AC202 - chapters 12,14,15

True/False? The journal entry for cost of goods manufactured includes only the costs of units that are finished.

True

True/False? A change in deferred taxes is considered to be an investing activity on the statement of cash flows.

False

True/False? In the statement of cash flows, increases in a company's capital stock accounts are treated as a use rather than a source of cash.

False

True/False? Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred in completing a job.

False

True/False? When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, a decrease in common stock would be added to net income.

False

All of the following are examples of product costs except: a) depreciation on the company's retail outlets b) salary of the plant manager c) insurance on the factory equipment d) rental costs of the factory facility

a) depreciation on the company's retail outlets

The work in process account of a manufacturing firm shows a balance of $3,000 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $500 and $300 for materials used, and charges of $400 and $600 for direct labor used. From this information , it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs , of a) 83% b) 120% c) 40% d) 250%

b) 120%

Stark Manufacturing developed the following data: Beginning work in process 45,000 Direct Materials used 35,000 Actual Overhead 55,000 Overhead applied 40,000 Costs of goods manufactured 60,000 Ending work in process 100,000 Stark Manufacturing total manufacturing costs for the period is a) 120,000 b) 150,000 c) 90,000 d) cannot be determined

b) 150,000

Marx Manufacturing Company reported the following year-end information: Beginning work in process inventory 180,000 Beginning raw materials inventory 50,000 Ending work in process inventory 150,000 Ending raw materials inventory 80,000 Raw materials purchased 160,000 Direct labor 150,000 Manufacturing Overhead 100,000 Marx Manufacturing Company's cost of goods manufactured for the year is: a) 380,000 b) 410,000 c) 350,000 d) 440,000

b) 410,000

If a company uses a predetermined overhead rate to apply overhead cost to production, a debit balance in the Manufacturing Overhead account at the end of any period indicates that: a) more overhead cost has been applied to production than has been incurred b)more overhead cost has been incurred during the period than has been applied to production c) the amount of overhead cost applied is greater than the estimated overhead cost for the period d) the amount of overhead cost applied is less than the estimated overhead cost for the period

b) more overhead cost has been incurred during the period than has been applied to production

Insurance of shares of company stock 40,000 dividends paid to company shareholders 3,000 Dividends from investments in other shares 5,000 Interest paid on the company's own bonds 22,000 Repayment principal on the company bonds 100,000 Proceeds from sale company's used equi 29,000 Purchase of land 80,000 Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows would be: a) -130,000 b) 279,000 c) -63,000 d) 85,000

c) -63,000

How do you get Total cost of goods available? a) subtract CoGs from net sales b) subtract operating expenses from Gross Profit c)Add beginning finished goods and costs of goods manufactured d) Add beginning finished goods and ending finished goods

c) Add beginning finished goods and costs of goods manufactured

In a job order costing system , the application of manufacturing overhead would be recorded as a debit to: a) Raw materials inventory b) Finished Goods Inventory c) Work in process inventory d) Costs of Goods Sold

c) Work in process inventory

The statement of cash flows: a) serves as a replacement for the income statement and balance sheet b) shows the sources and uses of cash at one point in time c) shows the sources and uses of cash for one period of time d) is both A and B

c) shows the sources and uses of cash for one period of time

What journal entry is made in a job order costing system when 8000 of materials are requisitioned for general factory use instead of use in a particular job? a) work in process 8000 manufacturing 8000 b) work in process 8000 raw materials 8000 c) Manufacturing Overhead 8000 Work in process 8000 d) Manufacturing Overhead 8000 Raw Materials 8000

d) Manufacturing Overhead 8000 Raw Materials 8000

In a job order system, the cost of a completed but unsold job is: a) closed to Cost of Goods Sold b) part of the Work in Process inventory balance c) adjusted to exclude any applied overhead d) part of the Finished Goods Inventory balance

d) part of the Finished Goods Inventory balance