Question 1

All manufacturing costs that are NOT classified as direct materials or direct labor are

Accepted Answer

A)  indirect materials. 
B)  indirect labor. 
C)  manufacturing overhead. 
D)  semidirect costs.

Question 2

Information about depreciation,insurance,and property taxes for the factory building of a manufacturing business would be shown in the Operating Expenses section of the income statement.

Accepted Answer

A) True 
 B)False

Question 3

Total manufacturing cost is the sum of direct materials used,direct labor incurred plus manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 4

The balance of the Manufacturing Summary account is closed into

Accepted Answer

A)  Income Summary. 
B)  Cost of Goods Manufactured. 
C)  Retained Earnings. 
D)  Manufacturing Overhead.

Question 5

Fill in the missing line items on the Income Statement given.Include correct indentations,underlines,dates,and capitalization when needed.

Accepted Answer

The answer of Fill in the missing line items on...

Question 6

The following information appears on the income statement of the Richer Company at the end of the year.  Gross Profit on Sales was:

Accepted Answer

A)  $140,000. 
B)  $160,000. 
C)  $200,000. 
D)  $220,000.

Question 7

Total manufacturing cost is the sum of beginning work in process,direct materials used,direct labor incurred plus manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 8

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 9

The cost of goods sold will often differ from the cost of goods manufactured because of changes in the level of finished goods.

Accepted Answer

A) True 
 B)False

Question 10

The following information appears on the Statement of Cost of Goods Manufactured for the Coleman Company at the end of the year.  The balance in Work in Process Inventory at year-end was:

Accepted Answer

A)  $30,000. 
B)  $40,000. 
C)  $60,000. 
D)  $20,000.

Question 11

An adjusting entry to accrue salaries and wage expenses incurred,but not yet recorded is required prior to closing out a reporting period.

Accepted Answer

A) True 
 B)False

Question 12

The Balance Sheet headings and the accounts and their balances for Exemplar Manufacturing are listed in alphabetical order.Exemplar Manufacturing has a fiscal year end of June 30,2016.  Using the information given,prepare the Balance Sheet for Exemplar Manufacturing.Include correct indentations,underlines,dates,and capitalization where needed.

Accepted Answer

The answer of The Balance Sheet headings and the accounts...

Question 13

Stellar Manufacturing had a beginning raw materials inventory of $220,000.The firm had net purchases of $625,000 for the period and an ending raw materials inventory of $199,000.What was the cost of raw materials used?

Accepted Answer

The answer of Stellar Manufacturing had a beginning raw materials...

Question 14

The Balance Sheet headings and the accounts and their balances for Exemplar Manufacturing are listed in alphabetical order.Exemplar Manufacturing has a fiscal year end of June 30,2016.  Using the information given,prepare the Current Assets section of the Balance Sheet for Exemplar Manufacturing.Include correct indentations,underlines,dates,and capitalization where needed.

Accepted Answer

The answer of The Balance Sheet headings and the accounts...

Question 15

The following information appears on the income statement of the Davis Company at the end of the year.  Ending finished goods inventory was:

Accepted Answer

A)  $140,000. 
B)  $160,000. 
C)  $200,000. 
D)  $220,000.

Question 16

All manufacturing costs except those for direct labor and direct materials are included in manufacturing ___________________.

Accepted Answer

The answer of All manufacturing costs except those for direct...

Question 17

Fill in the missing line items on the Statement of Cost of Goods Manufactured given.Include correct indentations,underlines,dates,and capitalization when needed.

Accepted Answer

The answer of Fill in the missing line items on...

Question 18

The following information appears on the Statement of Cost of Goods Manufactured for the Coleman Company at the end of the year.  The cost for Direct Labor was:

Accepted Answer

A)  $40,000. 
B)  $60,000. 
C)  $110,000. 
D)  $120,000.

Question 19

Selected account balances for Reed Manufacturing Company on December 31,2016,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 2016.

Accepted Answer

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

Question 20

The manufacturing summary account is a temporary account used to close out manufacturing costs before transferring the balance to Finished Goods.

Accepted Answer

A) True 
 B)False

Exam 26: Accounting for Manufacturing Activities

All manufacturing costs that are NOT classified as direct materials or direct labor are

Information about depreciation,insurance,and property taxes for the factory building of a manufacturing business would be shown in the Operating Expenses section of the income statement.

Total manufacturing cost is the sum of direct materials used,direct labor incurred plus manufacturing overhead.

The balance of the Manufacturing Summary account is closed into

Fill in the missing line items on the Income Statement given.Include correct indentations,underlines,dates,and capitalization when needed.

The following information appears on the income statement of the Richer Company at the end of the year. Gross Profit on Sales was:

Total manufacturing cost is the sum of beginning work in process,direct materials used,direct labor incurred plus manufacturing overhead.

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

The cost of goods sold will often differ from the cost of goods manufactured because of changes in the level of finished goods.

The following information appears on the Statement of Cost of Goods Manufactured for the Coleman Company at the end of the year. The balance in Work in Process Inventory at year-end was:

An adjusting entry to accrue salaries and wage expenses incurred,but not yet recorded is required prior to closing out a reporting period.

Stellar Manufacturing had a beginning raw materials inventory of $220,000.The firm had net purchases of $625,000 for the period and an ending raw materials inventory of $199,000.What was the cost of raw materials used?

The following information appears on the income statement of the Davis Company at the end of the year. Ending finished goods inventory was:

All manufacturing costs except those for direct labor and direct materials are included in manufacturing ___________________.

Fill in the missing line items on the Statement of Cost of Goods Manufactured given.Include correct indentations,underlines,dates,and capitalization when needed.

The following information appears on the Statement of Cost of Goods Manufactured for the Coleman Company at the end of the year. The cost for Direct Labor was:

Selected account balances for Reed Manufacturing Company on December 31,2016,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 2016.

The manufacturing summary account is a temporary account used to close out manufacturing costs before transferring the balance to Finished Goods.