1. In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense. (Points : 1) True False
2. 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? (Points : 1) $24,000 $66,000 $ 6,000 $34,000 None of these is correct
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3. Which of the following is an industry that would use a process costing system rather than a job order costing system? (Points : 1) Custom furniture manufacturer Music production studio Paint manufacturer Home remodeling contractor |
4. Village Company's selected cost data for 2012 are shown below:
Cost of goods manufactured | $145,200 | Work in process inventory, Jan. 1, 2012 | 18,500 | Work in process inventory, Dec. 31, 2012 | 22,500 | Direct materials used | 15,800 |
Assuming manufacturing overhead costs of $83,375, what is the amount of direct labor incurred by Village Company in 2012? (Points : 1) $50,025 $62,550 $41,700 $83,400 None of these is correct
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5. Indirect materials and indirect labor are tracked to individual job costing records and recorded in the Work in process account. (Points : 1) True False |
6. The journal entry to issue $500 of direct materials and $30 of indirect materials to production includes which of the following? (Points : 1) Debit to Work in process for $500 and debit to Finished goods for $30 Debit to Manufacturing overhead for $530 Debit to Work in process for $500 and debit to Manufacturing overhead for $30 Debit to Work in process inventory for $530 |
7. Which of the following companies would NOT use job order costing? (Points : 1) A lawn maintenance company A legal firm An auto repair shop A beverage manufacturer |
8. The sales manager for Baker Products told the shipping department to ship an order to a customer on the last day of December instead of the previously scheduled shipping date of January 2. This would allow the company to book the sales revenue in the year just ended and boost year-end profit. Although done deliberately to boost income, the action did not misrepresent any facts of the situation, and so it would not be considered unethical. (Points : 1) True False |
9. 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 operating income for 2012? (Points : 1) $250,000 $140,000 $ 30,000 $ 90,000 None of these is correct |
10. Which of the following describes the cost of goods manufactured? (Points : 1) The cost of the goods that were sold during the period The total cost of all goods that were completed, or partially completed during the period The cost of those goods which were completed during the period The total costs in inventory at the end of the period |
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