Acc206 week 3 quiz solution guide 1. in a manufacturing operation,

1. In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense.

True

False 

2. Which of the following describes the cost of goods manufactured?

The cost of the goods that were sold during the period

The total cost of all goods that were completed, or partially completed during the period

The cost of those goods which were completed during the period

The total costs in inventory at the end of the period

3. The following information pertains to Bright Toy Company’s operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.

Purchases $ 126,000

Selling and Administrative Expenses 90,000

Merchandise inventory, 1/1/2012 14,000

Merchandise inventory, 12/31/2012 10,000

Sales Revenue 250,000

What is the gross profit for 2012?

$120,000 

$130,000

$140,000

$136,000

None of these is correct

4. All manufacturing overhead costs incurred are accumulated as debits to a general ledger account titled Manufacturing overhead.

True 

False

5. Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:

Total manufacturing overhead estimated at the beginning of the year: $140,000

Total direct labor costs estimated at the beginning of the year: $350,000

Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours

Actual manufacturing overhead costs for the year: $159,000

Actual direct labor costs for the year: $362,000

Actual direct labor hours for the year: 12,400 direct labor hours

Based on the data above, how much manufacturing overhead was allocated to production? (Please round to nearest whole dollar.)

$825,360

$905,000

$144,800 

$159,280

None of these is correct

6. When materials are requisitioned for a job, the materials inventory account is debited. (Points : 1)

True 

False  

7. The following information pertains to Bright Toy Company’s operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.

Purchases $ 126,000

Selling and Administrative Expenses 90,000

Merchandise inventory, 1/1/2012 14,000

Merchandise inventory, 12/31/2012 10,000

Sales Revenue 250,000

What is the cost of goods sold for 2012?

$104,000

$124,000

$130,000 

$140,000

None of these is correct

8. Process costing is used by companies that produce large numbers of identical units in a continuous fashion.

True 

False

9. Selected data for Young Company for 2012 is presented below:

Direct labor incurred $30,000

Indirect labor incurred 21,000

Factory depreciation 5,000

Factory utilities 7,000

Indirect materials used 2,000

Direct materials used 12,000

Property taxes on factory building 3,000

Sales commissions 8,000

What is the manufacturing overhead?

$47,000

$50,000

$38,000 

$46,000

None of these is correct

10. Indirect materials and indirect labor are tracked to individual job costing records and recorded in the Work in process account.

True 

False