CLASS / COURSE: Accounting

QUESTION DESCRIPTION:

1. When indirect materials are requisitioned from the materials storeroom and placed i.n production, an entry is made crediting Raw Materials Inventory and debiting: a. Work in Process Inventory. b. Cost of Goods Manufactured. c. Manufacturing Overhead Applied. d.Manufacturing Overhead.

2. The entry to record the application of overhead to jobs consists of a debit to and a credit to _ __a. Manufacturing Overhead Applied; Manufacturing Overhead __ b. Manufacturing Overhead; Manufacturing Overhead Applied c. Work in Process Inventory; Manufacturing Overhead Applied d.Manufacturing Overhead Applied; Work in Process Inventory

3. At the end of the fiscal year, any overapplied or underapplied overhead is: a.transferred to the Cost of Goods Sold account in an adjustment. b. shown on the balance sheet as either a deferred charge or a deferred credit. c.allocated to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory. d. transferred to the Cost of Goods Manufactured account in an adjustment.

4.Job order cost accounting is appropriate when there are continuous operations: a.on standard types of products. b.when a company produces more than one product in batches rather than on a continuous basis. c.only for goods produced on special order. d.for all manufacturing companies.

5. When a perpetual inventory system is used, sales revenue is recorded as products are sold: __a.but the cost of the goods sold is not recorded. __ b.and the cost of the goods sold is transferred from the Finished Goods Inventory account to the Cost of Goods Sold account. c.and the cost of the goods sold is transferred from the Work in Process Inventory account to the Cost of Goods Sold account. d.and the cost of goods sold is transferred from the Cost of Goods Manufactured to the Cost of Goods Sold account

. 6.A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the FIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be: a.$62.50. b.$60.00. c.$63.00. d.$60.50.

7. Job order cost sheets constitute a subsidiary ledger that supports the _____ account. a. Work in Process Inventory b.Finished Goods lnventory c. Raw Materials Inventory d.Cost of Goods Manufactured

8.Manufacturing overhead includes all of the following EXCEPT: a. indirect labor. b.direct labor. c.utilities. d.payroll taxes on factory labor.

 9.If manufacturing overhead is applied at a rate of$l.50 per direct labor dollar and the Department Bworker had worked 200 hours at $12.00 an hour on Job L1147, then the applied overhead would be: a.$ 3,600. b.$18. c.$ 300. d.$ 2,400.

At the end of the year the Manufacturing Overhead account is closed into what account? __a. Work in Process __b. Finished Goods __c. Cost of Goods Sold __d. Manufacturing Overhead Control

11.What form is presented at the storeroom to obtain materials or supplies for use in the factory? a.Materials Request Form b.Materials Requisition Form c.Raw Materials Ledger Card d.Production Order Form

12. During one month, 3,000 units of a product were completed and 800 units were 20-percent complete and still in process. The equivalent production for the month is: a.3,800 units. b.4,000 units. c.3,040 units. d.3,160 units.

 13. Process cost accounting is most appropriate: a. when there is continuous production on a single product. b.when a company produces more than one product in batches rather than on a continuous basis. c.for companies with either continuous or batch processing of different products. d.for all manufacturing companies.

14.A firm had 600 units in its work in process inventory at the beginning of a month. Of these units, 30 percent were complete with respect to labor, materials, and overhead. The firm transferred 5,000 units to the finished goods inventory during the month. It had 500 units of which 40 percent were complete and still in process at the end of the month. Equivalent production for the month was: a.5,680 units. b.5,380 units. c.5,200 units. d.5,180 units.

15.A department transferred 7,000 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 500 units were still in process at the end of the month. Equivalent production for the month was 7,400 units, and production costs incurred totaled $16,800. Inventory costs would be determined using a unit cost of: a.$2.27. b.$2.40. c.$2.24. d.$2.58.

16. A firm had no work in process at the beginning of a month. It transferred 4,000 units to finished goods dl;lring the month, and 500 units were still in process at the end of the month. Equivalent production for the month was 4,400 units. At what stage of completion were the unfinished units at the end of the month? a.67 percent b. 75 percent c. 20 percent d.80 percent

17.In a process cost accounting system: a.the Finished Goods Inventory account is debited for the cost of completed units any time during the month. b. the Work in Process Inventory accounts are used to accumulate the costs for labor, materials, and manufacturing overhead. c.manufacturing overhead is not included in the determination of inventory costs. d.inventory costs are calculated when goods are sold.

18.At the end of the month, the entry to close the Manufacturing Overhead control account is recorded as a debit to and a credit to a. Manufacturing Overhead Applied; Manufacturing Overhead b.Work in Process Inventory accounts; Manufacturing Overhead c.Manufacturing Overhead; the Work in Process inventory accounts d.Manufacturing Overhead; Manufacturing Summary

19.The method that combines the cost of beginning inventory and the current costs of the period is the: a.market value process costing method. b.method of net realizable value. c.replacement cost method. d.average method of process costing.

 20.Total costs accounted for in each department consist of the: a. cumulative cost plus the work in process-ending costs. b. total costs twnsferred out Jess the total work in processending costs. c. cumulative cost plus total costs transferred out. d.total costs transferred out plus the total work in process ending costs.

SOLUTION DESCRIPTION: Answers are attached in solution.

SUBJECTS / CATEGORIES:
1. Finance
2. Financial Management
3. Accounting
4. Corporate Finance