Multiple Choice Quiz


1	The typical inventories carried by a manufacturer include which of the following?
		A)	Raw materials, work-in-process, and merchandise.
		B)	Raw materials, work-in-process, and finished goods.
		C)	Office supplies, work-in-process, and merchandise.
		D)	Raw materials, finished goods, and cost of goods sold.
		E)	None of the above.


2	Which of the following is most likely to use a process costing system?
		A)	Custom cabinet-maker
		B)	Ship builder
		C)	Print shop
		D)	Petroleum refinery
		E)	None of the above


3	Which source document is described as a list of all the materials needed to manufacture a product or product component?
		A)	Bill of materials
		B)	Material requisition
		C)	Job-cost record
		D)	Purchase order
		E)	Vendor invoice


4	Which source document is described as a form completed by the production department supervisor to request the release of materials for production?
		A)	Bill of materials
		B)	Material requisition
		C)	Job-cost record
		D)	Purchase order
		E)	Time ticket


5	Which source document accumulates the costs of direct material, direct labor, and manufacturing overhead costs for a particular job or batch?
		A)	Bill of materials
		B)	Material requisition
		C)	Job-cost record
		D)	Purchase order
		E)	Time ticket


6	The volume-based cost driver is machine hours, which have been budgeted for 100,000 hours. Budgeted manufacturing-overhead costs are $150,000. The predetermined overhead rate is:
		A)	$0.75 per machine hour
		B)	$1.00 per machine hour
		C)	$10.00 per machine hour
		D)	not determinable from the information provided
		E)	none of the above


7	In a job-order costing system, the purchase of materials for producing units of product includes a debit to which of the following?
		A)	Work-in-Process Inventory
		B)	Raw-Material Inventory
		C)	Finished-Goods Inventory
		D)	Indirect materials
		E)	None of the above


8	The release of raw materials for production requires a journal entry that would include a debit to which of the following?
		A)	Work-in-Process Inventory
		B)	Raw-Material Inventory
		C)	Finished-Goods Inventory
		D)	Indirect materials
		E)	Manufacturing Supplies Inventory


9	The release of indirect materials to production requires a journal entry which includes a credit to which of the following?
		A)	Work-in-Process Inventory
		B)	Raw-Material Inventory
		C)	Finished-Goods Inventory
		D)	Indirect materials
		E)	Manufacturing Supplies Inventory


10	Time tickets for the two-week pay period total $34,500, of which $31,000 can be charged to particular jobs. The required journal entry will include a debit for $3,500 to which of the following?
		A)	Work-in-Process Inventory
		B)	Manufacturing Overhead
		C)	Wages Payable
		D)	Indirect Labor
		E)	Manufacturing Inventory


11	The recognition of the expiration of 1/12 of a prepaid factory rent of $144,000 will include a debit to which of the following?
		A)	Factory Rent Expense
		B)	Prepaid Factory Rent
		C)	Accounts Receivable
		D)	Manufacturing Overhead
		E)	None of the above


12	When using a perpetual inventory system, the sale of manufactured goods requires which of the following?
		A)	One journal entry
		B)	Two journal entries
		C)	Three journal entries
		D)	Four journal entries
		E)	No journal entries


13	A journal entry in which the Cost of Goods Sold is debited and Manufacturing Overhead is credited indicates which of the following?
		A)	Manufacturing overhead was underapplied
		B)	Manufacturing overhead was overapplied
		C)	The Cost of Goods Sold is overstated
		D)	An error occurred when determining the predetermined overhead rate
		E)	The predetermined overhead rate was overstated


14	Consider the following: Multiple Choice Quiz Image After proration of the overapplied manufacturing overhead, what will be the new balance of the Finished-Goods Inventory account?
		A)	$12,000
		B)	$12,600
		C)	$12,072
		D)	$11,928
		E)	None of the above


15	Consider the following: Multiple Choice Quiz Image What is the amount of under- or overapplied manufacturing overhead cost?
		A)	$2,000
		B)	$3,000
		C)	$4,000
		D)	$00
		E)	None of the above


16	Famous Job 124K was charged $45,000 for direct materials and $20,000 for direct labor. The total charges to the job-cost record for famous Job 124K were $105,000. What was the application rate as a percentage of direct-labor dollars?
		A)	50%
		B)	100%
		C)	200%
		D)	150%
		E)	None of the above


17	Famous Job 124K was charged $40,000 for direct materials. Total charges to the to the job-cost record for famous Job 124K were $100,000. The application rate is 50% of direct-labor dollars. What was the amount of direct-labor cost?
		A)	$30,000
		B)	$40,000
		C)	$60,000
		D)	Not enough information to determine the direct-labor cost
		E)	None of the above


18	Consider the following: Multiple Choice Quiz Image What is the adjusted cost of goods sold shown on the Schedule of Cost of Goods Sold?
		A)	$400,000
		B)	$398,000
		C)	$402,000
		D)	$412,000
		E)	$386,000


19	Consider the following: Multiple Choice Quiz Image Using a two-stage cost allocation process, what was the amount of rent charged to each unit of production of Department A if the Maintenance and Purchasing departments spend 60% of their time maintaining and purchasing supplies for Department A?
		A)	$1.89
		B)	$0.315
		C)	$1.9215
		D)	$2.10
		E)	None of the following

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