Question-1
Calculate the cost of goods sold when beginning finished goods inventory equals $70,000, ending finished goods inventory is $85,000, and cost of goods manufactured is $600,000.
A. $615,000
B. $445,000
C. $685,000
D. $585,000
Question-2
Which of the following is an approach to sensitivity analysis?
A. contribution
B. distribution
C. margin
D. profit
Question-3
The formula for cost of goods manufactured is __________.
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-4
If direct labor for the month is $40,000, overhead is applied based on direct labor, annual overhead is $600,000, and annual direct labor is $1,000,000, what is the entry to charge direct labor to production?
A. debit Work-in-Process Inventory $40,000; credit Payroll $40,000
B. debit Overhead-Applied $40,000; credit Work-in-Process Inventory $40,000
C. debit Work-in-Process Inventory $24,000; credit Overhead-Applied $24,000
D. debit Work-in-Process Inventory $66,000; credit Overhead-Applied $66,000
Question-5
If direct labor for the month is $80,000 and overhead is applied based on 75% of direct labor dollars, what is the entry to apply overhead?
A. debit Work-in-Process Inventory $80,000; credit Payroll $80,000
B. debit Overhead-Applied $60,000; credit Work-in-Process Inventory $60,000
C. debit Work-in-Process Inventory $60,000; credit Overhead-Applied $60,000
D. debit Work-in-Process Inventory $80,000; credit Overhead-Applied $80,000
Question-6
An element of sensitivity analysis includes __________.
A. unidimensional changes (Incorrect)
B. a sole focus on profit
C. simultaneous changes
D. a financial accounting approach
Question-7
Which of the following is part of a firm's master budget?
A. pro forma budget (Incorrect)
B. inventory purchases budget
C. operating budget
D. schedule of cash receipts budget
Question-8
During the week ending on November 30, total factory payroll incurred was $6,000. Of this total, 80% was for direct labor. The entry to record the payroll distribution would include __________.
A. debit Work-in-Process Inventory $4,800 and Overhead-Control $1,200
B. debit Work-in-Process Inventory $6,000
C. debit Work-in-Process Inventory $4,800 and Overhead-Applied $1,200
D. debit Work-in-Process Inventory $4,800 and Indirect Labor Expense $1,200
Question-9
Candyland completed the manufacturing process. The entry to transfer the product to finished goods is __________.
A.
Raw Materials Inventory
Finished Goods Inventory
B.
Finished Goods Inventory
Cost of Goods Sold
C.
Finished Goods Inventory
Work-in-Process Inventory
D.
Finished Goods Inventory
Raw Materials Inventory
Question-10
Sensitivity analysis is part of __________.
A. income statement analysis
B. gross profit analysis
C. cost analysis
D. cost-volume-profit analysis
Question-11
The entry to record rent expense $9,000, supervision expense $19,000, and depreciation expense $7,000 to overhead is __________.
A. debit Overhead-Applied $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
B. debit Overhead-Control $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
C. debit Overhead-Applied $35,000; credit Overhead-Control $35,000
D. none of the above (Incorrect)
Question-12
What is the journal entry to record issuing supplies from the storeroom?
A. debit Overhead-Applied; credit Raw Materials Inventory
B. debit Overhead-Control; credit Supplies Inventory
C. debit Supplies Inventory; credit Overhead-Applied
D. debit Overhead-Applied; credit Supplies Inventory
Question-13
A budget enables managers to __________.
A. focus solely on production
B. adopt lax standards
C. abrogate responsibility for financial goals
D. achieve company objectives
Question-14
ABC Restaurant's revenue budget reflects the following information for February:
Food sales
$260,000
Beverage and liquor sales
$140,000
Total sales
$300,000
ABC expects revenue to increase by 5% during both March and April. What is the budgeted amount of beverage and liquor sales revenue for March?
A. $145,000
B. $154,350
C. $147,000
D. $150,000
Question-15
Manufacturing overhead includes all manufacturing costs __________.
A. including raw materials
B. including overhead
C. excluding raw materials and direct labor
D. none of the above
Question-16
Factory Supplies Expense, Depreciation Expense-Factory, and Heat, Light, and Power-Factory appear on which section of the worksheet?
A. statement of cost of goods manufactured
B. balance sheet
C. income statement
D. statement of cost of goods sold
Question-17
Omega.com sold 25 jet skis for $7,000 which cost $5,000. The entry to record the sale would include __________.
A. credit to Finished Goods Inventory for $5,000
B. credit to Sales for $7,000
C. debit to Cost of Goods Sold for $5,000
D. all of the above
Question-18
ABC Restaurant's revenue budget reflects the following information for February:
Food sales
$260,000
Beverage and liquor sales
$140,000
Total sales
$300,000
ABC expects revenue to increase by 5% during both March and April. What is the budgeted amount of food sales revenue for April?
A. $286,650
B. $272,650
C. $288,250
D. $292,350
Question-19
Journal entries crediting Payroll and debiting Work-in-Process Inventory are made for __________.
A. administrative salaries
B. hourly manufacturing labor
C. foremen's salaries
D. raw materials
Question-20
The entry to record the requisition of supplies from the storeroom would include __________.
A. debit to Raw Materials; credit to Work-in-Process
B. debit to Overhead-Applied; credit to Overhead-Control
C. debit to Work-in-Process; credit to Overhead-Control
D. debit to Overhead-Control; credit to Supplies Inventory
Calculate the cost of goods sold when beginning finished goods inventory equals $70,000, ending finished goods inventory is $85,000, and cost of goods manufactured is $600,000.
A. $615,000
B. $445,000
C. $685,000
D. $585,000
Question-2
Which of the following is an approach to sensitivity analysis?
A. contribution
B. distribution
C. margin
D. profit
Question-3
The formula for cost of goods manufactured is __________.
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-4
If direct labor for the month is $40,000, overhead is applied based on direct labor, annual overhead is $600,000, and annual direct labor is $1,000,000, what is the entry to charge direct labor to production?
A. debit Work-in-Process Inventory $40,000; credit Payroll $40,000
B. debit Overhead-Applied $40,000; credit Work-in-Process Inventory $40,000
C. debit Work-in-Process Inventory $24,000; credit Overhead-Applied $24,000
D. debit Work-in-Process Inventory $66,000; credit Overhead-Applied $66,000
Question-5
If direct labor for the month is $80,000 and overhead is applied based on 75% of direct labor dollars, what is the entry to apply overhead?
A. debit Work-in-Process Inventory $80,000; credit Payroll $80,000
B. debit Overhead-Applied $60,000; credit Work-in-Process Inventory $60,000
C. debit Work-in-Process Inventory $60,000; credit Overhead-Applied $60,000
D. debit Work-in-Process Inventory $80,000; credit Overhead-Applied $80,000
Question-6
An element of sensitivity analysis includes __________.
A. unidimensional changes (Incorrect)
B. a sole focus on profit
C. simultaneous changes
D. a financial accounting approach
Question-7
Which of the following is part of a firm's master budget?
A. pro forma budget (Incorrect)
B. inventory purchases budget
C. operating budget
D. schedule of cash receipts budget
Question-8
During the week ending on November 30, total factory payroll incurred was $6,000. Of this total, 80% was for direct labor. The entry to record the payroll distribution would include __________.
A. debit Work-in-Process Inventory $4,800 and Overhead-Control $1,200
B. debit Work-in-Process Inventory $6,000
C. debit Work-in-Process Inventory $4,800 and Overhead-Applied $1,200
D. debit Work-in-Process Inventory $4,800 and Indirect Labor Expense $1,200
Question-9
Candyland completed the manufacturing process. The entry to transfer the product to finished goods is __________.
A.
Raw Materials Inventory
Finished Goods Inventory
B.
Finished Goods Inventory
Cost of Goods Sold
C.
Finished Goods Inventory
Work-in-Process Inventory
D.
Finished Goods Inventory
Raw Materials Inventory
Question-10
Sensitivity analysis is part of __________.
A. income statement analysis
B. gross profit analysis
C. cost analysis
D. cost-volume-profit analysis
Question-11
The entry to record rent expense $9,000, supervision expense $19,000, and depreciation expense $7,000 to overhead is __________.
A. debit Overhead-Applied $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
B. debit Overhead-Control $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
C. debit Overhead-Applied $35,000; credit Overhead-Control $35,000
D. none of the above (Incorrect)
Question-12
What is the journal entry to record issuing supplies from the storeroom?
A. debit Overhead-Applied; credit Raw Materials Inventory
B. debit Overhead-Control; credit Supplies Inventory
C. debit Supplies Inventory; credit Overhead-Applied
D. debit Overhead-Applied; credit Supplies Inventory
Question-13
A budget enables managers to __________.
A. focus solely on production
B. adopt lax standards
C. abrogate responsibility for financial goals
D. achieve company objectives
Question-14
ABC Restaurant's revenue budget reflects the following information for February:
Food sales
$260,000
Beverage and liquor sales
$140,000
Total sales
$300,000
ABC expects revenue to increase by 5% during both March and April. What is the budgeted amount of beverage and liquor sales revenue for March?
A. $145,000
B. $154,350
C. $147,000
D. $150,000
Question-15
Manufacturing overhead includes all manufacturing costs __________.
A. including raw materials
B. including overhead
C. excluding raw materials and direct labor
D. none of the above
Question-16
Factory Supplies Expense, Depreciation Expense-Factory, and Heat, Light, and Power-Factory appear on which section of the worksheet?
A. statement of cost of goods manufactured
B. balance sheet
C. income statement
D. statement of cost of goods sold
Question-17
Omega.com sold 25 jet skis for $7,000 which cost $5,000. The entry to record the sale would include __________.
A. credit to Finished Goods Inventory for $5,000
B. credit to Sales for $7,000
C. debit to Cost of Goods Sold for $5,000
D. all of the above
Question-18
ABC Restaurant's revenue budget reflects the following information for February:
Food sales
$260,000
Beverage and liquor sales
$140,000
Total sales
$300,000
ABC expects revenue to increase by 5% during both March and April. What is the budgeted amount of food sales revenue for April?
A. $286,650
B. $272,650
C. $288,250
D. $292,350
Question-19
Journal entries crediting Payroll and debiting Work-in-Process Inventory are made for __________.
A. administrative salaries
B. hourly manufacturing labor
C. foremen's salaries
D. raw materials
Question-20
The entry to record the requisition of supplies from the storeroom would include __________.
A. debit to Raw Materials; credit to Work-in-Process
B. debit to Overhead-Applied; credit to Overhead-Control
C. debit to Work-in-Process; credit to Overhead-Control
D. debit to Overhead-Control; credit to Supplies Inventory
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