1. 1)
The formula for cost of goods manufactured is
a)
Raw materials plus direct labor minus overhead plus beginning
work-in-process inventory plus ending work-in-process
inventory.
b)
Raw materials minus direct labor plus over head plus beginning
work-in-process inventory plus ending work-in-process
inventory.
c)
Beginning work-in-process plus total manufacturing cost minus
ending work-in-process.
d)
Raw materials plus direct labor less overhead plus beginning
work-in-process inventory less ending work-in-process
inventory.
2)
Factory Supplies Expense, Depreciation Expense—Factory, and
Heat, Light, and Power—Factory appear on which section of the
worksheet?
a)
Statement of cost of goods manufactured
b)
Balance sheet
c)
Income statement
d)
Statement of cost of goods sold
3)
Direct labor includes the wages of
a)
An hourly worker producing the product.
b)
The shop foreman.

2. c)
Maintenance workers.
d)
Administrators.
4)
What is the journal entry to record issuing supplies from the
storeroom?
a)
Debit Overhead—Applied; credit Raw Materials Inventory
b)
Debit Overhead—Control; credit Supplies Inventory
c)
Debit Supplies Inventory; credit Overhead—Applied
d)
Debit Overhead—Applied; credit Supplies Inventory
5)
The statement of cost of goods manufactured includes
a)
Direct labor costs.
b)
Raw material costs.
c)
Manufacturing overhead.
d)
All of the above
6)
The entry to record the requisition of supplies from the
storeroom would include which of the following?
a)
Debit to Raw Materials; credit to Work-in-Process
b)
Debit to Overhead—Applied; credit to Overhead—Control
c)
Debit to Work-in-Process; credit to Overhead—Control
d)
Debit to Overhead—Control; credit to Supplies Inventory

3. 7)
Lumber used in constr
uction of a building is part of
a)
Raw material costs.
b)
Labor costs.
c)
Manufacturing overhead.
d)
None of the above
8)
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 $60,00; credit Work-in-Process
Inventory $60,000
c)
Debit Work-in-Process Inventory $60,000; credit Overhead—
Applied $60,00
d)
Debit Work-in-Process Inventory $80,000; credit Overhead—
Applied $80,000
9)
Raw material inventory appears on the
a)
Balance sheet.
b)
Income statement.
c)
Cost of goods manufactured statement.
d)

4. Both A and C
10)
What is the journal entry to record issuing raw materials from
the storeroom?
a)
Debit Raw Materials Inventory; credit Work-in-Process
b)
Debit Overhead—Control; credit Work-in-Process
c)
Debit Work-in-Process; credit Overhead—Control
d)
Debit Work-in-Process; credit Raw Materials Inventory
11)
The entry to rent expense of $9,000, supervision expense of
$19,000, and depreciation expense of $7,000 to overhead is
which of the following?
a)
Debit Overhead—Applied $35,000; credit Rent Expense $9,000;
credit Supervision $19,000; credit Depreciation Expense $7,000
b)
Debit Overhead—Control $35,000; credit Rent Expense $9,000;
Credit Supervision$19,000; Credit Depreciation Expense $7,000
c)
Debit Overhead—Applied $35,000; credit Overhead—Control
$35,000
d)
None of the above
12)
In a manufacturing company, the purchase of materials on
account should be recorded as follows:
a)
Raw Materials Inventory Accounts Payable
b)
Work-in-Process Inventory Accounts Payable
c)
Finished Goods Inventory Accounts Payable

5. d)
Accounts Payable Raw Materials Inventory
13)
The entry for indirect materials (such as glue, etc.)
requisitioned for use in production is which of the following?
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 the above
14)
Calculate the cost of goods sold when beginning finished goods
inventory equals $70,000, ending finished goods inventory is
$85,000, and cost of goods manufactured is $600,000.
a)
$615,000
b)
$445,000
c)
$686,000
d)
$585,000
15)
If direct labor for the month is $40,000, overhead is applied
based on direct labor, annual overhead is $600,000, and annual
direct labor is $1,000,000, what is the entry to charge direct
labor to production?
a)
Debit Work-in-Process Inventory $40,000; credit Payroll
$40,000
b)
Debit Overhead—Applied $40,000; credit Work-in-Process

6. Inventory $40,000
c)
Debit Work-in-Process Inventory $24,000; credit Overhead—
Applied $24,000
d)
Debit Work-in-Process Inventory $66,000; credit Overhead—
Applied $66,000
16)
What is the journal entry to record the direct labor summarized
on the labor distribution report?
a)
Debit Finished Goods; credit Payroll
b)
Debit Work-in-Process; credit payroll
c)
Debit Payroll; credit Direct Labor
d)
Debit Payroll; credit Cash
17)
Omega.com sold 25 jet skis for $7,000, which cost $5,000. The
entry to record the sale would include a
a)
Credit to Finished Goods Inventory for $5,000.
b)
Credit to Sales for $7,000.
c)
Debit to Cost of Goods Sold for $5,000.
d)
All of the above
18)
Manufacturing overhead includes all manufacturing cost,
a)
Including raw materials.
b)
Including overhead.
c)

7. Excluding raw materials and direct labor.
d)
None of the above
19)
During the week ending on 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 which
of the following?
a)
Debit Work-in-Process Inventory $4,800 and Overhead—
Control $1,200
b)
Debit Work-in-Process Inventory $6,000
c)
Debit Work-in-Process Inventory $4,800 and Overhead—
Applied $1,200
d)
Debit Work-in-Process Inventory $4,800 and Indirect Labor
Expense $1,200
20)
Candyland completed the manufacturing process. The entry to
transfer the product to finished goods is which of the following?
a)
Raw Materials Inventory
b)
Finished Goods Inventory Cost of Goods Sold
c)
Finished Goods Inventory Work-in-Process Inventory
d)
Finished Goods Inventory Raw Materials Inventory