Key_Multiple Choice Quiz_Chapter7

Key_Multiple Choice Quiz_Chapter7 - MultipleChoiceQuiz...

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Multiple Choice Quiz (See related pages) Your Results: The correct answer for each question is indicated by a  A control account: A) is a temporary account. B) is supported by a set of subsidiary ledger accounts. C) summarizes revenue and expense accounts. D) is closed at the end of the period to cost of goods sold. E) none of the above. Feedback: A control account is a real (not temporary) account that summarizes a  set of ledger accounts. A company that manufactures goods usually has how many inventory accounts? A) one B) two C) three D) four E) none of the above Feedback: A manufacturing company will normally show three inventory accounts  on its balance sheet: direct materials, work-in-process, and finished goods. Heron Company started March with $35,000 in direct materials inventory. During the month  $145,000 of materials were purchased and at the end of March $22,000 was in ending inventory.  The amount of direct material used in production in March was: A) $158,000 B) $167,000 C) $180,000 D) $193,000 E) None of the above Feedback:  Beginning inventory + purchases – ending inventory = amount used.  $35,000 + $145,000 - $22,000 = $158,000. 1/8
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Shapes, Inc. had a beginning work-in-process inventory of $17,000. During January $73,000 of  direct materials were requisitioned for production. Also, $45,000 of direct labor and $62,000 of  manufacturing overhead was incurred. If Shapes completed and transferred $167,000 to finished  goods, what was the ending work-in-process amount? A) $27,000 B) $30,000 C) $42,000 D) $54,000 E) None of the above Feedback:  Beginning work-in-process + direct materials added this period + direct labor used  this period + manufacturing overhead incurred this period –ending  inventory = amount transferred out. Rearranging the equation: BWIP + DM + DL  +OH – Transferred Out = EWIP. $17,000 + $73,000 + $45,000 + $62,000 -  $167,000 = $30,000. Use the following information to answer questions 5 – 7  Mostly Done experienced the following in January: The amount of direct materials used in January was: A) $142,000 B) $151,000 C) $159,000 D) $168,000 E) None of the above Feedback: Beginning inventory + purchases – ending inventory = indirect material  used + direct material used. $23,000 + $145,000 - $17,000 = $151,000 material used.  $151,000 material used - $9,000 indirect materials used = $142,000 direct materials  used.
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This note was uploaded on 06/14/2010 for the course ACCOUNTING 123456 taught by Professor Vananh during the Spring '10 term at Vaasan ammattikorkeakoulu.

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Key_Multiple Choice Quiz_Chapter7 - MultipleChoiceQuiz...

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