Accounting Multiple Choice Questions
What is the journal entry to record the direct labor summarized on the labor distribution report?
Question 1 options:
Debit Payroll; credit Cash
Debit Work-in-Process; credit Payroll
Debit Payroll; credit Direct Labor
Debit Finished Goods; credit Payroll
Manufacturing overhead includes all manufacturing costs,
Question 2 options:
excluding raw materials and direct labor.
None of the above
Factory Supplies Expense, Depreciation Expense—Factory, and Heat, Light, and Power—Factory appear on which section of the worksheet?
Question 3 options:
Statement of cost of goods sold
Statement of cost of goods manufactured
The formula for cost of goods manufactured is
Question 4 options:
raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory.
raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory.
raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory.
beginning work-in-process plus total manufacturing cost minus ending work-in-process.
In a manufacturing company, the purchase of materials on account should be recorded as follows:
Question 5 options:
Raw Materials Inventory
Raw Materials InventoryAccounts Payable
Finished Goods Inventory
Omega.com sold 25 jet skis for $7,000, which cost $5,000. The entry to record the sale would include a
Question 6 options:
credit to Finished Goods Inventory for $5,000.
credit to Sales for $7,000.
debit to Cost of Goods Sold for $5,000.
All of the above
Raw material inventory appears on the
Question 7 options:
cost of goods manufactured statement.
Both a and c
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?
Question 8 options:
Debit Work-in-Process Inventory $80,000; credit Payroll $80,000
Debit Work-in-Process Inventory $80,000; credit Overhead—Applied $80,000
Debit Overhead—Applied $60,000; credit Work-in-Process Inventory $60,000
Debit Work-in-Process Inventory $60,000; credit Overhead—Applied $60,000
What is the journal entry to record issuing raw materials from the storeroom?
Question 9 options:
Debit Work-in-Process; credit Overhead—Control
Debit Work-in-Process; credit Raw Materials Inventory
Debit Raw Materials Inventory; credit Work-in-Process
Debit Overhead—Control; credit Work-in-Process
The entry for indirect materials (such as glue, etc.) requisitioned for use in production is which of the following?
Question 10 options:Raw Materials InventoryWork-in-Process InventoryWork-in-Process InventoryAccounts PayableWork-in-Process InventoryRaw Materials InventoryNone of the above
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?
Question 11 options:
Debit Overhead—Applied $40,000; credit Work-in-Process Inventory $40,000
Debit Work-in-Process Inventory $24,000; credit Overhead—Applied $24,000
Debit Work-in-Process Inventory $40,000; credit Payroll $40,000
Debit Work-in-Process Inventory $66,000; credit Overhead—Applied $66,000
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?
Question 12 options:
Debit Work-in-Process Inventory $4,800 and Overhead—Control $1,200
Debit Work-in-Process Inventory $4,800 and Overhead—Applied $1,200
Debit Work-in-Process Inventory $4,800 and Indirect Labor Expense $1,200
Debit Work-in-Process Inventory $6,000
Direct labor includes the wages of
Question 13 options:
the shop foreman.
an hourly worker producing the product.
What is the journal entry to record issuing supplies from the storeroom?
Question 14 options:
Debit Overhead—Control; credit Supplies Inventory
Debit Supplies Inventory; credit Overhead—Applied
Debit Overhead—Applied; credit Raw Materials Inventory
Debit Overhead—Applied; credit Supplies Inventory
The entry to record the requisition of supplies from the storeroom would include which of the following?
Question 15 options:
Debit to Overhead—Control; credit to Supplies Inventory
Debit to Raw Materials; credit to Work-in-Process
Debit to Work-in-Process; credit to Overhead—Control
Debit to Overhead—Applied; credit to Overhead—Control
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.
Question 16 options:
Journal entries crediting Payroll and debiting Work-in-Process Inventory are made for
Question 17 options:
hourly manufacturing labor.
Lumber used in construction of a building is part of
Question 18 options:
raw material costs.
None of the above
The entry to record rent expense of $9,000, supervision expense of $19,000, and depreciation expense of $7,000 to overhead is which of the following?
Question 19 options:
Debit Overhead—Applied $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
Debit Overhead—Control $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
Debit Overhead—Applied $35,000; credit Overhead—Control $35,000
None of the above
The statement of cost of goods manufactured includes
Question 20 options:
direct labor costs.
raw material costs.manufacturing overhead.