What is the journal entry to record issuing supplies from the storeroom?

1. 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

2. Sensitivity analysis is part of __________.

A. income statement analysis

B. Gross profit analysis

C. cost analysis

D. cost-volume-profit analysis

3. ABC Restaurant’s revenue budget reflects the following information for February:

Food sales$260,000

Beverage and liquor sales$140,000

Total sales$300,000

ABC expects revenue to increase by 5% during both March and April. What is the budgeted amount of food sales revenue for April?

A. $286,650

B. $272,650

C. $288,250

D. $292,350

4. 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.

A. $615,000

B. $445,000

C. $685,000

D. $585,000

5. An element of sensitivity analysis includes __________.

A. unidimensional changes

B. a sole focus on profit

C. simultaneous changes

D. a financial accounting approach

6. ABC Restaurant’s revenue budget reflects the following information for February:

Food sales:$260,000

Beverage and liquor sales:$140,000

Total sales$300,000

ABC expects revenue to increase by 8% during both March and April. What is the budgeted amount of total sales revenue for April?

A. $350,000

B. $345,580

C. $353,620

D. $349,920

7. What is the journal entry to record issuing raw materials from the storeroom?

A. debit Raw Materials Inventory; credit Work-in-Process

B. debit Overhead-Control; credit Work-in-Process

C. debit Work-in-Process; credit Overhead-Control

D. debit Work-in-Process; credit Raw Materials Inventory

8. A budget enables managers to __________.

A. focus solely on production

B. adopt lax standards

C. abrogate responsibility for financial goals

D. achieve company objectives

9. 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

10. 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

11. 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

12. Which of the following is part of a firm’s master budget?

A. pro forma budget

B. inventory purchases budget

C. operating budget

D. schedule of cash receipts budget

13. In a manufacturing company, the purchase of materials on account should be recorded as follows __________.

A.

Raw Material Inventory

Accounts Payable

B.

Work-in-Process Inventory

Accounts Payable

C.

Finished Goods Inventory

Accounts Payable

D.

Accounts Payable

Raw Materials Inventory

14. The budget that is developed first when preparing the master budget is the __________ budget.

A. cash receipts

B. inventory purchases

C. sales

D. administrative expense

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. Journal entries crediting Payroll and debiting Work-in-Process Inventory are made for __________.

A. administrative salaries

B. hourly manufacturing labor

C. foremen’s salaries

D. raw materials

17. Direct labor includes the wages of __________.

A. an hourly worker producing the product

B. the shop foreman

C. maintenance workers

D. administrators

18. 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

19. 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

20. Raw material inventory appears on the __________.

A. balance sheet

B. income statement

C. cost of goods manufactured statement

D. both A and C