Question 1
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
Question 2
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
Question 3
Direct labor includes the wages of __________.
A. an hourly worker producing the product
B. the shop foreman
C. maintenance workers
D. administrators
Question 9
What is the journal entry to record issuing supplies from the storeroom?
A. Debit Overhead-Control; credit Supplies Inventory
B. Debit Overhead-Applied; credit Supplies Inventory
C. Debit Supplies Inventory; credit Overhead-Applied
D. Debit Overhead-Applied; credit Raw Materials Inventory
Question 5
Total manufacturing costs for the month on the statement of costs of goods manufactured equals:
Question 6
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
Question 7
Lumber used in construction of a building is part of
A. raw material costs.
B. labor costs.
C. manufacturing overhead.
D. None of the above
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?
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
Question 9
Raw material inventory appears on the __________.
A. balance sheet
B. income statement
C. cost of goods manufactured statement
D. both A and C
Question 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
Question 12
In a manufacturing company, the purchase of materials on account should be recorded as follows:
Raw Materials Inventory
Accounts Payable
Question 13
The entry for indirect materials (such as glue, etc.. requisitioned for use in production is __________.
A.
Raw Materials Inventory
Work-in-Process Inventory
B.
Work-in-Process Inventory
Accounts Payable
C.
Work-in-Process Inventory
Raw Materials Inventory
D. None of the above
Question 14
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 $60,000.
A $615,000
B $445,000
C $685,000
D $585,000
Question 15
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
Question 16
What is the journal entry to record the direct labor summarized on the labor distribution report?
A. debit Finished Goods; credit Payroll
B. debit Work-in-Process; credit Payroll
C. debit Payroll; credit Direct Labor
D. debit Payroll; credit Cash
Question 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
Not sure on this one
Question 18
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
Question 19
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
Question 20
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
Part 2:
1. A $1,000 bond quoted at 104 would sell for:
a. $1,104
b. $1,000
c. $104
d. $1,040
2. When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at:
a. a premium
b. their face value
c. their maturity value
d. a discount
3. When a bond issued at face value is retired, the journal entry is:
a. debit Bond Interest Expense; credit Cash
b. debit Bonds Payable; credit Cash
c. debit Cash; credit Bonds Payable
d. debit Cash; credit Bond Interest Expense
4. The interest rate specified in the bond indenture is called the:
a. market rate.
b. discount rate.
c. contract rate.
d. effective rate.
5. An inflow of cash from investing activities would be: A) the issuance of stock. B) the sale of investment in equity securities. C) interest received on loans
6. When using the indirect method, which of the following would be included in the net cash flows from operating activities section of a cash flow statement?
a. Sales of plant, property and equipment
b. Making loans and paying out interest
c. Payment of interest and expenses
d. Issuing bonds and notes
7. If bonds are sold between interest payment dates, the amount of cash the issuer receives is:
a. more than the market value of the bonds.
b. less than the market value of the bonds.
c. equal to the market value of the bonds.
d. equal to the face value of the bonds
8. Bonds payable issued with collateral are called:
a. debenture bonds
b. serial bonds
c. callable bonds
d. secured bonds
9 A cash outflow from a financing activity would be
10 A statement of cash flows is helpful in:
All of the above: Comparing, Predicting future cash flows, evaluating
11 Assume the following account balances immediately after an interest payment date:
Bonds Payable $100,000
Premium on Bonds
Payable 5,000
If bonds are retired immediately at a total cost of $104,000, the journal entry to record this event is:
a. Cash 104,000
Loss on Bond Retirement 1,000
Premium on Bonds Payable 5,000
Bonds Payable 100,000
b. Bonds Payable 100,000
Premium on Bonds Payable 5,000
Cash 104,000
Gain on Bond Retirement 1,000
c. Bonds Payable 100,000
Loss on Bond Retirement 9,000
Premium on Bonds Payable 5,000
Cash 104,000
d. None of the above
Question 12
The statement of cash flows provides information about all of the following except:
A. organizing.
B. financing.
C. investing.
D. operating.
13. A fund set up so that a bond can be retired at maturity is called a:
a. sinking fund
b. bond payable fund
c. stock fund
d. retirement fund
14. On April 1, Braintree Corporation issued 10%, ten-year, $300,000 bonds at 106. The effective interest rate for these bonds is:
a. 10%
b. 9.43%
c. 4.7%
d. 5%
15. For a corporation, a premium on bonds results when:
a. the contract rate is greater than the market rate.
b. the contract rate is less than the market rate.
c. the face value is greater than the effective rate.
d. None of the above.
16. When preparing the statement of cash flows by the indirect method, if current liabilities increase the difference is:
a. added to net income.
b. added to investments.
c. deducted form net income.
d. subtracted from investments
17 Rick Corporation's Accounts Receivable decreased by $25,000 during the year. What is the adjustment to the cash flow statement when it is prepared by the indirect method?
a. Subtract the decrease from the net income in operating activities.
b. Add the decrease to the net income in operating activities.
c. Add the decrease in the investing activities section.
d. Subtract the decrease in the financing activities
18 under the indirect method, depreciation expense is added to net income to report cash flows from
19. A bond payable is similar to which of the following?
a. Accounts Payable
b. Accounts Receivable
c. Notes Payable
d. Cash
20. The difference between the direct and indirect method of computing the cash flow statement occurs in the. A. financing B. operating C. investing D. managing
21. When preparing the statement of cash flows by the indirect method, if accumulated depreciation increases the differences is:
a. added to net income.
b. added to investments.
c. deducted from net income.
d. not considered in the statement of cash flows using the indirect method
22. The activity that is probably the most important indicator of financial health is the net cash flow from
23 Transactions involving the purchase and sale of fixed assetswould be considered: A) buying and selling activities. B) financing activities C. Operating
24. 1. A $1,000 bond quoted at 96.5 would sell for:
a. $1,000
b. $965
c. $96.50
d. None of the above
25. If a bonds is issued at a premium, the effective interest rate is most likely _________ the contract interest rate.
a. higher than
b. lower than
c. the same as
d. Answer cannot be determined based on information given
26. Collins Corporation reported a net income of $35,000, depreciation expenses of $20,000, an increase in Accounts Payable of $2,000, and an increase in Accounts Receivable of $3,000. Net cash flow from operating activities using the indirect method is:
a. $55,000
b. $54,000
c. $50,000
d. $56,000
27 Bonds that are backed solely by the general credit of the coporation issuing the bonds, rather than by any specific type of secured assets are called?
28 A statement of cash flow's purpose is to A. show the revenue earned. B. show the profits that were generated. C. show the expenses that were incurred. D. show how cash was generated and used during an accounting period
29 A bond is issued for less than its face value. Which of the following statements most likely would explain why?
a. The bond's contract rate is lower than the market rate at the time of issue.
b. The bond's contract rate is the same as the market rate at the time of the issue.
c. The bond's contract rate is higher than the market rate at the time of the issue.
d. The bonds is not secured by specific assets of the corporation.