Assignment
1. The entry to record the acquisition of raw materials on account is:
Accounts Payable Raw Materials Inventory
Manufacturing Overhead Raw Materials Inventory Accounts Payable
Work in Process Inventory Accounts Payable
Raw Materials Inventory Accounts Payable
2. Which is the last step in developing the master budget?
Preparing the budgeted balance sheet
Preparing the cost of goods manufactured budget
Preparing the cash budget
Preparing the budgeted income statement
3. In performing a vertical analysis, the base for sales revenues on the income statement is:
sales revenue.
net sales.
net income.
cost of goods available for sale.
4. An activity-based overhead rate is computed as follows:
actual overhead divided by estimated use of cost drivers.
actual overhead divided by actual use of cost drivers.
estimated overhead divided by estimated use of cost drivers.
estimated overhead divided by actual use of cost drivers.
5. Differences between a job order cost system and a process cost system include all of the following except the:
flow of costs.
unit cost computations.
point at which costs are totaled.
documents used to track costs.
6. At September 1, 2017, Baxter Inc. reported Retained Earnings of $423,000. During the month, Baxter generated revenues of $60,000, incurred expenses of $36,000, purchased equipment for $15,000 and paid dividends of $6,000. What is the balance in Retained Earnings at September 30, 2017?
$441,000 credit
$24,000 credit
$426,000 credit
$423,000 debit
7. Henson Company began the year with retained earnings of $380,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson's retained earnings at the end of the year?
$500,000
$460,000
$840,000
$540,000