products through the use of machinery and labor.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters