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1. In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense.
True
False
2. Which of the following describes the cost of goods manufactured?
The cost of the goods that were sold during the period
The total cost of all goods that were completed, or partially completed during the period
The cost of those goods which were completed during the period
The total costs in inventory at the end of the period
3. The following information pertains to Bright Toy Company’s operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $ 126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000
What is the gross profit for 2012?
$120,000
$130,000
$140,000
$136,000
None of these is correct
4. All manufacturing overhead costs incurred are accumulated as debits to a general ledger account titled Manufacturing overhead.
True
False
5. Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
Total manufacturing overhead estimated at the beginning of the year: $140,000
Total direct labor costs estimated at the beginning of the year: $350,000
Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours
Actual manufacturing overhead costs for the year: $159,000
Actual direct labor costs for the year: $362,000
Actual direct labor hours for the year: 12,400 direct labor hours
Based on the data above, how much manufacturing overhead was allocated to production? (Please round to nearest whole dollar.)
$825,360
$905,000
$144,800
$159,280
None of these is correct
6. When materials are requisitioned for a job, the materials inventory account is debited. (Points : 1)
True
False
7. The following information pertains to Bright Toy Company’s operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $ 126,000Selling and Administrative Expenses 90,000Merchandise inventory, 1/1/2012 14,000Merchandise inventory, 12/31/2012 10,000Sales Revenue 250,000
What is the cost of goods sold for 2012?
$104,000
$124,000
$130,000
$140,000None of these is correct
8. Process costing is used by companies that produce large numbers of identical units in a continuous fashion.
True False
9. Selected data for Young Company for 2012 is presented below:
Direct labor incurred $30,000
Indirect labor incurred 21,000
Factory depreciation 5,000
Factory utilities 7,000
Indirect materials used 2,000
Direct materials used 12,000
Property taxes on factory building 3,000
Sales commissions 8,000
What is the manufacturing overhead?
$47,000
$50,000
$38,000
$46,000
None of these is correct
10. Indirect materials and indirect labor are tracked to individual job costing records and recorded in the Work in process account.
True False
