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65 the payment of wages to factory employees who work directly on the goods being ma 4298451

 

 

65. The payment of wages to factory employees who work directly on the goods being manufactured is recorded by an entry crediting: 
A. Wages Expense.
B. Direct Labor.
C. Work in Process Inventory.
D. Cash.

 

 

66. Since production employees work directly on the goods being manufactured, the related labor costs are recorded by debiting: 
A. Wages Expense.
B. Direct Labor.
C. Work in Process Inventory.
D. Manufacturing Overhead.

 

 

67. It is the first year of operations at Johnny's Subs and the cost of all work in process during the year is $830,000. Assuming the cost of finished goods manufactured is $860,000, what is the value of the ending Work in Process inventory? 
A. $0.
B. $30,000.
C. Some other amount.
D. This is an impossible situation.

 

 

68. If the end of the fiscal year is not a payroll date, the Direct Labor account normally has: 
A. A debit balance, representing prepaid labor costs.
B. A credit balance, representing accrued wages payable.
C. Either a debit or a credit balance, depending upon whether the end of the fiscal year falls before or after the end of the pay period.
D. A zero balance, because the Direct Labor account is closed along with the other expense accounts.

 

 

69. Manufacturing overhead is best described as: 
A. All manufacturing costs other than direct materials and direct labor.
B. All period costs associated with manufacturing operations.
C. Indirect materials and indirect labor.
D. All operating expenses other than selling expenses and general and administrative expenses.

 

 

70. Which of the following costs would not be considered part of the manufacturing overhead of a furniture manufacturer? 
A. The cost of compliance with federal factory safety regulations.
B. Depreciation expense on factory equipment.
C. The cost of grease used to lubricate factory equipment.
D. The cost of wood used in furniture construction.

 

 

71. Which of the following costs would not be considered part of the manufacturing overhead of a chemical plant? 
A. The costs of disposing of toxic waste materials.
B. Salaries of factory medical personnel.
C. Salaries of employees who operate distilling equipment used in the production process.
D. The cost of complying with federal safety regulations concerning plant operations.

 

 

72. Which group of stakeholders is management accounting designed to satisfy? 
A. Management.
B. Creditors.
C. Investors.
D. Governmental agencies.

 

 

73. In the year-end financial statements, the Manufacturing Overhead account should have: 
A. A debit balance, representing overhead on hand and available for use.
B. A credit balance, representing accumulated depreciation and amounts owed to suppliers of overhead items.
C. Either a debit or a credit balance, depending upon whether the overhead application rate used throughout the year was higher or lower than 100%.
D. A zero balance, since all overhead costs incurred during the period should have been assigned to the production of the period.

 

 

74. Since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing units of product, these costs are debited to: 
A. The Direct Materials Inventory, Direct Labor, and Manufacturing Overhead accounts.
B. Expense accounts.
C. The Work in Process Inventory account.
D. The Cost of Goods Sold account.

 

 

 

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