ACC206 Week 3 Quiz Solution Guide 1. In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense.

# ACC206 Week 3 Quiz Solution Guide 1. In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense.

1. In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense.TrueFalse 2. Which of the following describes the cost of goods manufactured?The cost of the goods that were sold during the periodThe total cost of all goods that were completed, or partially completed during the periodThe cost of those goods which were completed during the periodThe total costs in inventory at the end of the period3. The following information pertains to Bright Toy Companys operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.Purchases \$ 126,000Selling and Administrative Expenses 90,000Merchandise inventory, 1/1/2012 14,000Merchandise inventory, 12/31/2012 10,000Sales Revenue 250,000What is the gross profit for 2012?\$120,000 \$130,000\$140,000\$136,000None of these is correct4. All manufacturing overhead costs incurred are accumulated as debits to a general ledger account titled Manufacturing overhead.True False5. Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:Total manufacturing overhead estimated at the beginning of the year: \$140,000Total direct labor costs estimated at the beginning of the year: \$350,000Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hoursActual manufacturing overhead costs for the year: \$159,000Actual direct labor costs for the year: \$362,000Actual direct labor hours for the year: 12,400 direct labor hoursBased on the data above, how much manufacturing overhead was allocated to production? (Please round to nearest whole dollar.)\$825,360\$905,000\$144,800 \$159,280None of these is correct6. When materials are requisitioned for a job, the materials inventory account is debited. (Points : 1)True False 7. The following information pertains to Bright Toy Companys operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.Purchases \$ 126,000Selling and Administrative Expenses 90,000Merchandise inventory, 1/1/2012 14,000Merchandise inventory, 12/31/2012 10,000Sales Revenue 250,000What is the cost of goods sold for 2012?\$104,000\$124,000\$130,000 \$140,000None of these is correct8. Process costing is used by companies that produce large numbers of identical units in a continuous fashion.True False9. Selected data for Young Company for 2012 is presented below:Direct labor incurred \$30,000Indirect labor incurred 21,000Factory depreciation 5,000Factory utilities 7,000Indirect materials used 2,000Direct materials used 12,000Property taxes on factory building 3,000Sales commissions 8,000What is the manufacturing overhead?\$47,000\$50,000\$38,000 \$46,000None of these is correct10. Indirect materials and indirect labor are tracked to individual job costing records and recorded in the Work in process account.True False