1) The journal entry to record depreciation on production equipment would include a:
A. Debit to Accumulated Depreciation - Equipment
B. Credit to Work-in-Process Inventory
C. Debit to Manufacturing Overhead
D. Credit to Cash
2) Overapplied manufacturing overhead exists when:
A. There is a debit balance in the manufacturing overhead account at the end of the period
B. Actual manufacturing overhead is less than applied manufacturing overhead
C. The products manufactured during a period are undercosted
D. Applied overhead is larger that direct labor
3) The journal entry to record the completion and transfer of the cost of goods manufactured includes a:
A. Debit to Cost of Goods Sold
B. Debit to Manufacturing Overhead
C. Credit to Finished Goods Inventory
D. Credit to Work-in-Process Inventory
4)The entry to close out a small amount of over applied manufacturing overhead would:
A. Decrease the cost of goods manufactured
B. Decrease finished goods inventory
C. Increase cost of goods sold
D. Increase net income
5) The direct materials price variance is calculated as:
A. (Standard Price - Actual Price) x Standard Quantity Allowed
B. (Actual Price - Standard Price) x Actual Quantity Purchased
C. (Standard Quantity Allowed - Actual Quantity Purchased) x Actual Price
D. (Actual Quantity Purchased - Standard Quantity Allowed) x Standard Price