Question

1. Which of the following statements is true?

A. A process costing system will have a single work in process account

B. A process costing system will have a separate raw materials account for each of the major processes.

C. A process costing system will have a separate work in process account for each of the major processes

2. The journal entry to record the actual Manufacturing Overhead incurred includes

A. a debit to Manufacturing Overhead

B. a debit to cost of goods sold

C. a debit to finished goods

3. The journal entry to record expensing of goods sold includes:

A. a credit to finished goods

B. a credit to conversion costs

C. a debit to sales revenue

4. The journal entry to record the sale of goods includes:

A. a credit to cash

B. a debit to sales revenue

C. a credit to sales revenue

5. Which of the following would NOT be considered a part of manufacturing overhead?

A. Indirect Materials

B. Indirect Labor

C. Direct Materials

6. Madison Company transferred $300,000 from WIP Inventory 2 to Finished Goods Inventory. Units produced totaled 80,000. If they sold 20,000 units for $99,000 on account, which of the following would be part of the journal entry to record the sale?

A. Credit Sales Revenue for $99,000

B. Debit Accounts Receivable for $75,000

C. Credit Sales Revenue for $75,000

7. Madison Company transferred $300,000 from WIP Inventory 2 to Finished Goods Inventory. Units produced totaled 80,000. If they sold 20,000 units for $99,000 on account, which of the following would be part of the journal entry to expense the cost of the units sold?

A. debit Cost of Goods sold for $75,000

B. credit Cost of Goods sold for $75,000

C. debit Cost of Goods Sold for $99,000

8. If Manufacturing Overhead costs were over applied, which of the following is true?

A. Manufacturing Overhead has a credit balance

B. Actual Manufacturing Overhead costs were more than applied Conversion Costs

C. Manufacturing Overhead has a debit balance

9. If Manufacturing Overhead have been over applied,

A. Actual Manufacturing Overhead costs were more than applied Manufacturing Overhead

B. None of these

C. Actual Manufacturing Overhead costs were less than applied Manufacturing Overhead

10. The journal entry to assign Factory Labor into Work in Process Inv. would include a:

A. Credit to Factory Labor

B. Debit to Finished Goods Inv.

C. Debit to Factory Labor

Answer 1

Q1. Answer C. The process costing will have a separate work in process for each process.

Q2. Answer is A. Debit manufacturing overheads.

Q3. Answer is A. Credit to finished goods.

Q4. Answer is C. Credit to sales revenue.

Q5. Answer is C. Direct material.

Q6. Answer is A. Credit sales revenue $99000

Q7. Answer is A. debit cost of goods sold $ 75000

Q8. Answer is A. manufacturing overheads has credit balance.

Q9. Answer is C. Actual manufacturing OH is less than applied manufacturing Oh.

Q10. Answer is A. Credit to factory labour.