1. Direct labor includes the wages of __________.
A. an hourly worker producing the product
B. the shop foreman
C. maintenance workers
D. administrators

2. Manufacturing overhead includes all manufacturing costs __________.
A. including raw materials
B. including overhead
C. excluding raw materials and direct labor
D. none of the above

3. 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 $60,000.
A $615,000
B $445,000
C $685,000
D $585,000

4. 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 overhead 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

5. Raw material inventory appears on the __________.
A. balance sheet
B. income statement
C. cost of goods manufactured statement
D. both A and C

6. 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

7. What is the journal entry to record issuing supplies from the storeroom?
A. Debit Overhead-Control; credit Supplies Inventory
B. Debit Overhead-Applied; credit Supplies Inventory
C. Debit Supplies Inventory; credit Overhead-Applied
D. Debit Overhead-Applied; credit Raw Materials Inventory

8. What is the journal entry to record issuing raw materials from the storeroom?
A. Debit Raw Materials Inventory; Credit Work-in-Process
B. Debit Work-in-Process; Credit Raw Materials Inventory
C. Debit Overhead-Control; Credit Work-in-Process
D. Debit Work-in-Process; Credit Overhead-Control

9. 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

10. In a manufacturing company, the purchase of materials on account should be recorded as follows:
Raw Materials Inventory
Accounts Payable

11. Journal entries crediting Payroll and debiting Work-in-Process Inventory are made for:
A. hourly manufacturing labor.
B. raw materials.
C. foremen's salaries.
D. administrative salaries.

12. The entry for indirect materials (such as glue, etc.. requisitioned for use in production is __________.
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

13. 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 __________.
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

14. The entry to record the requisition of supplies from the storeroom would include
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

15. Candyland completed the manufacturing process. The entry to transfer the product to finished goods is __________.
A.
Raw Materials Inventory
Finished Goods Inventory
B.
Finished Goods Inventory
Cost of Goods Sold
C.
Finished Goods Inventory
Work-in-Process Inventory
D.
Finished Goods Inventory
Raw Materials Inventory

16. Omega.com sold 25 jet skis for $7,000 which cost $5,000. The entry to record the sale would include __________.;
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

17. 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 $60,000; credit Work-in-Process Inventory $60,000
C. debit Work-in-Process Inventory $60,000; credit Overhead-Applied $60,000
D. debit Work-in-Process Inventory $80,000; credit Overhead-Applied $80,000

18. The entry to record rent expense $9,000, supervision expense $19,000, and depreciation expense $7,000 to overhead is __________.
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

19. 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 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