Multiple Choice Questions
( 30 marks, 2 marks each)
** Please put the correct answer on the front page of the exam paper
A company that adopts a just-in-time production system would attempt to reduce
raw materials inventory.
b) raw materials inventory and work-in-process inventory.
raw materials inventory, work-in-process inventory and finished goods
d) raw materials inventory and finished goods inventory.
Barbara's Towels sells three items: bath towels, hand towels, and washcloths in a
3:2:1 mix. Each bath towel sells for $4.00 and costs $1.60; each hand towel sells
for $2.80 and costs $.70; and each washcloth sells for $1.40 and costs $.45. The
shop's annual fixed expenses are $48,165, and tax rate is 30%.
How many bath
towels will be sold for the shop to make $35,000 in after-tax profits? (Round
“basket” ANS to nearest unit.)
The records of Chan Co. revealed the data below for 2004:
Work in Process
Cost of Goods Sold
Assume that Chan has under applied overhead of $37,200 for 2004 and that this
amount is material.
What journal entry is needed to close the Overhead account?
(Round decimals to nearest whole percent.)
Debit Work in Process $8,556, Finished Goods $13,392, Cost of Goods
Sold $15,252, and credit Overhead $37,200.
b) Debit Overhead $37,200, and credit Work in Process $8,556, Finished
Goods $13,392, Cost of Goods Sold $15,252.
Debit Work in Process $37,200, and credit Overhead $37,200.
d) Debit Cost of Goods Sold $37,200, and credit Overhead $37,200.