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Study Resources (Accounting)

41) Finished goods are listed on the statement of cost of goods manufactured. 42) All expenses are listed on the income statement of a manufacturer. 43) Classify each of the following as raw materials, direct labor, or overhead: Item Raw Material Direct Labor Overhead Steel in making of cars Salary of a supervisor Wages of an employee producing desks Lease.
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24.2   Learning Objective 24-2 1) The difference between a department's gross profit and its operating expenses is known as the: A) departmental operating margin. B) departmental operating cost. C) departmental operating income. D) departmental gross profit. 2) Indirect expenses are allocated to departments based on: A) decisions of the stockholders. B) directives from the board of directors. C) some.
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Learning Objective 1-6 1) The income statement shows whether or not a business can generate enough cash to pay its liabilities. 2) The balance sheet shows whether or not a business is earning profits. 3) The statement of owner's equity informs users about how much of the earnings were kept and reinvested in.
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18) Column 1 Column 2 Column 3 Column 4 Raw materials inventory 19) Column 1 Column 2 Column 3 Column 4 Factory supplies inventory 20) Column 1 Column 2 Column 3 Column 4 Factory equipment 21) Column 1 Column 2 Column 3 Column 4 Accumulated depreciation— factory equipment 22) Column 1 Column 2 Column 3 Column 4 Accounts payable 23) Column 1 Column 2 Column 3 Column 4 Raw materials purchases 24) Column 1 Column 2 Column 3 Column 4 Cost of goods sold 25) Column.
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11) Calculate the cost of goods sold when beginning finished goods inventory equals $70,000, ending finished goods inventory $85,000, and cost of goods manufactured $600,000. A) $615,000 B) $445,000 C) $685,000 D) $585,000 12) What inventories are included in determining the cost of goods sold? A) Beginning and ending finished goods B) Beginning and ending raw materials C).
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Learning Objective 1-4 1) A business owner starts a new business and invests $6,000 of capital. This transaction results in an increase in the assets of the business. 2) For an accounting equation to balance, a transaction must affect both the sides of the equation. 3) John contributes cash in exchange for capital.
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25.2   Learning Objective 25-2 1) What is the journal entry to record issuing supplies from the storeroom? A) Debit Overhead-Applied; credit Raw Materials Inventory B) Debit Overhead-Control; credit Supplies Inventory C) Debit Supplies Inventory; credit Overhead-Applied D) Debit Overhead-Applied; credit Supplies Inventory 2) What is the journal entry to record issuing raw materials from the storeroom? A).
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Given the following accounts: [1]Expense accounts. [2]Accounts receivable [3]Finished goods inventory. [4]Work in process inventory. [5]Raw materials inventory. [6]Factory supplies inventory. [7]Overhead applied [8]Accumulated depreciation factory equipment [9]Accounts payable. [10]Payroll [11]Utilities payable [12]Sales. [13]Raw materials purchases. [14]Overhead-control. [15]Cost of goods sold. Indicate the account(s) to be debited and credited to record the following transactions. 42) Purchased raw materials on account. Debit ________ & ________ & ________ Credit ________.
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21) Sylvan Manufacturing applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $75,000 and direct labor hours would be 10,000. The applied overhead rate per direct labor hour is: A) $7.50. B) $15.00. C) $0.1333. D) none of the above. 22) If the overhead.
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48) From the following, calculate income by departments. Dept. 1Dept. 2 Net Sales$8,000$6,500 Cost of Goods Sold5,0003,200 Delivery Expense570420 Advertising Expense390310 Depreciation Expense620530 49) From the following partial data, prepare a departmental income statement showing income before tax along with net income for Mason Corporation for the month ended December 31. Net Sales-Sporting Goods$3,000 Net Sales-Shoes1,500 Cost of Goods Sold-Sporting.
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Learning Objective 1-3 1) Liabilities represent creditors' claims on the business's assets. 2) The left side of the accounting equation measures the amount that the business owes to creditors and to the owner. 3) The total of amount of assets that a business possesses, may or may not equal the total of liabilities.
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11) Martin Supply Service received $1,000 cash from a customer which was owed to the business from the previous month. Which of the following accounts would decrease as a result of this transaction? A) Cash B) Equity C) Accounts Payable D) Accounts Receivable 12) Ace Inc. had the following transactions in June: Sold goods for.
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51) The warehouse area for a wholesale club.________ 52) The cosmetic counter of a major retailer________ 53) The repair shop area of an airline.________ 54) The tax offices of a CPA firm.________ 55) The repair center of a car dealership.________ 56) The reservations call center for a hotel chain.________ .
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11) Which of the following is a liability account? A) Accounts Receivable B) Cash C) Building D) Notes Payable 12) Which of the following is an asset account? A) Wages Payable B) Notes Payable C) Unearned Revenue D) Accounts Receivable 13) A customer's promise to pay in the future for services or goods sold is called a(n): A) Accounts Receivable. B) Accounts.
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24.3   Learning Objective 24-3 1) When preparing an income statement showing departmental contribution margin: A) indirect expenses are combined with direct expenses. B) indirect departmental expenses are added to contribution margin. C) direct expenses are subtracted from contribution margin on sales. D) None of these answers are correct. 2) Compute the contribution margin for the video.
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39) From the following transactions, prepare the appropriate general journal entries for the month of April. a. Raw materials costing $60,000 were issued from the storeroom. b. Direct labor of $53,000 was charged to production. c. Indirect labor costs of $17,000 were incurred. d. Overhead was applied at the rate of 40% of direct.
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11) Factory Supplies Expense, Depreciation Expense-Factory, and Heat, Light, and Power-Factory appear on which section of the worksheet? A) Statement of cost of goods manufactured B) Balance sheet C) Income statement D) Statement of cost of goods sold. 12) A manufacturing company will have a new set of columns on the worksheet for the: A) statement.
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Learning Objective 1-2 1) As per the economic entity assumption, an organization and its owner should be seen as the same entity. 2) The guidelines for accounting information are called Generally Accepted Accounting Principles (GAAP). 3) IFRS is the main U.S. accounting rule book and is currently created and governed by the FASB. 4).
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31) Finished goods inventory includes the total costs of manufacturing a product. 32) A cost of goods manufactured statement should be prepared before the income statement has been prepared. 33) The balance sheet contains all three manufacturing inventories. 34) The steps of the accounting cycle for a manufacturing company are different from those.
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21) Why would it be advisable for a company to keep separate accounting records for various departments? 22) Prepare an income statement showing departmental contribution margin based on the following: Dept. XDept. YRent Expense Space (square feet)17,50035,000 Net Sales$60,000$ 40,000 Cost of Goods Sold18,00016,000 Rent Expense (allocated based on square feet)$2,700 23) Hawkeye Golf is considering dropping.
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  Learning Objective 2-1 1) A chart of accounts is a detailed record of the changes in a particular asset, liability, or owner's equity. 2) A chart of accounts is a list of all of a company's accounts with their account numbers. 3) Liabilities are economic resources that are expected to benefit the business.
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11) Different users of financial statements focus on the different parts of the financial statements for the information they need. 12) Any person or business to whom a business owes money is called the business's creditor. 13) Managerial accounting provides information to: A) internal decision makers. B) outside investors and lenders. C) auditors. D) taxing authorities. 14).
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25.3   Learning Objective 25-3 1) The purchase of direct materials was recorded as the purchase of office supplies. This error will cause: A) the cost of goods manufactured to be overstated. B) the cost of goods sold to be overstated. C) the net income to be overstated. D) None of these are correct. 2) The direct.
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11) Which of the following is the correct accounting equation? A) Assets + Liabilities = Equity B) Assets = Liabilities + Equity C) Assets + Revenues = Equity D) Assets + Revenues = Liabilities + Expenses 12) Scott's Camera Shop started the year with total assets of $80,000 and total liabilities of $40,000. During the.
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31) Departmental accounting requires: A) measuring departmental gross profit. B) allocating direct costs to departments. C) allocating indirect costs to departments. D) None of these answers is correct. 32) Which of the following expenses is the most difficult to allocate to departments? A) Cost of goods sold B) Use of general supplies by everyone C) Salaries and wages D).
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51) Electricity for the stove in a restaurant.________ 52) Paint for the restaurant dining room.________ 53) Rent paid for the building.________ 54) Wages paid to the restaurant wait staff.________ 55) Electricity for the general lighting in a store._______ 56) Paint sold by the hobby department.________ 57) General employee insurance.________ 58) Rent paid for the freezers in the.
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11) The Overhead-Control account is used for the: A) application of overhead to production and it has a debit balance. B) accumulation of all actual overhead costs and it has a credit balance. C) application of overhead to production and it has a credit balance. D) accumulation of all actual overhead costs and it.
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11) If the cosmetic department in the store measures 10,000 square feet and the total building cost is $30,000 for a 40,000 square foot building, the cost that would be allocated to the cosmetic department would be: A) $30,000. B) $10,000. C) $22,500. D) $7,500. 12) If the music department in a department store is.
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31) Work-in-Process is credited and Payroll is debited when direct labor is charged to production. 32) Finished Goods is debited when products are sold and credited when the products are transferred from Work-in-Process. 33) Cost of Goods Sold is debited after items have been sold from the finished goods inventory. 34) Overhead may.
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46) Calculate the (a) cost of goods manufactured from the following information. Beginning Raw Materials Inventory:$63,000 Ending Raw Materials Inventory:58,000 Overhead:36,000 Beginning Finished Goods Inventory:27,000 Ending Finished Goods Inventory:32,000 Direct Labor:42,000 Raw Materials Purchased:73,000 Beginning Work-in-Process Inventory:12,000 Ending Work-in-Process Inventory:15,000 47) Seascape Interiors produces artist supplies. Listed below are the costs of production and inventory. Direct Labor$60,000 Raw Materials Inventory, Aug. 125,000 Raw.
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  25.1   Learning Objective 25-1 1) Nails, depreciation, and foreman salaries are examples of: A) raw materials. B) direct labor. C) manufacturing overhead. D) none of the above. 2) Lumber used in construction of a building is part of: A) raw material costs. B) labor costs. C) manufacturing overhead. D) None of these answers are correct. 3) Direct labor includes the wages.
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11) Sales minus cost of goods sold yields: A) operating expenses. B) gross profit. C) income before taxes. D) net income. 12) An example of a cost center is: A) a Holiday Inn. B) the restaurant in a motel. C) the administrative department in a motel. D) the catering department in a motel. 13) Gross profit by department appears on.
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24.1   Learning Objective 24-1 1) A profit center is a unit in which the manager: A) has the responsibility for controlling costs, but not for directly generating revenue. B) is not responsible for controlling costs, but is responsible for generating revenue. C) is responsible for controlling costs and generating revenue. D) None of these answers.
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  Learning Objective 1-1 1) Accounting is the information system that measures business activities, processes the information into reports, and communicates the results to decision makers. 2) Accounting is referred to as the language of business because it is the method of communicating business information to stakeholders. 3) Managerial accounting focuses on information for.
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21) Which of the following is a characteristic of a corporation? A) A corporation is owned by stockholders. B) Lenders of a corporation do not have the right to claim the corporation's assets to satisfy their obligations. C) All shares of a corporation must be held by a single individual. D) Each stockholder has.
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Learning Objective 1-5 1) The balance sheet of a business summarizes an entity's revenues and expenses. 2) By looking at a statement of owner's equity, the effect of withdrawals on the ending balance in owner's equity can be evaluated. 3) Financial statements are business documents that are used to communicate information needed to.
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11) When a department showing a loss is eliminated, other departments will always achieve a greater contribution margin. 12) Direct expenses and indirect expenses are separated in determining contribution margin. 13) Direct expenses are assigned to departments based on the actual expenses incurred. 14) Eliminating one department may increase the sales of another.
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