Test 1 . . . Chapters 1, 2, 3, and 4
CHP 1 On the Schedule of Cost of Goods Manufactured, the final Cost of Goods
Manufactured figure represents:
the cost charged to Work in Process during the period.
the cost transferred from Finished Goods to Cost of Goods Sold during the
the cost placed into production during the period.
the cost of goods completed during the current period.
the amount subtracted from Sales to arrive at Gross Profit.
CHP 4 What Was All That One in a Million Talk, LLC is a manufacturer of cross
country mopeds. During the month of January, direct labor and direct materials
totaled $39,000; direct labor costs were twice as much as direct material costs.
Applied manufacturing overhead was 70% of direct labor costs. The balance in
Work in Process at the beginning of the month was $64,000; the balance in Work
in Process at the end of the month was $55,000. Which of the following journal
entries would appear in the accounting records of One in a Million based on the
Debit Work in Process $26,000; Credit Raw Materials Inventory $26,000.
Debit Work in Process $26,000; Credit Wages Payable $26,000.
Debit Manufacturing Overhead $18,200; Credit Work in Process $18,200.
Debit Finished Goods $48,200; Credit Work in Process $48,200.
Debit Finished Goods $57,200; Credit Work in Process $57,200.
CHP 4 The following information was extracted from the accounting records of
Pickin’ and Grinnin’, LLC, a manufacturer of custom guitars, who uses a normal
Raw materials used
Building depreciation (70% of building devoted to production, 30%
of building devoted to selling and administrative)
Other factory costs (includes $15,000 of indirect materials
requisitioned from Raw Materials Inventory)
In the journal entry to record
actual Manufacturing Overhead costs
period, the total amount debited to Manufacturing Overhead (MOH) would be:
02e6b94be2cef90342b35b39542f27346a011248.doctest 1 practice
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