1. On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below.
During June, the following transactions took place:
Materials 10,000 Work in process inventory 20,000 Finished goods inventory 25,000 Manufacturing overhead 41,000
June 2: Issue $2,400 of direct materials and $200 of indirect materials to production.
Following this transaction, what was the balance in the Work in process inventory account?
A) $20,000
B) $22,400
C) $22,600
D) $20,200
2. Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
Total manufacturing overhead estimated at the beginning of the year: $140,000
Total direct labor costs estimated at the beginning of the year: $350,000
Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours
Actual manufacturing overhead costs for the year: $159,000
Actual direct labor costs for the year: $362,000
Actual direct labor hours for the year: 12,400 direct labor hours
Based on the data above, how much manufacturing overhead was allocated to production? (Please round to nearest whole dollar.)
A) $825,360
B) $905,000
C) $144,800
D) $159,280
3. The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000
What is the cost of goods available for sale for 2012?
A) $140,000
B) $126,000
C) $104,000
D) $130,000
4. At the beginning of 2011, the Taylor Company's work in process inventory account had a balance of $30,000. During 2011, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Manufacturing overhead in 2011 amounted to $90,000. The cost of goods manufactured was $220,000 in 2011.
What is the balance in work in process inventory on December 31, 2011?
A) $24,000
B) $66,000
C) $6,000
D) $34,000
5. Management accounting is influenced significantly by rules of GAAP and guidelines of the Securities Exchange Commission. (Points : 1)
True
False
True
False
6. The journal entry to issue $500 of direct materials and $30 of indirect materials to production includes which of the following?
A) Debit to Work in process for $500 and debit to Finished goods for $30
B) Debit to Manufacturing overhead for $530
C) Debit to Work in process for $500 and debit to Manufacturing overhead for $30
D) Debit to Work in process inventory for $530
7. The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000
What is the gross profit for 2012?
A) $120,000
B) $130,000
C) $140,000
D) $136,000
8. In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense.
True
Fasle
9. The journal entry to record the incurrence of $1,500 of direct labor and $200 of indirect labor includes which of the following?
A) Debit to Manufacturing overhead for $1,700
B) Debit to Work in process inventory for $1,500 and debit to Finished goods for $200
C) Debit to Work in process inventory for $1,700
D) Debit to Work in process for $1,500, debit to Manufacturing overhead for $200
10. Which of the following statements is INCORRECT?
A) Managerial accounting is used to determine the cost of products and services.
B) Managerial accounting is used to plan and control business operations.
C) Managerial accounting is used to report the company's financial position and results of operations to creditorsand investors.
D) Managerial accounting is used to prepare budgets.
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