Question 1

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

Accepted Answer

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

Question 2

Beginning and ending finished goods inventory are used in the calculation of cost of goods---------.

Accepted Answer

The answer of Beginning and ending finished goods inventory are...

Question 3

To compute the---------- , it is necessary to subtract the ending work in process inventory from the sum of the beginning work in process inventory and the total manufacturing cost.

Accepted Answer

The answer of To compute the---------- , it is necessary...

Question 4

Calculate the cost of goods manufactured from the information given:

Accepted Answer

A) $21,200. 
B) $19,800. 
C) $13,800. 
D) $15,200.

Question 5

Raw materials purchased during the month were $66,000. During that same period, $95,000 was used and ending inventory was $35,000. The beginning raw material inventory balance must have been $60,000.

Accepted Answer

A) True 
 B)False

Question 6

The ending balance of the work in process inventory is recorded by debiting Work in Process Inventory and crediting:

Accepted Answer

A) Income Summary. 
B) Manufacturing Summary. 
C) Cost of Goods Sold. 
D) Merchandise Inventory.

Question 7

For a manufacturing business, net sales minus---------- equals gross profit on sales.

Accepted Answer

The answer of For a manufacturing business, net sales minus----------...

Question 8

Define the term manufacturing overhead and give three examples of manufacturing overhead for a bakery.

Accepted Answer

The answer of Define the term manufacturing overhead and give...

Question 9

Use the following information for the questions.

-From the information given, determine total direct and total indirect costs.

Accepted Answer

The answer of Use the following information for the questions.

-From...

Question 10

What are the three inventory accounts for a manufacturing firm? List the three inventory accounts and indicate for each the name(s)of the statement(s)in which it appears.

Accepted Answer

The answer of What are the three inventory accounts for...

Question 11

The Indirect Labor account is closed by crediting Indirect Labor and debiting:

Accepted Answer

A) Wages Payable. 
B) Income Summary. 
C) Wages Expense. 
D) Manufacturing Summary.

Question 12

The amounts of the raw materials used, direct labor incurred, and manufacturing overhead applied during a fiscal period are reported on the statement of cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 13

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 14

All of the items that are purchased for manufacturing operations that go into a product and become part of the finished product are called----------- .

Accepted Answer

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

Question 15

What is the post-closing Trial Balance and why is it prepared?

Accepted Answer

The answer of What is the post-closing Trial Balance and...

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The following information appears on the income statement of the Richer Company at the end of th year.
$\begin{array}{lr}
\text { Beginning finished goods inventory } & \$ 197,000 \
\text { Ending finished goods inventory } & 204,000 \
\text { Sales } & 360,100 \
\text { Cost of Goods Manufactured } & 136,000
\end{array}$
Gross Profit on Sales is:

Accepted Answer

A) $217,000. 
B) $231,000. 
C) $143,000. 
D) $129,000.

Question 19

Bolton Company's total manufacturing costs for the year were $1,815,000. The firm's manufacturing overhead was $336,000, and its cost of raw materials used was $856,000. What was the direct labor cost for the year?

Accepted Answer

The answer of Bolton Company's total manufacturing costs for the...

Question 20

The Manufacturing Summary account is closed into the---------- account.

Accepted Answer

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

Exam 26: Accounting for Manufacturing Activities

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

Beginning and ending finished goods inventory are used in the calculation of cost of goods---------.

To compute the---------- , it is necessary to subtract the ending work in process inventory from the sum of the beginning work in process inventory and the total manufacturing cost.

Calculate the cost of goods manufactured from the information given:

Raw materials purchased during the month were $66,000. During that same period, $95,000 was used and ending inventory was $35,000. The beginning raw material inventory balance must have been $60,000.

The ending balance of the work in process inventory is recorded by debiting Work in Process Inventory and crediting:

For a manufacturing business, net sales minus---------- equals gross profit on sales.

Define the term manufacturing overhead and give three examples of manufacturing overhead for a bakery.

Use the following information for the questions. -From the information given, determine total direct and total indirect costs.

What are the three inventory accounts for a manufacturing firm? List the three inventory accounts and indicate for each the name(s)of the statement(s)in which it appears.

The Indirect Labor account is closed by crediting Indirect Labor and debiting:

The amounts of the raw materials used, direct labor incurred, and manufacturing overhead applied during a fiscal period are reported on the statement of cost of goods manufactured.

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

All of the items that are purchased for manufacturing operations that go into a product and become part of the finished product are called----------- .

What is the post-closing Trial Balance and why is it prepared?

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

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

Bolton Company's total manufacturing costs for the year were $1,815,000. The firm's manufacturing overhead was $336,000, and its cost of raw materials used was $856,000. What was the direct labor cost for the year?

The Manufacturing Summary account is closed into the---------- account.