1.) When products held in inventory are sold:
A.)Cost of Goods Sold is credited.
B.)Work in Process Inventory is credited.
C.)Finished Goods Inventory is credited.
D.)Finished Goods Inventory is debited.
2.)Since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing units of product, these costs are credited t
A.) The Direct Materials Inventory, Direct Labor, and Manufacturing Overhead accounts respectively.
B.) Liability accounts.
C.) The Work in Process Inventory account.
D.) The Cost of Goods Sold account.
3.)Management accounting systems are designed to assist organizations in the performance of all of the following functions except:
A.) The assignment of decision-making authority over company assets.
B.) Planning and decision-making.
C.) Monitoring, evaluating, and rewarding performance.
D.) The preparation of income tax returns.
4.)In a schedule of cost of finished goods manufactured, the figure for total manufacturing costs:
A.) May be less than the cost of direct materials used.
B.) May be less than the direct labor costs assigned to production.
C.) May be less than the manufacturing overhead applied to production.
D.) May be less than the cost of finished goods manufactured.
5.) When a manufacturing company purchases raw materials or component parts to be used in manufacturing finished goods, these costs are initially debited to:
A.) Expense accounts.
B.) Raw Materials Inventory.
C.) Finished Goods Inventory.
D.) Manufacturing Overhead.
6.) The wages paid to employees working directly on a company's products would be shown as a:
A.) Credit to Direct Labor.
B.) Debit to Direct Labor.
C.) Credit to Work in Process.
D.) Debit to Manufacturing Overhead.
7.) Amounts credited to the Work in Process inventory account may best be described as:
A.) The cost of finished goods manufactured.
B.) Total manufacturing costs charged to production.
C.) The cost of goods sold.
D.) Direct materials purchased, direct labor costs paid, and payments for items classified as manufacturing overhead.