1)

The entry to record other factory overhead costs incurred during the month would include

(2pts)

a debit to Factory Overhead.

a credit to Factory Overhead.

a debit to Work in Process.

a credit to Work in Process.

2)

Depreciation of factory buildings and equipment is an example of

(2pts)

direct labor.

direct materials.

factory overhead.

operating expenses.

3)

Which of the following products would most likely be accounted for using a process cost system?

(2pts)

custom-ordered trophies

luxury cruise ships

modeling clay

leather furniture

4)

To apply factory overhead to work in process, an entry is made

(2pts)

debiting Factory Overhead and crediting Work in Process.

debiting Work in Process and crediting Factory Overhead.

debiting Cost of Goods Sold and crediting Work in Process.

debiting Factory Overhead and crediting Cost of Goods Sold.

5)

Materials used in the manufacturing process that do not become a significant part of the finished products are called

(2pts)

indirect materials.

operating expenses.

direct materials.

administrative expenses.

6)

Materials and direct labor flow into which of the following accounts?

(2pts)

finished goods

work in process

cost of goods sold

operating expenses

7)

It is estimated that during the coming year, factory overhead costs will be $675,000 and direct labor costs will be $750,000. The predetermined overhead rate as a percentage of direct labor costs for that year would be

(2pts)

0.9%.

1.11%.

90%.

111%.

8)

Wages paid to those employees who devote their time to supervision or to work of a general nature are referred to as

(2pts)

indirect materials.

indirect labor.

direct materials.

direct labor.

9)

Under a perpetual inventory system, the sale of a manufactured product requires an entry

(2pts)

debiting Cost of Goods Sold and crediting Finished Goods.

debiting Cost of Goods Sold and crediting Work in Process.

debiting Finished Goods and crediting Work in Process.

debiting Finished Goods and crediting Cost of Goods Sold.

10)

When direct and indirect materials are issued into production from storage, an entry is made

(2pts)

debiting Work in Process, debiting Factory Overhead, and crediting Materials.

debiting Work in Process and crediting Materials.

debiting Materials, crediting Work in Process, and crediting Factory Overhead.

debiting Factory Overhead, crediting Work in Process, and crediting Materials.

11)

The inventory accounts used in a manufacturing business are

(2pts)

merchandise, materials, and work in process.

materials, work in process, and finished goods.

merchandise, materials, and finished goods.

merchandise, work in process, and finished goods.

12)

Products that have been completed and are ready for sale at the end of the accounting period are known as

(2pts)

materials.

work in process.

finished goods.

cost of goods sold.

13)

If a product is made to customers' orders or specifications or if products are made in separately identifiable "lots" or "batches," the appropriate cost accounting system is a

(2pts)

job order system.

process system.

perpetual system.

periodic system.

14)

Wages paid to those employees who devote their time to converting the materials into finished goods are called

(2pts)

indirect materials.

indirect labor.

direct materials.

direct labor.

15)

Production cost information is needed to assist with all of the following EXCEPT

(2pts)

setting selling prices.

controlling production costs.

determining overhead.

determining the net income or loss.

16)

A schedule of cost of goods manufactured shows all of the following EXCEPT

(2pts)

indirect materials.

beginning work in process.

goods available for sale.

ending work in process.

17)

The entry to recognize the completion and transfer of a job so that it can be placed in stock would include

(2pts)

debiting Finished Goods and crediting Cost of Goods Sold.

debiting Finished Goods and crediting Work in Process.

debiting Work in Process and crediting Cost of Goods Sold.

debiting Work in Process and crediting Finished Goods.

18)

To recognize indirect and direct factory labor cost for the month, an entry is made

(2pts)

debiting Payroll Expense, debiting Work in Process, and crediting Factory Overhead.

debiting Work in Process, debiting Factory Overhead, and crediting Payroll Expense.

debiting Work in Process, debiting Factory Overhead, and crediting Wages Payable.

debiting Factory Overhead, debiting Payroll Expense, and crediting Accounts Payable.

19)

The entry to record indirect labor costs incurred during the month would include a debit to

(2pts)

Wages Payable.

Factory Overhead.

Work in Process.

Materials.