Question 1

What is the journal entry to record the direct labor summarized on the labor distribution report?

Accepted Answer

A) Debit Finished Goods; credit Payroll 
B) Debit Work-in-Process; credit Payroll 
C) Debit Payroll; credit Direct Labor 
D) Debit Payroll; credit Cash 
A) Debit Finished Goods; credit Payroll 
B) Debit Work-in-Process; credit Payroll 
C) Debit Payroll; credit Direct Labor 
D) Debit Payroll; credit Cash B

Question 2

The ending inventory for raw materials was understated.This error will cause:

Accepted Answer

A) the cost of goods manufactured to be overstated. 
B) the cost of goods sold to be overstated. 
C) the net income to be overstated. 
D) Answers A and B are correct. 
A) the cost of goods manufactured to be overstated. 
B) the cost of goods sold to be overstated. 
C) the net income to be overstated. 
D) Answers A and B are correct. D

Question 3

Manufacturing overhead includes all manufacturing costs:

Accepted Answer

A) including raw materials. 
B) including overhead. 
C) excluding raw materials and direct labor. 
D) None of these answers are correct. 
A) including raw materials. 
B) including overhead. 
C) excluding raw materials and direct labor. 
D) None of these answers are correct. C

Question 4

Indirect costs were understated.This error will cause:

Accepted Answer

A) the cost of goods manufactured to be overstated. 
B) the cost of goods sold to be overstated. 
C) the net income to be understated. 
D) None of these answers is correct. 
A) the cost of goods manufactured to be overstated. 
B) the cost of goods sold to be overstated. 
C) the net income to be understated. 
D) None of these answers is correct.

Question 5

The entry to record the requisition of supplies from the storeroom would include:

Accepted Answer

A) debit to Raw Materials; and credit to Work-in-Process. 
B) debit to Overhead-Applied; credit to Overhead-Control. 
C) debit to Work-in-Process; and credit to Overhead-Control. 
D) debit to Overhead-Control; and credit to Supplies Inventory. 
A) debit to Raw Materials; and credit to Work-in-Process. 
B) debit to Overhead-Applied; credit to Overhead-Control. 
C) debit to Work-in-Process; and credit to Overhead-Control. 
D) debit to Overhead-Control; and credit to Supplies Inventory.

Question 6

Which is not an example of a source document?

Accepted Answer

A) Clock card 
B) Bill of lading 
C) Lot ticket 
D) All are source documents. 
A) Clock card 
B) Bill of lading 
C) Lot ticket 
D) All are source documents.

Question 7

The work-in-process beginning inventory was overstated.This error will cause:

Accepted Answer

A) the cost of goods manufactured to be understated. 
B) the cost of goods sold to be overstated. 
C) the net income to be overstated. 
D) Answers B and C are correct. 
A) the cost of goods manufactured to be understated. 
B) the cost of goods sold to be overstated. 
C) the net income to be overstated. 
D) Answers B and C are correct.

Question 8

The Overhead Applied account is used to apply overhead costs to production.

Accepted Answer

A) True 
 B)False

Question 9

A shop foreman's salary is not considered direct labor.

Accepted Answer

A) True 
 B)False

Question 10

In a manufacturing company,the purchase of materials on account should be recorded as follows:

Accepted Answer

A)  $\begin{array}{|l|lcc|}
\hline \text {Raw Material Inventory}\
\hline \text {Accounts Payable}\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Accounts Payable}\
\hline 
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline \text {Finished Goods Inventory}\
\hline \text {Accounts Payable}\
\hline 
\end{array}$ 
D)  $\begin{array}{|l|lcc|}
\hline \text {Accounts Payable}\
\hline \text {Raw Materials Inventory}\
\hline 
\end{array}$ 
A)  $\begin{array}{|l|lcc|}
\hline \text {Raw Material Inventory}\
\hline \text {Accounts Payable}\
\hline 
\end{array}$ 
B)  $\begin{array}{|l|lcc|}
\hline \text {Work-in-Process Inventory}\
\hline \text {Accounts Payable}\
\hline 
\end{array}$ 
C)  $\begin{array}{|l|lcc|}
\hline \text {Finished Goods Inventory}\
\hline \text {Accounts Payable}\
\hline 
\end{array}$ 
D)  $\begin{array}{|l|lcc|}
\hline \text {Accounts Payable}\
\hline \text {Raw Materials Inventory}\
\hline 
\end{array}$

Question 11

Record in general journal form the following transactions for Marble Manufacturing:
Feb. 4  $\quad $Raw materials of $\$ 7,500$ were issued from the storeroom.
Feb. 7 $\quad $ Charged $\$ 18,000$ of direct labor to production.
Feb. 10  $\quad $Supplies costing $\$ 5,300$ were issued from the storeroom.
Feb. 15  $\quad $The following expenses were charged to overhead: depreciation  $\quad $$\$ 4,000$, rent $\$ 3,000$, and electricity $\$ 2,000$.
Feb. 20 $\quad $ Overhead was applied at $80 \%$ of direct labor dollars.
Feb. 21  $\quad $Transferred completed goods costing $\$ 5,000$ to finished goods.

Accepted Answer

The answer of Record in general journal form the following...

Question 12

Sylvan Manufacturing applies overhead based on direct labor hours.At the beginning of the year,it estimated that overhead costs would be $75,000 and direct labor hours would be 10,000.The applied overhead rate per direct labor hour is:

Accepted Answer

A) $7.50. 
B) $15.00. 
C) $0.1333. 
D) none of the above. 
A) $7.50. 
B) $15.00. 
C) $0.1333. 
D) none of the above.

Question 13

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Accounts } \
\text { payable }
\end{array} & & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | c | c | c | c |

Question 14

Nails,depreciation,and foreman salaries are examples of:

Accepted Answer

A) raw materials. 
B) direct labor. 
C) manufacturing overhead. 
D) none of the above. 
A) raw materials. 
B) direct labor. 
C) manufacturing overhead. 
D) none of the above.

Question 15

The Overhead-Control account is used for the:

Accepted Answer

A) application of overhead to production and it has a debit balance. 
B) accumulation of all actual overhead costs and it has a credit balance. 
C) application of overhead to production and it has a credit balance. 
D) accumulation of all actual overhead costs and it has a debit balance. 
A) application of overhead to production and it has a debit balance. 
B) accumulation of all actual overhead costs and it has a credit balance. 
C) application of overhead to production and it has a credit balance. 
D) accumulation of all actual overhead costs and it has a debit balance.

Question 16

The formula for cost of goods manufactured is:

Accepted Answer

A) raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
B) raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
C) beginning work-in-process plus total manufacturing cost minus ending work-in-process. 
D) raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory. 
A) raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
B) raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory. 
C) beginning work-in-process plus total manufacturing cost minus ending work-in-process. 
D) raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory.

Question 17

Manufacturing cost includes:

Accepted Answer

A) raw material. 
B) direct labor. 
C) manufacturing overhead. 
D) All of these answers are correct. 
A) raw material. 
B) direct labor. 
C) manufacturing overhead. 
D) All of these answers are correct.

Question 18

Given the following accounts:
[1]Expense accounts.
[2]Accounts receivable
[3]Finished goods inventory.
[4]Work in process inventory.
[5]Raw materials inventory.
[6]Factory supplies inventory.
[7]Overhead applied
[8]Accumulated depreciation factory equipment
[9]Accounts payable.
[10]Payroll
[11]Utilities payable
[12]Sales.
[13]Raw materials purchases.
[14]Overhead-control.
[15]Cost of goods sold.
Indicate the account(s) to be debited and credited to record the following transactions.
-Issued supplies to production.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Given the following accounts:
[1]Expense accounts.
[2]Accounts receivable
[3]Finished goods...

Question 19

List four of the six source documents covered in this unit,and explain the function of each in the accounting process.

Accepted Answer

The six source documents are as follows:

Question 20

Raw Material is credited and Work-in-Process is debited when raw material is transferred to production.

Accepted Answer

A) True 
 B)False

Exam 25: Manufacturing Accounting

What is the journal entry to record the direct labor summarized on the labor distribution report?

The ending inventory for raw materials was understated.This error will cause:

Manufacturing overhead includes all manufacturing costs:

Indirect costs were understated.This error will cause:

The entry to record the requisition of supplies from the storeroom would include:

Which is not an example of a source document?

The work-in-process beginning inventory was overstated.This error will cause:

The Overhead Applied account is used to apply overhead costs to production.

A shop foreman's salary is not considered direct labor.

In a manufacturing company,the purchase of materials on account should be recorded as follows:

Sylvan Manufacturing applies overhead based on direct labor hours.At the beginning of the year,it estimated that overhead costs would be $75,000 and direct labor hours would be 10,000.The applied overhead rate per direct labor hour is:

Nails,depreciation,and foreman salaries are examples of:

The Overhead-Control account is used for the:

The formula for cost of goods manufactured is:

Manufacturing cost includes:

List four of the six source documents covered in this unit,and explain the function of each in the accounting process.

Raw Material is credited and Work-in-Process is debited when raw material is transferred to production.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Filters