Question 1

Closing entries for a manufacturing firm include all of the following except

Accepted Answer

A)  transferring all manufacturing cost accounts to Manufacturing Summary. 
B)  transferring all Revenue and Expense account balances to Income Summary. 
C)  closing Manufacturing Summary to Income Summary. 
D)  closing Income Summary to Net Income. 
A)  transferring all manufacturing cost accounts to Manufacturing Summary. 
B)  transferring all Revenue and Expense account balances to Income Summary. 
C)  closing Manufacturing Summary to Income Summary. 
D)  closing Income Summary to Net Income.

Question 2

Immediately before it is closed, the balance of the Manufacturing Summary account represents the cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 3

All of the items that are purchased for manufacturing operations, that go into a product and become part of it, are called ____________________ materials.

Accepted Answer

The answer of All of the items that are purchased...

Question 4

Match the following terms with the definitions provided.

Accepted Answer

The answer of Match the following terms with the definitions...

Question 5

Selected account balances for Reed Manufacturing Company on December 31, 2013, the end of the fiscal year, are given below. Data about the beginning and ending inventories are also given. Use this information to prepare a statement of cost of goods manufactured and an income statement for 2013.

Accepted Answer

The answer of Selected account balances for Reed Manufacturing Company...

Question 6

The Balance Sheet of a manufacturing firm will include which account that will not be included in the Balance Sheet of a service firm?

Accepted Answer

A)  Purchases 
B)  Accounts Payable 
C)  Prepaid Wages 
D)  Work in Process Inventory 
A)  Purchases 
B)  Accounts Payable 
C)  Prepaid Wages 
D)  Work in Process Inventory

Question 7

The Manufacturing Summary account is closed into the ____________________ account.

Accepted Answer

The answer of The Manufacturing Summary account is closed into...

Question 8

The cost of goods manufactured is computed by

Accepted Answer

A)  adding raw materials used and direct labor to manufacturing overhead. 
B)  deducting the ending work in process inventory from the sum of the total manufacturing cost and the beginning work in process inventory. 
C)  deducting the ending finished goods inventory from the beginning finished goods inventory. 
D)  adding operating expenses to direct labor costs. 
A)  adding raw materials used and direct labor to manufacturing overhead. 
B)  deducting the ending work in process inventory from the sum of the total manufacturing cost and the beginning work in process inventory. 
C)  deducting the ending finished goods inventory from the beginning finished goods inventory. 
D)  adding operating expenses to direct labor costs.

Question 9

The entry to close the Manufacturing Summary account includes a(n) ____________________ to Manufacturing Summary.

Accepted Answer

The answer of The entry to close the Manufacturing Summary...

Question 10

The following information appears on the income statement of the Richer Company at the end of the year. $\begin{array}{lr}
\text { Beginning finished goods inventory } & \$ 160,000 \
\text { Ending finished goods inventory } & 144,000 \
\text { Sales } & 400,000 \
\text { Gross Profit on Sales } & 120,000
\end{array}$ Cost of Goods Manufactured was:

Accepted Answer

A)  $246,000. 
B)  $280,000. 
C)  $264,000. 
D)  $240,000. Cost of Goods Sold = 400,000 - 120,000 = 280,000.
Cost of Goods Manufactured = 144,000 + 280,000 - 160,000 = 264,000. 
A)  $246,000. 
B)  $280,000. 
C)  $264,000. 
D)  $240,000. Cost of Goods Sold = 400,000 - 120,000 = 280,000.
Cost of Goods Manufactured = 144,000 + 280,000 - 160,000 = 264,000.

Question 11

Describe the process for adjusting entries for inventory in a manufacturing firm. How many adjustments are made for inventory? To what account are the adjustments to inventory made?

Accepted Answer

There are six adjustments made for inven

Question 12

Reversing entries help save time and prevent errors in the period being closed.

Accepted Answer

A) True 
 B)False

Question 13

What is the postclosing Trial Balance and why is it prepared?

Accepted Answer

The postclosing Trial Balance is prepare

Question 14

The statement of cost of goods manufactured

Accepted Answer

A)  supports the income statement. 
B)  replaces the income statement. 
C)  is not related to the income statement. 
D)  supports the balance sheet. 
A)  supports the income statement. 
B)  replaces the income statement. 
C)  is not related to the income statement. 
D)  supports the balance sheet.

Question 15

A statement of cost goods manufactured supports the income statement.

Accepted Answer

A) True 
 B)False

Question 16

Finished goods inventory is used in the computation of cost of goods ___________________.

Accepted Answer

The answer of Finished goods inventory is used in the...

Question 17

The following information appears on the Statement of Cost of Goods Manufactured for the Poster Company at the end of the year. $$\begin{array} { l r } 
\text { Raw Materials Used } & \$ 70,000 \
\text { Direct Labor } & 90,000 \
\text { Cost of Goods Manufactured } & 200,000 \
\text { Work in Process Inventory, January 1 } & 30,000 \
\text { Work in Process Inventory, December 31 } & 20,000
\end{array}$$ Manufacturing Overhead for the year was:

Accepted Answer

A)  $60,000. 
B)  $50,000. 
C)  $40,000. 
D)  $30,000. Manufacturing Cost = Ending Work in Process + Costs of Goods Manufacturing - Beginning Work in Process = 20,000 + 200,000 - 30,000 = 190,000.
Overhead = Total Manufacturing Costs - Raw Material Used - Direct Labor
= 190,000 - 70,000 - 90,000 = 30,000. 
A)  $60,000. 
B)  $50,000. 
C)  $40,000. 
D)  $30,000. Manufacturing Cost = Ending Work in Process + Costs of Goods Manufacturing - Beginning Work in Process = 20,000 + 200,000 - 30,000 = 190,000.
Overhead = Total Manufacturing Costs - Raw Material Used - Direct Labor
= 190,000 - 70,000 - 90,000 = 30,000.

Question 18

Selected account balances for Reed Manufacturing Company on December 31, 2013, the end of the fiscal year, are given below. Data about the beginning and ending inventories are also given. Record the adjusting entries for the inventory accounts on page 5 of a general journal. Skip a line and record the entry to close the manufacturing cost accounts. Omit descriptions.

Accepted Answer

The answer of Selected account balances for Reed Manufacturing Company...

Question 19

The salary paid to a factory supervisor would be classified as ____________________ labor.

Accepted Answer

The answer of The salary paid to a factory supervisor...

Question 20

The Cost of Goods Sold section of the income statement for a manufacturing business shows the work in process inventory.

Accepted Answer

A) True 
 B)False

Closing entries for a manufacturing firm include all of the following except

Immediately before it is closed, the balance of the Manufacturing Summary account represents the cost of goods manufactured.

All of the items that are purchased for manufacturing operations, that go into a product and become part of it, are called ____________________ materials.

Match the following terms with the definitions provided.

Selected account balances for Reed Manufacturing Company on December 31, 2013, the end of the fiscal year, are given below. Data about the beginning and ending inventories are also given. Use this information to prepare a statement of cost of goods manufactured and an income statement for 2013.

The Balance Sheet of a manufacturing firm will include which account that will not be included in the Balance Sheet of a service firm?

The Manufacturing Summary account is closed into the ____________________ account.

The cost of goods manufactured is computed by

The entry to close the Manufacturing Summary account includes a(n) ____________________ to Manufacturing Summary.

The following information appears on the income statement of the Richer Company at the end of the year. Beginning finished goods inventory \ 160,000 Ending finished goods inventory 144,000 Sales 400,000 Gross Profit on Sales 120,000 Cost of Goods Manufactured was:

Describe the process for adjusting entries for inventory in a manufacturing firm. How many adjustments are made for inventory? To what account are the adjustments to inventory made?

Reversing entries help save time and prevent errors in the period being closed.

What is the postclosing Trial Balance and why is it prepared?

The statement of cost of goods manufactured

A statement of cost goods manufactured supports the income statement.

Finished goods inventory is used in the computation of cost of goods ___________________.

The salary paid to a factory supervisor would be classified as ____________________ labor.

The Cost of Goods Sold section of the income statement for a manufacturing business shows the work in process inventory.

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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Exam 26: Accounting for Manufacturing Activities

Closing entries for a manufacturing firm include all of the following except

Immediately before it is closed, the balance of the Manufacturing Summary account represents the cost of goods manufactured.

All of the items that are purchased for manufacturing operations, that go into a product and become part of it, are called ____________________ materials.

Match the following terms with the definitions provided.

Selected account balances for Reed Manufacturing Company on December 31, 2013, the end of the fiscal year, are given below. Data about the beginning and ending inventories are also given. Use this information to prepare a statement of cost of goods manufactured and an income statement for 2013.

The Balance Sheet of a manufacturing firm will include which account that will not be included in the Balance Sheet of a service firm?

The Manufacturing Summary account is closed into the ____________________ account.

The cost of goods manufactured is computed by

The entry to close the Manufacturing Summary account includes a(n) ____________________ to Manufacturing Summary.

The following information appears on the income statement of the Richer Company at the end of the year. Beginning finished goods inventory \ 160,000 Ending finished goods inventory 144,000 Sales 400,000 Gross Profit on Sales 120,000 Cost of Goods Manufactured was:

Describe the process for adjusting entries for inventory in a manufacturing firm. How many adjustments are made for inventory? To what account are the adjustments to inventory made?

Reversing entries help save time and prevent errors in the period being closed.

What is the postclosing Trial Balance and why is it prepared?

The statement of cost of goods manufactured

A statement of cost goods manufactured supports the income statement.

Finished goods inventory is used in the computation of cost of goods ___________________.

The salary paid to a factory supervisor would be classified as ____________________ labor.

The Cost of Goods Sold section of the income statement for a manufacturing business shows the work in process inventory.

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

Filters