Question 1 (3 points)

The _______________________ summarizes the production and cost data for a department.

Question 1 options:

A)	Inventory Report

B)	Receiving Report

C)	Cost of production report

D)	None of the Above

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Question 2 (4 points)

Based on the predetermined factory overhead rate for Company Z, the company applied Factory Overhead totaling $4,569. Upon the completion of Job 569, it was determined that total factory overhead was $5,126. During the closeout process, Company Z should __________________________.

Question 2 options:

A)	Debit FOH $557; Credit Cost of Goods Sold $557

B)	Debit Cost of Goods Sold $557; Credit FOH $557

C)	Debit FOH $5,126; Credit Cost of Goods Sold $5,126

D)	None of the above

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Question 3 (3 points)

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Question 3 options:

	A) True
	B) False

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Question 4 (3 points)

The Davidson Company plans to increase its profits by expanding its company into 5 different states within the next 7 years. This is an example of ______________________.

Question 4 options:

A)	Operational planning

B)

Directing

C)	Strategic Planning

D)	None of the above

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Question 5 (3 points)

In the process cost system, direct labor costs are incurred by employees in each department who run the equipment and load and unload the product(s).

Question 5 options:

	A) True
	B) False

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Question 6 (3 points)

On the Balance Sheet, raw materials inventory is listed before finished goods inventory and work in process inventory because it is more liquid than the others.

Question 6 options:

	A) True
	B) False

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Question 7 (3 points)

In the process costing system, work in process inventory is transferred from Department E to Department F. The company should debit Work in Process - Department F and credit Work in Process - Department E.

Question 7 options:

	A) True
	B) False

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Question 8 (3 points)

When using the process costing system, the company uses one work in process account for each department.

Question 8 options:

	A) True
	B) False

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Question 9 (3 points)

Company A purchased $5,000 of raw materials on account for an upcoming job. The company should debit the Work in Process account and credit Accounts Payable.

Question 9 options:

	A) True
	B) False

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Question 10 (2 points)

Managerial accounting information includes both historical and estimated data.

Question 10 options:

	A) True
	B) False

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Question 11 (3 points)

Company Z reported Sales totaling $58,965 and a Gross Profit of $10,596. The Cost of Goods Sold for the company is ____________________.

Question 11 options:

A)

$69,561

B)

$48,369

C)

$117,930

D)	None of the above

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Question 12 (3 points)

Maintenance and repairs to equipment are considered service activities during the manufacturing process.

Question 12 options:

	A) True
	B) False

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Question 13 (3 points)

A manufacturing business reports three types of inventory on its balance sheet: raw materials inventory, work in process inventory, and finished goods inventory

Question 13 options:

	A) True
	B) False

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Question 14 (3 points)

The company controller for a manufacturing company is an example of ___________________.

Question 14 options:

A)	a staff position

B)	a line position

C)	management by exception

D)	none of the above

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Question 15 (3 points)

In the process costing system, accumulated depreciation is credited and charged to one particular department.

Question 15 options:

	A) True
	B) False

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Question 16 (5 points)

The fiscal year for Company T begins in January and ends in December. The Financial Statements for Company T for 2011 reported the totals below:

Sales	$15,000
Inventory 1/1/11	$12,000
Inventory 12/31/11	$7,000
Net Purchases	$3,000

The Cost of Merchandise Sold for Company T for 2011 is _________________________.

Question 16 options:

A)

$15,000

B)

$7,000

C)

$8,000

D)	None of the above

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Question 17 (3 points)

Property taxes on land is an example of __________________.

Question 17 options:

A)	direct cost

B)	factory overhead

C)	prime cost

D)	none of the above

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Question 18 (3 points)

A ______________________________ is prepared when materials that have been ordered are received and inspected.

Question 18 options:

A)	Purchase requisition

B)	Materials Requisition

C)	Receiving Report

D)	None of the Above

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Question 19 (4 points)

Based on the predetermined factory overhead rate for Company Z, the company applied Factory Overhead totaling $4,569. Upon the completion of Job 569, it was determined that total factory overhead was $5,126. Factory overhead was ___________________.

Question 19 options:

A)	Underapplied by $527

B)	Overapplied by $557

C)	Underapplied by $569

D)	None of the above

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Question 20 (3 points)

Company Z reported Sales totaling $58,965 and a Gross Profit of $10,596. The Cost of Goods Sold for the company was $69,561.

Question 20 options:

	A) True
	B) False

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Question 21 (4 points)

Company X estimates that it will use 7,000 direct labor hours, and it will incur total Factory Overhead costs of $21,000. Upon completion of the job, it was determined that the company actually used 6,239 direct labor hours. Using the predetermined factory overhead rate, the company prepare the journal entry below: ________________.

Question 21 options:

A)	Debit Work in Process $21,000; Credit FOH $21,000

B)	Debit Work in Process $18,717; Credit FOH $18,717

C)	Debit FOH $18,717; Credit Work in Process $18,717

D)	None of the above

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Question 22 (4 points)

Company H produced 8,125 units at a total cost of $40,625 and transferred them to finished goods inventory. On January 3, 2013, Company H sold 40,000 units to a vendor on account for $400,000. The company should record the entry below: _______________________.

Question 22 options:

A)	Debit Accounts Receivable $400,000; Credit Sales $400,000; Debit Cost of Goods Sold $200,000; Credit Finished Goods $200,000

B)	Debit Accounts Receivable $400,000; Credit Sales $400,000; Debit Cost of Goods Sold $400,000; Credit Finished Goods $400,000

C)	Debit Accounts Payable $400,000; Credit Sales $400,000; Debit Cost of Goods Sold $200,000; Credit Finished Goods $200,000

D)	None of the above

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Question 23 (5 points)

As of December 31, 2011, Company G reported Sales totaling $30,000. Merchandise Available for Sale totaling $10,000. Cost of Merchandise Sold was $4,000. Ending inventory for Company G was _______________________.

Question 23 options:

A)

$6,000

B)

$14,000

C)

$20,000

D)	None of the above

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Question 24 (3 points)

________________________ develops short-term actions for managing the day-to-day operations of the company.

Question 24 options:

A)	Operational Planning

B)	Strategic Planning

C)	Strategies

D)	None of the above

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Question 25 (3 points)

The Job Order and Process Cost Systems both use the periodic inventory systems for materials, work in process, and finished goods.

Question 25 options:

	A) True
	B) False

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Question 26 (3 points)

The primary objective of lean manufacturing is to increase the speed and quality, while reducing the cost of operations.

Question 26 options:

	A) True
	B) False

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Question 27 (3 points)

Steel totaling $7,089 was requisitioned from the storeroom for the Cutting Department using the process cost system. The company should ________________.

Question 27 options:

A)	Debit Work in Process - Cutting Department $7,089; Credit Raw Materials $7,089

B)	Debit Raw Materials $7,089; Credit Cash $7,089

C)	Debit Raw Materials $7,089; Credit Work in Process - Cutting Department $7,089

D)	None of the above

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Question 28 (3 points)

Working in Process totaling $6,234 was transferred from Department M to Department N. The company should _______________________.

Question 28 options:

A)	Debit Work in Process - Department M $6,234; Credit Work in Process - Department N $6,234

B)	Debit Work in Process - Department N $6,234; Credit Raw Materials $6,234

C)	Debit Work in Process - Department N $6,234; Credit Work in Process - Department M $6,234

D)	None of the above

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Question 29 (5 points)

The fiscal year for Company T begins in January and ends in December. The Financial Statements for Company T for 2011 reported the totals below:

Sales	$15,000
Inventory 1/1/11	$12,000
Inventory 12/31/11	$7,000
Net Purchases	$3,000

The Gross Profit for Company T for 2011 is _________________________.

Question 29 options:

A)

$15,000

B)

$7,000

C)

$8,000

D)	None of the above

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Question 30 (4 points)

Company X estimates that it will use 7,000 direct labor hours, and it will incur total Factory Overhead costs of $21,000. The company will sell the finished goods for $5.00 per unit. The predetermined factory overhead rate is ________________.

Question 30 options:

A)

$3.00

B)

$5.00

C)

$0.33

D)	None of the above