Reference no: EM132235194
Questions: 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
2. Which of the following is an approach to sensitivity analysis?
A. contribution
B. distribution
C. margin
D. profit
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
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
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
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
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
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
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
10. Sensitivity analysis is part of __________.
A. income statement analysis
B. gross profit analysis
C. cost analysis
D. cost-volume-profit analysis
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)
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
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
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
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
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
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
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
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
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