question archive 1) On March 1, Metevier Corporation had $45,000 of raw materials on hand
1) On March 1, Metevier Corporation had $45,000 of raw materials on hand
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1) On March 1, Metevier Corporation had $45,000 of raw materials on hand. During the month, the company purchased an additional $50,000 of raw materials. During March, $58,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $5,000. The journal entry to record the requisition from the storeroom would include a: *
Debit to Work in Process of $58,000
Debit to Work in Process of $53,000
Debit to Raw Materials of $58,000
None of the above
2. During February, Irving Corporation incurred $78,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $65,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: *
Debit to Manufacturing Overhead of $78,000
Credit to Manufacturing Overhead of $78,000
Credit to Work in Process of $65,000
None of the above
3. When the company purchases raw materials for $50,000 on account, the entry should include: *
A debit to Raw Material Inventory $50,000 and a credit to Cash $50,000
A debit to Accounts payable $50,000 and a credit to Raw Materials Inventory $50,000
A debit to Raw Materials Inventory $50,000 and a credit to Accounts Payable $50,000
None of the above
4. Raw materials requisitioned by production for job No.110 consist of Direct Materials $15,000 and Indirect Materials $5,000. The entry to record this transaction should include: *
A debit to Work in Process $10,000 and a credit to Raw Material Inventory $10,000
A debit to Work in Process $15,000, a debit to Manufacturing Overhead $5,000 and a credit to Raw Material Inventory $20,000
A debit to Work in Process $15,000, a credit to Manufacturing Overhead $5,000 and a credit to Raw Material Inventory $20,000
None of the above
5. To manufacture job No. 210, ABC company incurred $150,000 of factory labor, of which $10,000 were employer payroll taxes. The entry to record this transaction would include: *
A debit to Factory Labor $150,000, a credit to Employer Payroll Taxes Payable $10,000 and a credit to Factory Wages Payable $140,000
A debit to Factory Labor $160,000, a credit to Employer Payroll Taxes Payable $10,000 and a credit to Factory Wages Payable $150,000
A debit to Factory Labor $140,000, a debit to Employer Payroll Taxes Payable $10,000 and a credit to Factory Wages payable $150,000
None of the above
6. Time tickets indicated 15,000 labor hours in the production of Job .320, out of which 10,000 were direct labor hours. The company pays $13 per each labor hour. The entry to record this transaction is: *
A debit to Work in Process Inventory $195,000 and a credit to Factory Labor $195,000
A debit to Work in Process Inventory $130,000 and a credit to Factory Labor $130,000
A debit to Work in Process Inventory $130,000, a debit to manufacturing overhead $65,000, and a credit to Factory Labor $195,000
None of the above
7. The journal entry to record the completion of Job No.120 at a cost of $50,000 would include: *
A debit to Work in Process Inventory $50,000 and a credit to Finished Goods Inventory $50,000
A credit to Work in Process Inventory $50,000 and a debit to Finished Goods Inventory $50,000
A debit to Cost of Goods Sold $50,000 and a credit to Finished Goods Inventory $50,000
None of the above
8. Goods costing $75,000 were sold for $90,000 on account. The entry to record this transaction would include: *
A debit to Accounts Receivable $75,000 and a credit to Sales Revenue $75,000
A debit to Cost of Goods Sold $75,000 and a credit to Finished Goods Inventory $75,000
A debit to Cost of Goods Sold $90,000 and a credit to Finished Goods Inventory $90,000
None of the above
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Answers:
| 1.) | Account Titles | Debit $ | Credit $ |
| Work in process | 53,000 | ||
| Manufacturing Overhead | 5,000 | ||
| Raw Material Inventory | 58,000 | ||
| ( To record requisition from the storeroom ) | |||
| Correct answer is option 2 . | |||
| 2.) | Account Titles | Debit $ | Credit $ |
| Manufacturing Overhead | 78,000 | ||
| Accounts payable / Cash | 58,000 | ||
| ( To record incurrance of actual manufacturing Overhead cost ) | |||
| Correct answer is option 1. | |||
| 3.) | Account Titles | Debit $ | Credit $ |
| Raw Material Inventory | 50,000 | ||
| Accounts payable | 58,000 | ||
| ( To record purchase of raw material on account ) | |||
| Correct answer is option 3 . | |||
| 4.) | Account Titles | Debit $ | Credit $ |
| Work in process | 15,000 | ||
| Manufacturing Overhead | 5,000 | ||
| Raw Material Inventory | 20,000 | ||
| ( To record raw material requisition ) | |||
| Correct answer is option 3 . | |||
| 5.) | Account Titles | Debit $ | Credit $ |
| Factory Labor | 150,000 | ||
| Employer payroll taxes Payable | 10,000 | ||
| Factory Wages payable | 140,000 | ||
| ( To record factory labor ) | |||
| Correct answer is option 1 . | |||
| 6.) | Account Titles | Debit $ | Credit $ |
| Work in process Inventory ( 10,000 x 13 ) | 130,000 | ||
| Manufacturing Overhead ( 5,000 x 13 ) | 65,000 | ||
| Factory Labor | 195,000 | ||
| ( To record time ticket ) | |||
| Correct answer is option 3 . | |||
| 7.) | Account Titles | Debit $ | Credit $ |
| Finished Goods Inventory | 50,000 | ||
| Work in process Inventory | 50,000 | ||
| ( To record Completion of Job ) | |||
| Correct answer is option 2 . | |||
| 8.) | Account Titles | Debit $ | Credit $ |
| Cost of goods sold | 75,000 | ||
| Finished Goods Inventory | 75,000 | ||
| ( To record cost of goods sold ) | |||
| Correct answer is option 2 . |
