Question :
41. _____ firms acquire inventory items in a physical condition ready : 1230665
41. _____ firms acquire inventory items in a physical condition ready for sale.
A. Merchandising
B. Manufacturing
C. Technology
D. Production
E. Health Care
42. _____ firms transform raw materials, purchased parts, and components into finished products in their factories.
A. Merchandising
B. Manufacturing
C. Consulting
D. Staffing
E. Health Care
43. The acquisition cost of manufactured inventories do not includes which category of costs:?
A. Administrative
B. Manufacturing Overhead
C. Raw Materials
D. Direct Materials
E. Direct Labor
44. Which of the following is true regarding the Raw Materials Inventory account?
A. The Raw Materials Inventory account includes the cost of raw materials purchased but not yet transferred to the factory floor.
B. The manufacturing firm records purchases of raw materials as debits to the Raw Materials Inventory account.
C. When the manufacturer physically transfers raw materials to the factory floor, it also transfers the cost of the raw materials from the Raw Materials Inventory account to the Work-in-Process Inventory account.
D. When the manufacturer physically transfers raw materials to the factory floor, it records this transfer as a credit to the Raw Materials Inventory account for the cost of the raw materials transferred and a debit to the Work in Process Inventory account.
E. all of the above
45. Which of the following is not true regarding the Raw Materials Inventory account?
A. The Raw Materials Inventory account includes the cost of raw materials purchased but not yet transferred to the factory floor.
B. The merchandising firm records purchases of raw materials as debits to the Raw Materials Inventory account.
C. When the manufacturer physically transfers raw materials to the factory floor, it also transfers the cost of the raw materials from the Raw Materials Inventory account to the Work-in-Process Inventory account.
D. When the manufacturer physically transfers raw materials to the factory floor, it records this transfer as a credit to the Raw Materials Inventory account for the cost of the raw materials transferred and a debit to the Work in Process Inventory account.
E. all of the above
46. Which of the following is/are true regarding the Work-in-Process Inventory account?
A. accumulates the cost of raw materials transferred to the factory floor
B. accumulates the cost of direct labor used in production
C. accumulates the manufacturing overhead costs.
D. the Work-in-Process Inventory account is credited for the manufacturing costs assigned to the finished units transferred to the finished goods storeroom
E. all of the above
47. Which of the following not true regarding the Work-in-Process Inventory account?
A. accumulates the cost of raw materials transferred to the factory floor
B. accumulates the cost of direct labor used in production
C. accumulates the manufacturing overhead costs.
D. accumulates the administrative costs.
E. the Work-in-Process Inventory account is credited for the manufacturing costs assigned to the finished units transferred to the finished goods storeroom
48. Brussels Products began its Belgian operations on January 1.The following is the journal entry for the issuance, to producing departments of raw materials costing €20,000.
A. Work-in-Process Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 20,000
B. Work-in-Process Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Finished Goods Inventory . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
C. Finished Goods Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Raw Materials Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
D. Work-in-Process Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Raw Materials Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
E. Raw Materials Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Work-in-Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
49. Brussels Products began its Belgian operations on January 1. The following is the journal entry for the total payroll for January of €60,000: €40,000 paid to factory workers and €20,000 paid to marketing and administrative personnel.
A. Direct Labor Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Salaries Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
B. Salaries Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
C. Work-in-Process Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
D. Work-in-Process Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Salaries Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
E. Work-in-Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Salaries Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
50. Which of the following is/are true regarding the Finished Goods Inventory account?
A. measures the total manufacturing cost of units completed but not yet sold.
B. sale of manufactured goods to customers results in a transfer of their cost from the Finished Goods Inventory account to Cost of Goods Sold
C. the journal entry for the sale of the inventory to a customer is a debit to Cost of Goods Sold and a credit to Finished Goods Inventory.
D. all of the above
E. none of the above
