6) 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 these answers are correct.

7) During the week ended 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 for $4,800 and Overhead-Control for $1,200.

B) debit Work-in-Process Inventory for $6,000.

C) debit Work-in-Process Inventory for $4,800 and Overhead-Applied for $1,200.

D) debit Work-in-Process Inventory for $4,800 and Indirect Labor Expense for $1,200.

 

8) The entry to record the requisition of supplies from the storeroom would include:

A) debit to Raw Materials; and credit to Work-in-Process.

B) debit to Overhead-Applied; credit to Overhead-Control.

C) debit to Work-in-Process; and credit to Overhead-Control.

D) debit to Overhead-Control; and credit to Supplies Inventory.

 

9) 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

 

10) 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 $5,000.

B) credit to Sales for $7,000.

C) debit to Cost of Goods Sold for $5,000.

D) all of the above.

 

11) The Overhead-Control account is used for the:

A) application of overhead to production and it has a debit balance.

B) accumulation of all actual overhead costs and it has a credit balance.

C) application of overhead to production and it has a credit balance.

D) accumulation of all actual overhead costs and it has a debit balance.

 

12) The Overhead-Applied account is used for the:

A) application of overhead to production and it has a credit balance.

B) accumulation of all actual overhead costs and it has a credit balance.

C) application of overhead to production and it has a debit balance.

D) accumulation of all actual overhead costs and it has a debit balance.

 

13) The overhead application rate may be based on:

A) machine hours.

B) direct labor hours.

C) direct labor dollars.

D) All of these answers are correct.

14) Which of the following journal entries would be made to apply the cost of indirect labor to production?

A)

Work-in-Process Inventory

Overhead-Control

 

B)

Overhead-Applied

Work-in-Process Inventory

 

C)

Finished Goods Inventory

Overhead-Control

 

D)

Work-in-Process Inventory

Overhead-Applied

 

 

15) 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

 

 

 



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