Reference no: EM132476871

Question 1: What is the journal entry to record the direct labor summarized on the labor distribution report?

1. DEBIT PAYROLL; CREDIT CASH
2. DEBIT WORK-IN-PROCESS; CREDIT PAYROLL
3. DEBIT PAYROLL; CREDIT DIRECT LABOR
4. DEBIT FINISHED GOODS; CREDIT PAYROLL

Question 2: Manufacturing overhead includes all manufacturing costs,

1. INCLUDING RAW MATERIALS.
2. INCLUDING OVERHEAD.
3. EXCLUDING RAW MATERIALS AND DIRECT LABOR.
4. NONE OF THE ABOVE

Question 3: Factory Supplies Expense, Depreciation Expense-Factory, and Heat, Light, and Power-Factory appear on which section of the worksheet?

1. STATEMENT OF COST OF GOODS SOLD
2. BALANCE SHEET
3. INCOME STATEMENT
4. STATEMENT OF COST OF GOODS MANUFACTURED

Question 4: The formula for cost of goods manufactured is

1. RAW MATERIALS MINUS DIRECT LABOR PLUS OVERHEAD PLUS BEGINNING WORK-IN-PROCESS INVENTORY PLUS ENDING WORK-IN-PROCESS INVENTORY.
2. RAW MATERIALS PLUS DIRECT LABOR MINUS OVERHEAD PLUS BEGINNING WORK-IN-PROCESS INVENTORY PLUS ENDING WORK-IN-PROCESS INVENTORY.
3. RAW MATERIALS PLUS DIRECT LABOR LESS OVERHEAD PLUS BEGINNING WORK-IN-PROCESS INVENTORY LESS ENDING WORK-IN-PROCESS INVENTORY.
4. BEGINNING WORK-IN-PROCESS PLUS TOTAL MANUFACTURING COST MINUS ENDING WORK-IN-PROCESS.

Question 5: In a manufacturing company, the purchase of materials on account should be recorded as follows:

1. Accounts Payable
2. Raw Materials Inventory
3. Accounts Payable
4. Finished Goods Inventory
5. Accounts Payable
6. Work-in-Process Inventory

Question 6: Omega.com sold 25 jet skis for $7,000, which cost $5,000. The entry to record the sale would include a

1. CREDIT TO FINISHED GOODS INVENTORY FOR $5,000.
2. CREDIT TO SALES FOR $7,000.
3. DEBIT TO COST OF GOODS SOLD FOR $5,000.
4. ALL OF THE ABOVE

Question 7: Raw material inventory appears on the

1. BALANCE SHEET.
2. INCOME STATEMENT.
3. COST OF GOODS MANUFACTURED STATEMENT.
4. BOTH A AND C

Question 8: 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?

1. DEBIT WORK-IN-PROCESS INVENTORY $80,000; CREDIT PAYROLL $80,000
2. DEBIT WORK-IN-PROCESS INVENTORY $80,000; CREDIT OVERHEAD-APPLIED $80,000
3. DEBIT OVERHEAD-APPLIED $60,000; CREDIT WORK-IN-PROCESS INVENTORY $60,000
4. DEBIT WORK-IN-PROCESS INVENTORY $60,000; CREDIT OVERHEAD-APPLIED $60,000

Question 9: What is the journal entry to record issuing raw materials from the storeroom?

1. DEBIT WORK-IN-PROCESS; CREDIT OVERHEAD-CONTROL
2. DEBIT WORK-IN-PROCESS; CREDIT RAW MATERIALS INVENTORY
3. DEBIT RAW MATERIALS INVENTORY; CREDIT WORK-IN-PROCESS
4. DEBIT OVERHEAD-CONTROL; CREDIT WORK-IN-PROCESS