1. All of the following statements regarding managementaccounting's role in assigning decision-making authority are trueexcept:
A. Since management accounting information is used for decisionmaking purposes, historical information is unnecessary.
B. Information from the management accounting system supportsdecision making.
C. The syllabus for a college course is a type of report thatoutlines students' decision-making responsibilities.
D. All members of an organization have some decision-makingability.
2. Which of the following costs would not be considered part ofthe manufacturing overhead of a furniture manufacturer?
A. The cost of compliance with federal factory safetyregulations.
B. Depreciation expense on factory equipment.
C. The cost of grease used to lubricate factory equipment.
D. The cost of wood used in furniture construction.
3. Which of the following costs would not be considered part ofthe manufacturing overhead of a chemical plant?
A. The costs of disposing of toxic waste materials.
B. Salaries of factory medical personnel.
C. Salaries of employees who operate distilling equipment usedin the production process.
D. The cost of complying with federal safety regulationsconcerning plant operations.
4. Duffy Brothers manufactures a single product using a processinvolving (1) mixing ingredients and (2) a subsequent packagingoperation. Duffy uses a process costing system to account for theflow of costs through its production process
4a) Refer to the information above. In the production processdescribed, what is the Work in Process Inventory: PackagingDepartment debited for?
A. Costs transferred from the Work in Process Inventory: MixingDepartment only.
B. The cost of materials, direct labor, and overhead applicableto the packaging operation only.
C. Costs transferred from the Work in Process Inventory: MixingDepartment, as well as materials, direct labor, and overheadapplicable to the packaging operation.
D. Costs transferred to the Finished Goods Inventory.
4b) Refer to the information above. In Duffy s operation, theFinished Goods Inventory account is debited for:
A. The cost of units transferred directly from the MixingDepartment.
B.The cost of units transferred directly from the PackagingDepartment.
C. The cost of units transferred directly from both the MixingDepartment and the Packaging Department.
D. The cost of the units sold.
5. Sue s Soup Products uses a process costing system with twoprocessing departments: the Mixing and Cooking Department and theCanning Department. Work in process inventories are reduced to zeroeach month. In March, the Mixing and Cooking Department incurredmanufacturing costs of $63,000 to mix 42,000 gallons of soup. TheCanning Department incurred manufacturing costs of $9,000. A totalof 170,000 cans of soup were transferred to the finished goodswarehouse during the month.
5A) Refer to the information above. The journal entry to recordthe transfer of soup out of the Mixing and Cooking Departmentduring March would include:
A. A debit to Work in Process Inventory, Mixing and CookingDepartment of $63,000.
B. A credit to Work in Process Inventory, Canning Department of$72,000.
C. A debit to Finished Goods Inventory of $72,000.
D. A credit to Work in Process Inventory, Mixing and CookingDepartment of $63,000.
5B) Refer to the information above. The journal entry to recordthe transfer of soup out of the Canning Department during Marchwould include:
A. A credit to Work in Process Inventory, Canning Department of$9,000.
B. A credit to Work in Process Inventory, Canning Department of$63,000.
C. A debit to Finished Goods Inventory of $72,000.
D. A credit to Finished Goods Inventory, Mixing and CookingDepartment of $72,000.
5C) Refer to the information above. The unit cost per gallon ofsoup transferred to the Canning Department during March was:
A. $1.50.
B. $1.62.
C. $1.71.
D. $1.83.
5D) Refer to the information above. The unit cost per can ofsoup transferred to the finished goods warehouse during Marchwas:
A. $0.05.
B. $0.42.
C. $0.37.
D. $1.71.
6. Evans Products uses a process costing system with twoprocessing departments: the Mixing Department and the FinishingDepartment. In June, unit costs incurred by the Mixing Departmentamounted to $4.00 per unit. Unit costs transferred to the finishedgoods warehouse during the month amounted to $22. Work-in-processinventories are reduced to zero each month.
Refer to the information above. If 80% of all inventory was soldat $32 per unit and 3,500 units were sold, what is the cost of thefinished goods inventory at year-end?
A. $16,800.
B. $77,000.
C. $19,250.
D. $96,250
1. All of the following statements regarding managementaccounting's role in assigning decision-making authority are trueexcept:
A. Since management accounting information is used for decisionmaking purposes, historical information is unnecessary.
B. Information from the management accounting system supportsdecision making.
C. The syllabus for a college course is a type of report thatoutlines students' decision-making responsibilities.
D. All members of an organization have some decision-makingability.
2. Which of the following costs would not be considered part ofthe manufacturing overhead of a furniture manufacturer?
A. The cost of compliance with federal factory safetyregulations.
B. Depreciation expense on factory equipment.
C. The cost of grease used to lubricate factory equipment.
D. The cost of wood used in furniture construction.
3. Which of the following costs would not be considered part ofthe manufacturing overhead of a chemical plant?
A. The costs of disposing of toxic waste materials.
B. Salaries of factory medical personnel.
C. Salaries of employees who operate distilling equipment usedin the production process.
D. The cost of complying with federal safety regulationsconcerning plant operations.
4. Duffy Brothers manufactures a single product using a processinvolving (1) mixing ingredients and (2) a subsequent packagingoperation. Duffy uses a process costing system to account for theflow of costs through its production process
4a) Refer to the information above. In the production processdescribed, what is the Work in Process Inventory: PackagingDepartment debited for?
A. Costs transferred from the Work in Process Inventory: MixingDepartment only.
B. The cost of materials, direct labor, and overhead applicableto the packaging operation only.
C. Costs transferred from the Work in Process Inventory: MixingDepartment, as well as materials, direct labor, and overheadapplicable to the packaging operation.
D. Costs transferred to the Finished Goods Inventory.
4b) Refer to the information above. In Duffy s operation, theFinished Goods Inventory account is debited for:
A. The cost of units transferred directly from the MixingDepartment.
B.The cost of units transferred directly from the PackagingDepartment.
C. The cost of units transferred directly from both the MixingDepartment and the Packaging Department.
D. The cost of the units sold.
5. Sue s Soup Products uses a process costing system with twoprocessing departments: the Mixing and Cooking Department and theCanning Department. Work in process inventories are reduced to zeroeach month. In March, the Mixing and Cooking Department incurredmanufacturing costs of $63,000 to mix 42,000 gallons of soup. TheCanning Department incurred manufacturing costs of $9,000. A totalof 170,000 cans of soup were transferred to the finished goodswarehouse during the month.
5A) Refer to the information above. The journal entry to recordthe transfer of soup out of the Mixing and Cooking Departmentduring March would include:
A. A debit to Work in Process Inventory, Mixing and CookingDepartment of $63,000.
B. A credit to Work in Process Inventory, Canning Department of$72,000.
C. A debit to Finished Goods Inventory of $72,000.
D. A credit to Work in Process Inventory, Mixing and CookingDepartment of $63,000.
5B) Refer to the information above. The journal entry to recordthe transfer of soup out of the Canning Department during Marchwould include:
A. A credit to Work in Process Inventory, Canning Department of$9,000.
B. A credit to Work in Process Inventory, Canning Department of$63,000.
C. A debit to Finished Goods Inventory of $72,000.
D. A credit to Finished Goods Inventory, Mixing and CookingDepartment of $72,000.
5C) Refer to the information above. The unit cost per gallon ofsoup transferred to the Canning Department during March was:
A. $1.50.
B. $1.62.
C. $1.71.
D. $1.83.
5D) Refer to the information above. The unit cost per can ofsoup transferred to the finished goods warehouse during Marchwas:
A. $0.05.
B. $0.42.
C. $0.37.
D. $1.71.
6. Evans Products uses a process costing system with twoprocessing departments: the Mixing Department and the FinishingDepartment. In June, unit costs incurred by the Mixing Departmentamounted to $4.00 per unit. Unit costs transferred to the finishedgoods warehouse during the month amounted to $22. Work-in-processinventories are reduced to zero each month.
Refer to the information above. If 80% of all inventory was soldat $32 per unit and 3,500 units were sold, what is the cost of thefinished goods inventory at year-end?
A. $16,800.
B. $77,000.
C. $19,250.
D. $96,250
Related questions
1.) When products held in inventory are sold:
A.)Cost of Goods Sold is credited.
B.)Work in Process Inventory is credited.
C.)Finished Goods Inventory is credited.
D.)Finished Goods Inventory is debited.
2.)Since manufacturing costs (direct materials, direct labor,and overhead) are incurred in the process of manufacturing units ofproduct, these costs are credited t
| A.) | The Direct Materials Inventory, Direct Labor, and ManufacturingOverhead accounts respectively. |
| B.) | Liability accounts. |
| C.) | The Work in Process Inventory account. |
| D.) | The Cost of Goods Sold account. |
3.)Management accounting systems are designed to assistorganizations in the performance of all of the following functionsexcept:
| A.) | The assignment of decision-making authority over companyassets. |
| B.) | Planning and decision-making. |
| C.) | Monitoring, evaluating, and rewarding performance. |
| D.) | The preparation of income tax returns. |
4.)In a schedule of cost of finished goods manufactured, thefigure for total manufacturing costs:
| A.) May be less than the cost of direct materials used. | |
| B.) May be less than the direct labor costs assigned toproduction. | |
| C.) May be less than the manufacturing overhead applied toproduction. | |
| D.) May be less than the cost of finished goodsmanufactured. |
5.) When a manufacturing company purchases raw materials orcomponent parts to be used in manufacturing finished goods, thesecosts are initially debited to:
| A.) Expense accounts. | |
| B.) Raw Materials Inventory. | |
| C.) Finished Goods Inventory. | |
| D.) Manufacturing Overhead. |
6.) The wages paid to employees working directly on a company'sproducts would be shown as a:
| A.) Credit to Direct Labor. | |
| B.) Debit to Direct Labor. | |
| C.) Credit to Work in Process. | |
| D.) Debit to Manufacturing Overhead. |
7.) Amounts credited to the Work in Process inventory accountmay best be described as:
| A.) The cost of finished goods manufactured. | |
| B.) Total manufacturing costs charged to production. | |
| C.) The cost of goods sold. | |
| D.) Direct materials purchased, direct labor costs paid, andpayments for items classified as manufacturing overhead. |
