2bb-blank-green-sheet

School: University of Illinois, Chicago - Course: ACCY 202 - Subject: Accounting

Module 2B(b) 1.Regency Company incurred $90,000 of depreciation for the year. Twenty percent relates to the firm's production facilities, and 80% relates to sales and administrative offices. If all items are handled in the proper manner, a review of the company's accounting records should reveal a: A.debit to Depreciation Expense for $90,000. B.debit to Manufacturing Overhead for $90,000. C.debit to Manufacturing Overhead for $72,000. D.debit to Work-in-Process Inventory for $18,000. E.credit to Accumulated Depreciation for $90,000. 2. When manufacturing overhead is applied to production, it is added to: A.the Cost of Goods Sold account. B.the Raw Materials account. C.the Work in Process account. D.the Finished Goods inventory account. E.the Manufacturing Overhead clearing account. 3.Consider the below statements regarding the entry made when raw materials are used in production and are recorded in a job cost system: i.Work in Process is credited and Finished Goods is debited. ii.Direct Material and/or Indirect Material could be debited. Work in Process is credited. iii. Direct Material and/or Indirect Material could be debited. Manufacturing Overhead is credited. iv.Direct Material and/or Indirect Material could be debited. Raw Materials is credited. v.Cost of Goods Sold is debited and Raw Materials Inventory is credited. vi.Raw Materials Inventory is credited. Work in Process and/or Factory Overhead could be debited. vii.Cost of Goods Manufactured is debited and Raw Materials Inventory is credited. How many of the above statements are true? A. 6B.4C. 3D. 2E. 1 4.Ignoring overtime, the assignment of direct labor cost to individual jobs is based on: A.an estimate of the total time spent on the job. B.actual total payroll cost divided equally among all jobs in process. C.estimated total payroll cost divided equally among all jobs in process. D.the actual time spent on each job multiplied by the wage rate. E.the estimated time spent on each job multiplied by the wage rate. 5.The Goods in Process Inventory account for the AB Corp. follows: The cost of units transferred to finished goods is: A. $97,000B. $105,900C. $88,100D. $95,200E. $92,500 Page 287 Downloaded by Burbank England ([email protected])lOMoARcPSD|20851058

6.The accounting records of Dolphin Company revealed the following information: Total current period manufacturing costs500,000 Work-in-process inventory, Jan 150,000 Work-in-process inventory, Dec. 31100,000 Finished-goods inventory, Jan 1150,000 Finished-goods inventory, Dec. 31125,000 Dolphin'scost of goods soldis: A. $500,000 B. $450,000C. $475,000 D. $425,000 E. NOTA 7.For the year just ended, Cole Corporation's manufacturing costs (raw materials used, direct labor, and manufacturing overhead) totaled $1,500,000. Beginning and ending work-in-process inventories were $60,000 and $90,000, respectively. Cole's balance sheet also revealed respective beginning and ending finished-goods inventories of $250,000 and $180,000. On the basis of this information, how much would the company report as cost of goods manufactured (CGM) and cost of goods sold (CGS)? A.CGM, $1,430,000; CGS, $1,460,000. B.CGM, $1,470,000; CGS, $1,540,000. C.CGM, $1,530,000; CGS, $1,600,000. D.CGM, $1,540,000; CGS, $1,470,000. E.CGM, $1,470,000; CGS, $1,400,000. 8.The job order cost sheets used by Garza Company revealed the following: Job No. 125 was completed during May and Jobs No. 124 and 125 were shipped to customers in May. What was the company's cost of goods sold for May and the goods in process inventory on May 31? A.$3,200; $900 B.$2,900; $1,200 C.$1,200; $2,900 D.$1,700; $1,200 E.$4,100; $0 9.Which of the following entries would record correctly the monthly salaries earned by the top management of a manufacturing company? Page 288 Downloaded by Burbank England ([email protected])lOMoARcPSD|20851058

10.Which of the following entries would record correctly the monthly salary earned by the production manager of a manufacturing company? 11.Which of the following entries would record correctly the wages earned by an employee of a manufacturing company who works in the fabrication department for time spent working on specific customer jobs?