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Exam 26: Accounting for Manufacturing Activities

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Question 31

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The following information appears on the Statement of Cost of Goods Manufactured for the Poster Company at the end of the year. $\begin{array}{lr}\text { Raw Materials Used } & \$ 70,000 \\\text { Direct Labor } & 90,000 \\\text { Cost of Goods Manufactured } & 200,000 \\\text { Work in Process Inventory, January 1 } & 30,000 \\\text { Work in Process Inventory, December 31 } & 20,000\end{array}$ Manufacturing Overhead for the year was:

A) $60,000.
B) $50,000.
C) $40,000.
D) $30,000.

E) All of the above
F) A) and B)

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Question 32

Multiple Choice

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The cost of goods manufactured for a fiscal period is reported on:

A) both the income statement and the balance sheet.
B) both the statement of the cost of goods manufactured and the balance sheet.
C) both the statement of cost of goods manufactured and the income statement.
D) the statement of cost of goods manufactured only.

E) A) and D)
F) B) and C)

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Question 33

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The beginning inventory of raw materials is shown in the Income Statement Credit column and the Balance Sheet Debit column of a worksheet for a manufacturing business.

The ending inventory of raw materials is shown on the worksheet of a manufacturing business in the Cost of Goods Manufactured ----------column.

Reversing entries for a manufacturing business are:

The cost of labor that is not clearly associated with specific units of product is called:

Direct Labor and Indirect Labor are recorded, respectively, to:

Other than the adjusting entries that are made to Manufacturing Summary and to Income Summary for inventory, there are several adjustments that are normally made. List at least three and discuss why they are made and what accounts are affected.

Total manufacturing cost is the sum of beginning work in process, direct materials used, direct labor incurred and manufacturing overhead.

On a worksheet for a manufacturing firm, the beginning balance of the Finished Goods Inventory account is:

The balance of the Manufacturing Summary account is closed into the Income Summary account.

The beginning and ending----------- inventories appear in the Cost of Goods Sold section of the income statement of a manufacturing business.

Fill in the missing line items on the Income Statement given. Include correct indentations, underlines, dates, and capitalization when needed. Bortz Manufacturing Income Statement Year Ended June 31, 2019

The adjusting entry to close out the beginning work in process inventory includes a debit to Income Summary and a credit to Work in Process Inventory.

Benefits of maintaining inventory records on a perpetual basis include all of the following except:

Use the following information for the questions. The Balance Sheet headings and the accounts and their balances for Exemplar Manufacturing are listed in alphabetical order. Exemplar Manufacturing has a fiscal year end of June 30, 2019. -Using the information given, prepare the Balance Sheet for Exemplar Manufacturing. Include correct indentations, underlines, dates, and capitalization where needed.

If there are no errors, the amount needed to balance the Cost of Goods Manufactured columns of a worksheet will also be the amount required to balance the Balance Sheet columns.

The Cost of Goods Manufactured represents the cost of completed units that are transferred into Finished Goods and made available for sale.

Manufacturing-related costs that cannot be cost-effectively traced to a product are considered manufacturing overhead.

The accounts and the Adjusted Trial Balance section of Spencer Manufacturing's worksheet are given below. ADJUSTED TRIAL BALANCE Instructions: (1)Enter the account names in the Account Name column and the adjusted trial balance in the Adjusted Trial Balance columns of a 12-column manufacturing worksheet. Or use a 10-column worksheet and use the last four columns, changing the column headings as needed. (2)Extend the balances to the appropriate columns and complete the worksheet for the year ended December 31, 2019. (3)Record the closing entries for all revenue and expense accounts and the Manufacturing Summary account on page 9 of a general journal. Omit descriptions.