Question 1

Period costs are deducted from sales to arrive at gross profit.

Accepted Answer

A) True 
 B)False  False

Question 2

[The following information applies to the questions displayed below.]
The following information has been taken from the perpetual inventory system of Elite Mfg.Co.for the month ended August 31:
    
-The cost of goods sold in August is:

Accepted Answer

A) $75,000. 
B) $17,000. 
C) $135,000. 
D) Some other amount. 
A) $75,000. 
B) $17,000. 
C) $135,000. 
D) Some other amount. A

Question 3

Manufacturing overhead is considered an indirect cost,since overhead costs generally cannot be traced conveniently and directly to specific units of product.

Accepted Answer

A) True 
 B)False  True

Question 4

Flow of manufacturing costs
The following data are taken from the accounting records of Victoria Mfg.Co.:
   Compute the following amounts:
(a)Direct materials purchased during the period: $________
(b)Total manufacturing costs charged to production (the Work in Process Inventory account)during the year: $________
(c)The cost of finished goods manufactured during the year: $________
(d)The cost of goods sold during the year: $________

Accepted Answer

(a)$25,000

Question 5

The three basic types of manufacturing costs are direct materials,direct labor,and manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 6

In a manufacturing company,the cost of finished goods manufactured is equal to:

Accepted Answer

A) The beginning inventory of finished goods,plus net purchases,less the ending inventory of finished goods. 
B) The sum of the manufacturing costs charged (debited)to the Work in Process Inventory account during the period. 
C) The costs of direct materials,direct labor,and manufacturing overhead incurred in manufacturing the goods sold during the period. 
D) The beginning inventory of Work in Process,plus total manufacturing costs for the period,less the ending inventory of Work in Process. 
A) The beginning inventory of finished goods,plus net purchases,less the ending inventory of finished goods. 
B) The sum of the manufacturing costs charged (debited)to the Work in Process Inventory account during the period. 
C) The costs of direct materials,direct labor,and manufacturing overhead incurred in manufacturing the goods sold during the period. 
D) The beginning inventory of Work in Process,plus total manufacturing costs for the period,less the ending inventory of Work in Process.

Question 7

When direct materials are used:

Accepted Answer

A) Manufacturing Overhead is debited. 
B) Raw Materials Inventory is debited. 
C) Cost of Goods Sold is debited. 
D) Work in Process Inventory is debited. 
A) Manufacturing Overhead is debited. 
B) Raw Materials Inventory is debited. 
C) Cost of Goods Sold is debited. 
D) Work in Process Inventory is debited.

Question 8

When direct materials are applied to the production process,materials inventory is debited and work in process is credited.

Accepted Answer

A) True 
 B)False

Question 9

When direct labor employees contribute to the production process,the cost of their labor is recorded by debiting:

Accepted Answer

A) Wages Expense. 
B) Direct Labor. 
C) Work in Process Inventory. 
D) Manufacturing Overhead. 
A) Wages Expense. 
B) Direct Labor. 
C) Work in Process Inventory. 
D) Manufacturing Overhead.

Question 10

In a manufacturing company,the cost of goods sold is equal to:

Accepted Answer

A) The beginning inventory of work in process,plus total manufacturing costs,less the ending inventory of finished goods. 
B) Total manufacturing costs for the period,less selling expenses. 
C) The beginning inventory of work in process,plus total manufacturing costs,less the ending inventory of work in process. 
D) The cost of goods available for sale,less the ending inventory of finished goods. 
A) The beginning inventory of work in process,plus total manufacturing costs,less the ending inventory of finished goods. 
B) Total manufacturing costs for the period,less selling expenses. 
C) The beginning inventory of work in process,plus total manufacturing costs,less the ending inventory of work in process. 
D) The cost of goods available for sale,less the ending inventory of finished goods.

Question 11

Product costs are charged directly to expense accounts.

Accepted Answer

A) True 
 B)False

Question 12

In a manufacturing company,the cost of goods sold is equal to:

Accepted Answer

A) The beginning inventory of finished goods,plus net purchases,less the ending inventory of finished goods. 
B) The sum of the manufacturing costs charged (debited)to the Work in Process Inventory account during the period. 
C) The costs of direct materials,direct labor,and manufacturing overhead incurred in manufacturing the goods sold during the period. 
D) The beginning inventory of Work in Process,plus total manufacturing costs for the period,less the ending inventory of Work in Process. 
A) The beginning inventory of finished goods,plus net purchases,less the ending inventory of finished goods. 
B) The sum of the manufacturing costs charged (debited)to the Work in Process Inventory account during the period. 
C) The costs of direct materials,direct labor,and manufacturing overhead incurred in manufacturing the goods sold during the period. 
D) The beginning inventory of Work in Process,plus total manufacturing costs for the period,less the ending inventory of Work in Process.

Question 13

Determine the amount of manufacturing overhead given the following information:

Accepted Answer

A) $7,750 
B) $10,430 
C) $9,750 
D) $11,080 
A) $7,750 
B) $10,430 
C) $9,750 
D) $11,080

Question 14

When products are completed:

Accepted Answer

A) Finished Goods Inventory is credited. 
B) Work in Process Inventory is credited. 
C) Cost of Goods Sold is debited. 
D) Work in Process Inventory is debited. 
A) Finished Goods Inventory is credited. 
B) Work in Process Inventory is credited. 
C) Cost of Goods Sold is debited. 
D) Work in Process Inventory is debited.

Question 15

The following information pertains to the Galaxy Company:
Work in Process,balance as of January 1 $54,500
Work in Process,balance as of December 31 $56,275
During the year,the company used $575,500 in raw materials,incurred $420,500 in direct labor costs,and $500,000 in manufacturing overhead costs were applied to work in process.Determine the Costs of Goods Manufactured for the Galaxy Company.

Accepted Answer

The answer of The following information pertains to the Galaxy...

Question 16

[The following information applies to the questions displayed below.]
The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30:
    
-The cost of finished goods manufactured in September is:

Accepted Answer

A) $190,000. 
B) $180,000. 
C) $213,000. 
D) Some other amount. 
A) $190,000. 
B) $180,000. 
C) $213,000. 
D) Some other amount.

Question 17

[The following information applies to the questions displayed below.]
The following information has been taken from the perpetual inventory system of Elite Mfg.Co.for the month ended August 31:
    
-Total manufacturing costs charged (debited)to Work in Process during August amount to:

Accepted Answer

A) $60,000. 
B) $125,000. 
C) $110,000. 
D) Some other amount. 
A) $60,000. 
B) $125,000. 
C) $110,000. 
D) Some other amount.

Question 18

The payment of raw materials previously purchased on account is recorded by an entry debiting:

Accepted Answer

A) Raw Materials Inventory. 
B) Accounts Payable. 
C) Work in Process Inventory. 
D) Cash. 
A) Raw Materials Inventory. 
B) Accounts Payable. 
C) Work in Process Inventory. 
D) Cash.

Question 19

[The following information applies to the questions displayed below.]
The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30:
    
-Total manufacturing costs charged (debited)to Work in Process during September amount to:

Accepted Answer

A) $180,000. 
B) $170,000. 
C) $172,000. 
D) Some other amount. 
A) $180,000. 
B) $170,000. 
C) $172,000. 
D) Some other amount.

Question 20

[The following information applies to the questions displayed below.]
The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30:
    
-The cost of goods sold in September is:

Accepted Answer

A) $190,000. 
B) $158,000. 
C) $168,000. 
D) Some other amount. 
A) $190,000. 
B) $158,000. 
C) $168,000. 
D) Some other amount.

Exam 16: Management Accounting

Period costs are deducted from sales to arrive at gross profit.

[The following information applies to the questions displayed below.] The following information has been taken from the perpetual inventory system of Elite Mfg.Co.for the month ended August 31: -The cost of goods sold in August is:

Manufacturing overhead is considered an indirect cost,since overhead costs generally cannot be traced conveniently and directly to specific units of product.

The three basic types of manufacturing costs are direct materials,direct labor,and manufacturing overhead.

In a manufacturing company,the cost of finished goods manufactured is equal to:

When direct materials are used:

When direct materials are applied to the production process,materials inventory is debited and work in process is credited.

When direct labor employees contribute to the production process,the cost of their labor is recorded by debiting:

In a manufacturing company,the cost of goods sold is equal to:

Product costs are charged directly to expense accounts.

In a manufacturing company,the cost of goods sold is equal to:

Determine the amount of manufacturing overhead given the following information:

When products are completed:

[The following information applies to the questions displayed below.] The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30: -The cost of finished goods manufactured in September is:

[The following information applies to the questions displayed below.] The following information has been taken from the perpetual inventory system of Elite Mfg.Co.for the month ended August 31: -Total manufacturing costs charged (debited)to Work in Process during August amount to:

The payment of raw materials previously purchased on account is recorded by an entry debiting:

[The following information applies to the questions displayed below.] The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30: -Total manufacturing costs charged (debited)to Work in Process during September amount to:

[The following information applies to the questions displayed below.] The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30: -The cost of goods sold in September is:

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters