Question 1

The balance of the Manufacturing Summary account is closed into the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 2

In adjusting entries for a manufacturing business, the beginning balance of the work in process inventory is eliminated by crediting Work in Process Inventory and debiting

Accepted Answer

A)   Finished Goods Inventory.
B)   Manufacturing Summary.
C)   Income Summary.
D)   Merchandise Inventory.E) All of the above
F) B) and D)

Question 3

For a manufacturing business, net sales minus cost of goods ____________________ equals gross profit on sales.

Accepted Answer

The answer of For a manufacturing business, net sales minus...

Question 4

The following information appears on the income statement of the Richer Company at the end of the year.   Beginning finished goods inventory $200,000 Ending finished goods inventory 180,000 Sales 360,000 Cost of Goods Manufactured 120,000\begin{array}{lr}	ext { Beginning finished goods inventory } & \$ 200,000 \	ext { Ending finished goods inventory } & 180,000 \	ext { Sales } & 360,000 \	ext { Cost of Goods Manufactured } & 120,000\end{array} Beginning finished goods inventory  Ending finished goods inventory  Sales  Cost of Goods Manufactured ​$200,000180,000360,000120,000​  Gross Profit on Sales was:

Accepted Answer

A)   $140,000.
B)   $160,000.
C)   $200,000.
D)   $220,000. Cost of Goods Sold = 200,000 + 120,000 - 180,000 = 140,000.Gross Profit = 360,000 - 140,000 = 220,000. E) A) and B)
F) A) and C)

Question 5

Products that are only partially completed are called work in process.

Accepted Answer

A) True 
 B)False

Question 6

The accounts and the Adjusted Trial Balance section of Spencer Manufacturing's worksheet are given below.  Instructions:
(1) Enter the account names in the Account Name column and the adjusted trial balance in the Adjusted Trial Balance columns of a 12-column manufacturing worksheet. Or use a 10-column worksheet and use the last four columns, changing the column headings as needed.
(2) Extend the balances to the appropriate columns and complete the worksheet for the year ended December 31, 2013.
(3) Record the closing entries for all revenue and expense accounts and the Manufacturing Summary account on page 9 of a general journal. Omit descriptions.

Accepted Answer

The answer of The accounts and the Adjusted Trial Balance...

Question 7

The three components of total manufacturing cost are

Accepted Answer

A)   cost of goods manufactured, cost of goods sold, and work in process.
B)   raw materials used, direct labor, and manufacturing overhead.
C)   selling expenses, administrative expenses, and manufacturing overhead.
D)   raw materials used, direct labor, and cost of goods sold.E) A) and B)
F) A) and C)

Question 8

Reversing entries are required by

Accepted Answer

A)   the Internal Revenue Service.
B)   Generally Accepted Accounting Principles.
C)   the International Accounting Standards Board.
D)   none of the above.E) B) and D)
F) B) and C)

Question 9

What are the three inventory accounts for a manufacturing firm? List the three inventory accounts and indicate for each the name(s) of the statement(s) in which it appears.

Accepted Answer

The answer of What are the three inventory accounts for...

Question 10

The following information appears on the Statement of Cost of Goods Manufactured for the Coleman Company at the end of the year.   Raw Materials Used $50,000 Manufacturing Overhead 60,000 Total Manufacturing Costs 170,000 Work in Process Inventory, January 1 10,000 Cost of Goods Manufactured 150,000\begin{array} { l r } 	ext { Raw Materials Used } & \$ 50,000 \	ext { Manufacturing Overhead } & 60,000 \	ext { Total Manufacturing Costs } & 170,000 \	ext { Work in Process Inventory, January 1 } & 10,000 \	ext { Cost of Goods Manufactured } & 150,000\end{array} Raw Materials Used  Manufacturing Overhead  Total Manufacturing Costs  Work in Process Inventory, January 1  Cost of Goods Manufactured ​$50,00060,000170,00010,000150,000​  The balance in Work in Process Inventory at year-end was:

Accepted Answer

A)   $30,000.
B)   $40,000.
C)   $60,000.
D)   $20,000. Ending Work in Process Inventory = 10,000 + 170,000 - 150,000 = 30,000. E) A) and D)
F) A) and C)

Question 11

Raw Materials Used is not an element of manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 12

The raw materials inventory is shown in the ____________________ section of the balance sheet of a manufacturing business.

Accepted Answer

The answer of The raw materials inventory is shown in...

Question 13

Bolton Company's total manufacturing cost for the year was $1,785,000. The firm's manufacturing overhead was $315,000, and its cost of raw materials used was $842,000. What was the direct labor cost for the year?

Accepted Answer

The answer of Bolton Company's total manufacturing cost for the...

Question 14

If the ending finished goods inventory is greater than the beginning finished goods inventory, the cost of goods sold will be higher than the cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 15

The beginning and ending ____________________ inventories appear in the Cost of Goods Sold section of the income statement of a manufacturing business.

Accepted Answer

The answer of The beginning and ending ____________________ inventories appear...

Question 16

The Balance Sheet headings and the accounts and their balances for Exemplar Manufacturing are listed in alphabetical order. Exemplar Manufacturing has a fiscal year end of June 30, 2013. 
-Using the information given, prepare the Balance Sheet for Exemplar Manufacturing. Include correct indentations, underlines, dates, and capitalization where needed.

Accepted Answer

The answer of The Balance Sheet headings and the accounts...

Question 17

The Indirect Labor account is closed by crediting it and debiting

Accepted Answer

A)   Wages Payable.
B)   Income Summary.
C)   Manufacturing Summary.
D)   Wages Expense.E) B) and C)
F) All of the above

Question 18

Six adjusting entries are made for inventory accounts in a manufacturing operation.

Accepted Answer

A) True 
 B)False

Question 19

Using only the relevant items from the information given, determine the total product cost for Donnybrook Corporation, a manufacturer of children's furniture. All materials purchased were used in inventory during the current period. There was no beginning inventory.

Accepted Answer

The answer of Using only the relevant items from the...

Question 20

The ending balance of the work in process inventory is recorded by debiting Work in Process Inventory and crediting

Accepted Answer

A)   Income Summary.
B)   Cost of Goods Sold.
C)   Manufacturing Summary.
D)   Merchandise Inventory.E) B) and C)
F) A) and D)

Exam 26: Accounting for Manufacturing Activities

Products that are only partially completed are called work in process.

Correct Answer
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Correct Answer
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Reversing entries are required by

Correct Answer
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If the ending finished goods inventory is greater than the beginning finished goods inventory, the cost of goods sold will be higher than the cost of goods manufactured.

Correct Answer
verified

Using only the relevant items from the information given, determine the total product cost for Donnybrook Corporation, a manufacturer of children's furniture. All materials purchased were used in inventory during the current period. There was no beginning inventory.

Correct Answer
verified

The balance of the Manufacturing Summary account is closed into the Income Summary account.

Correct Answer
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Six adjusting entries are made for inventory accounts in a manufacturing operation.

Correct Answer
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Correct Answer
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Raw Materials Used is not an element of manufacturing overhead.

Correct Answer
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What are the three inventory accounts for a manufacturing firm? List the three inventory accounts and indicate for each the name(s) of the statement(s) in which it appears.

Correct Answer
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The Indirect Labor account is closed by crediting it and debiting

Correct Answer
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The beginning and ending ____________________ inventories appear in the Cost of Goods Sold section of the income statement of a manufacturing business.

Correct Answer
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For a manufacturing business, net sales minus cost of goods ____________________ equals gross profit on sales.

Correct Answer
verified

Correct Answer
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The raw materials inventory is shown in the ____________________ section of the balance sheet of a manufacturing business.

Correct Answer
verified

The ending balance of the work in process inventory is recorded by debiting Work in Process Inventory and crediting

Correct Answer
verified

In adjusting entries for a manufacturing business, the beginning balance of the work in process inventory is eliminated by crediting Work in Process Inventory and debiting

Correct Answer
verified

The three components of total manufacturing cost are

Correct Answer
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Bolton Company's total manufacturing cost for the year was $1,785,000. The firm's manufacturing overhead was $315,000, and its cost of raw materials used was $842,000. What was the direct labor cost for the year?

Correct Answer
verified

Correct Answer
verified

Exam 26: Accounting for Manufacturing Activities

Products that are only partially completed are called work in process.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Reversing entries are required by

Correct AnswerverifiedShow Answer

If the ending finished goods inventory is greater than the beginning finished goods inventory, the cost of goods sold will be higher than the cost of goods manufactured.

Correct AnswerverifiedShow Answer

Using only the relevant items from the information given, determine the total product cost for Donnybrook Corporation, a manufacturer of children's furniture. All materials purchased were used in inventory during the current period. There was no beginning inventory.

Correct AnswerverifiedShow Answer

The balance of the Manufacturing Summary account is closed into the Income Summary account.

Correct AnswerverifiedShow Answer

Six adjusting entries are made for inventory accounts in a manufacturing operation.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Raw Materials Used is not an element of manufacturing overhead.

Correct AnswerverifiedShow Answer

What are the three inventory accounts for a manufacturing firm? List the three inventory accounts and indicate for each the name(s) of the statement(s) in which it appears.

Correct AnswerverifiedShow Answer

The Indirect Labor account is closed by crediting it and debiting

Correct AnswerverifiedShow Answer

The beginning and ending ____________________ inventories appear in the Cost of Goods Sold section of the income statement of a manufacturing business.

Correct AnswerverifiedShow Answer

For a manufacturing business, net sales minus cost of goods ____________________ equals gross profit on sales.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The raw materials inventory is shown in the ____________________ section of the balance sheet of a manufacturing business.

Correct AnswerverifiedShow Answer

The ending balance of the work in process inventory is recorded by debiting Work in Process Inventory and crediting

Correct AnswerverifiedShow Answer

In adjusting entries for a manufacturing business, the beginning balance of the work in process inventory is eliminated by crediting Work in Process Inventory and debiting

Correct AnswerverifiedShow Answer

The three components of total manufacturing cost are

Correct AnswerverifiedShow Answer

Bolton Company's total manufacturing cost for the year was $1,785,000. The firm's manufacturing overhead was $315,000, and its cost of raw materials used was $842,000. What was the direct labor cost for the year?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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