Which of the following is an approach to sensitivity analysis?
A. contribution
B. distribution
C. margin
D. profit
Question 2 of 20
ABC Restaurant’s revenue budget reflects the following information for February:
Food sales
$260,000
Beverage and liquor sales
$140,000
Total sales
$300,000
ABC expects revenue to increase by 5% during both March and April. What is the budgeted amount of beverage and liquor sales revenue for March?
A. $145,000
B. $154,350
C. $147,000
D. $150,000
Question 3 of 20
The entry for indirect materials (such as glue, etc.. requisitioned for use in production is __________.
A.
Raw Materials Inventory
Work-in-Process Inventory
B.
Work-in-Process Inventory
Accounts Payable
C.
Work-in-Process Inventory
Raw Materials Inventory
D. None of the above
Question 4 of 20
If direct labor for the month is $80,000 and overhead is applied based on 75% of direct labor dollars, what is the entry to apply overhead?
A. debit Work-in-Process Inventory $80,000; credit Payroll $80,000
B. debit Overhead-Applied $60,000; credit Work-in-Process Inventory $60,000
C. debit Work-in-Process Inventory $60,000; credit Overhead-Applied $60,000
D. debit Work-in-Process Inventory $80,000; credit Overhead-Applied $80,000
Question 5 of 20
An element of sensitivity analysis includes __________.
A. unidimensional changes
B. a sole focus on profit
C. simultaneous changes
D. a financial accounting approach
Question 6 of 20
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
Question 7 of 20
If direct labor for the month is $40,000, overhead is applied based on direct labor, annual overhead is $600,000, and annual direct labor is $1,000,000, what is the entry to charge direct labor to production?
A. debit Work-in-Process Inventory $40,000; credit Payroll $40,000
B. debit Overhead-Applied $40,000; credit Work-in-Process Inventory $40,000
C. debit Work-in-Process Inventory $24,000; credit Overhead-Applied $24,000
D. debit Work-in-Process Inventory $66,000; credit Overhead-Applied $66,000
Question 8 of 20
What is the journal entry to record the direct labor summarized on the labor distribution report?
A. debit Finished Goods; credit Payroll
B. debit Work-in-Process; credit Payroll
C. debit Payroll; credit Direct Labor
D. debit Payroll; credit Cash
Question 9 of 20
Raw material inventory appears on the __________.
A. balance sheet
B. income statement
C. cost of goods manufactured statement
D. both A and C
Question 10 of 20
During the week ending on November 30, total factory payroll incurred was $6,000. Of this total, 80% was for direct labor. The entry to record the payroll distribution would include __________.
A. debit Work-in-Process Inventory $4,800 and Overhead-Control $1,200
B. debit Work-in-Process Inventory $6,000
C. debit Work-in-Process Inventory $4,800 and Overhead-Applied $1,200
D. debit Work-in-Process Inventory $4,800 and Indirect Labor Expense $1,200
Question 11 of 20
Manufacturing overhead includes all manufacturing costs __________.
A. including raw materials
B. including overhead
C. excluding raw materials and direct labor
D. none of the above
Question 12 of 20
Candyland completed the manufacturing process. The entry to transfer the product to finished goods is __________.
A.
Raw Materials Inventory
Finished Goods Inventory
B.
Finished Goods Inventory
Cost of Goods Sold
C.
Finished Goods Inventory
Work-in-Process Inventory
D.
Finished Goods Inventory
Raw Materials Inventory
Question 13 of 20
Which of the following is part of a firm’s master budget?
A. pro forma budget
B. inventory purchases budget
C. operating budget
D. schedule of cash receipts budget
Question 14 of 20
The entry to record rent expense $9,000, supervision expense $19,000, and depreciation expense $7,000 to overhead is __________.
A. debit Overhead-Applied $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
B. debit Overhead-Control $35,000; credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense $7,000
C. debit Overhead-Applied $35,000; credit Overhead-Control $35,000
D. none of the above
The B may be the answer but credit should be for cash and accumulated depreciation not the expenses
Question 15 of 20
ABC Restaurant’s revenue budget reflects the following information for February:
Food sales:
$260,000
Beverage and liquor sales:
$140,000
Total sales:
$300,000
ABC expects revenue to increase by 8% during both March and April. What is the budgeted amount of total sales revenue for April?
A. $350,000
B. $345,580
C. $353,620
D. $349,920
Question 16 of 20
The budget that is developed first when preparing the master budget is the __________ budget.
A. cash receipts
B. inventory purchases
C. sales
D. administrative expense
Question 17 of 20
Direct labor includes the wages of __________.
A. an hourly worker producing the product
B. the shop foreman
C. maintenance workers
D. administrators
Question 18 of 20
The formula for cost of goods manufactured is __________.
A. raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory
B. raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory
C. beginning work-in-process plus total manufacturing cost minus ending work-in-process
D. raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory
Question 19 of 20
The statement of cost of goods manufactured does not include __________.
A. direct labor costs
B. raw material costs
C. manufacturing overhead
D. all of the above
The answer should be none of the above
Question 20 of 20
Journal entries crediting Payroll and debiting Work-in-Process Inventory are made for __________.
A. administrative salaries
B. hourly manufacturing labor
C. foremen’s salaries
D. raw materials
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