Chapter 17 - Answers 2
What type of account is Work-In-Process Inventory? A. Asset account B. Equity- revenue account C. Lability account D. Equity- expense account
A. Asset account
Apex Company has an underallocated amount of $2,000 after balancing the Manufacturing Overhead account. The debit entry to close out the underallocated amount would be ______. A. Cost of Goods Sold B. Finished Goods C. Sales Revenue D. Manufacturing Overhead
A. Cost of Goods Sold
Which of the following companies is LEAST likely to use job order costing? A. Soft drink bottler B. Lawyer's office C. Automotive repair shop D.House builder
A. Soft drink bottler
Cost of Goods Sold is considered what type of account? A. Lability account B. Asset account C. Equity- expense account D. Equity- revenue account
C. Equity- expense account
For a manufacturer, when indirect labor costs are recorded, the debit entry is to ________. A. Wages Payable B. Direct Labor C. Manufacturing Overhead D. Work-In Process Inventory
C. Manufacturing Overhead
Which of the following accounts should always have a zero balance at the end of each accounting period? A. Finished Goods B. Raw Materials Inventory C. Manufacturing Overhead D. Wok-in-Process Inventory
C. Manufacturing Overhead
Which of the following businesses would be MOST likely to use Process Costing? A. Interior decorator B.Accounting firm C. Potato chip manufacturer D. Automotive repair shop
C. Potato chip manufacturer
For a manufacturer, when direct labor costs are recorded, the debit entry is to __________. A. Wages Payable B. Direct Labor C. Work-In Process Inventory D. Manufacturing Overhead
C. Work-In Process Inventory
Lila Company has an overallocated amount of $2,000 after balancing the Manufacturing Overhead account. The debit entry to close out the overallocated amount would be ______. A. Cost of Goods Sold B. Finished Goods C. Sales Revenue D. Manufacturing Overhead
D. Manufacturing Overhead
When direct materials are used in production, costs are assigned by debiting Work-In-Process Inventory and crediting __________. A. Manufacturing Overhead B.Direct Materials C. Work-In_process Inventory D. Raw Materials Inventory
D. Raw Materials Inventory
The journal entry to allocate manufacturing overhead costs to production would include a debit to ____. A. Finished Goods B. Raw Materials Inventory C. Manufacturing Overhead D. Wok-in-Process Inventory
D. Wok-in-Process Inventory The credit would be to Manufacturing Overhead.