Financial Work

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1.Amounts debited to the Work in Process Inventory account may best be described as:

Direct materials purchased, direct labor costs paid, and payments for items classified as manufacturing overhead.

The cost of finished goods manufactured during the period.

Total manufacturing costs charged to production.

The cost of goods sold.

2.Which of the following costs would not be considered part of the manufacturing overhead of a furniture manufacturer?

The cost of compliance with federal factory safety regulations.

Depreciation expense on factory equipment.

The cost of grease used to lubricate factory equipment.

The cost of wood used in furniture construction.

3.Which of the following should not be classified as a manufacturing cost?

Indirect factory labor costs, such as salaries of plant security guards.

Direct materials used in the production process.

Utility bills related to factory operations.

Commissions paid to salespeople.

4.Which of the following is not a product cost?

Direct materials used.

Direct labor costs applicable to production.

Manufacturing overhead.

Advertising expense.

5.When inventory is sold:

Cost of Goods Sold is credited.

Work-in-Process Inventory is credited.

Finished Goods Inventory is credited.

Finished Goods Inventory is debited.

6.Costs that are traceable to a particular unit and are inventoriable are called:

Period costs

Product costs

Overhead costs

Job costs

7.If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?

Net income will be overstated.

Net income will be understated.

Net income will be unaffected.

Net income will be understated only if inventory levels rise.

8.Manufacturing companies normally have three types of inventory:

Direct materials, direct labor, and manufacturing overhead.

Materials, work in process, and finished goods.

Work in process, finished goods, and returned merchandise.

Economy, standard, and deluxe.

9.The salaries paid to employees working directly on a company's products would be shown as a:

Credit to Direct Labor

Debit to Direct Labor

Credit to Work-in-Process

Debit to Manufacturing Overhead

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

The beginning inventory of finished goods, plus net purchases, less the ending inventory of finished goods.

The sum of the manufacturing costs charged (debited) to the Work-in-Process Inventory account during the period.

The costs of direct materials, direct labor, and manufacturing overhead incurred in manufacturing the goods sold during the period.

The beginning inventory of work in process, plus total manufacturing costs for the period, less the ending inventory of work in process.

11.If it is the first year of operations and the cost of all work-in-process during the year is $940,000 and the cost of finished goods manufactured is $970,000, what is the value of the ending work-in-process inventory?

$0.

$30,000.

some other amount.

this is an impossible situation.

12.The cost of the employee who installs the leather on the seats of a new automobile would be considered

Manufacturing overhead

Indirect labor

Direct material

Direct labor

13.When goods are completed and come off the assembly line

Cost of Goods Sold is debited and Finished Goods Inventory is credited.

Work-in-Process Inventory is debited and Finished Goods Inventory is credited.

Finished Goods Inventory is debited and Cost of Goods Sold is credited.

Work-in-Process Inventory is credited and Finished Goods Inventory is debited.

14.The cost of the employee who computes total manufacturing costs would be considered:

Direct labor

Indirect labor

Manufacturing overhead

Administrative costs

15.York Co.'s ending inventory of...
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