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Managerial Accounting

1.What is the appropriate journal entry if $100,000 of materials were purchased on account for the month of August?

a. Manufacturing Overhead Control 100,000
Accounts Receivable Control 100,000

b. Manufacturing Allocated 100,000
Accounts Receivable Control 100,000

c. Materials Control 100,000
Accounts Payable Control 100,000

d. Work-in-Process Control 100,000
Accounts Payable Control 100,000

2. What is the appropriate journal entry if direct materials of $50,000 and indirect materials of $3,000 are sent to the manufacturing plant floor?

a. Manufacturing Overhead Control 3,000
Materials Control 50,000
Work-in-Process Control 53,000

b. Work-in-Process Control 50,000
Materials Control 50,000

c. Work-in-Process Control 53,000
Materials Control 53,000

d. Work-in-Process Control 50,000
Manufacturing Overhead Control 3,000
Materials Control 53,000

3. What would be the appropriate journal entry if the following labor wages were incurred in a furniture manufacturing company?

Assembly workers $30,000
Janitors $20,000

a. Work-in-Process Control 30,000
Manufacturing Overhead Control 20,000
Wages Payable Control 50,000

b. Work-in-Process Control 50,000
Wages Payable Control 50,000

c. Manufacturing Overhead Control 50,000
Wages Payable Control 50,000

d. Wages Payable Control 50,000
Work-in-Process Control 50,000

4.When a job is complete:

a. actual direct materials, actual direct manufacturing labor, and allocated manufacturing overhead will comprise the total cost of the job

b. Finished Goods Control is credited

c. Work-in-Process Control is debited

d. the cost of the job is transferred to Manufacturing Overhead Control

5.The spreading of underallocated or overallocated overhead among ending work-in-process, finished goods, and cost of goods sold is called:

a. the proration approach

b. the adjusted allocation rate approach

c. the write-off of cost of goods sold approach

d. None of these answers are correct.

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6.For 20X5, Marcotte's Animal Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information:

Estimated Actual
Manufacturing overhead costs $100,000 $120,000
Machine-hours 20,000 25,000

Using job costing, the 20X5 budgeted manufacturing overhead rate is:

a. $6.00 per machine-hour

b. $5.00 per machine-hour

c. $4.00 per machine-hour

d. $4.80 per machine-hour

Solution Preview

1. c. Materials Control 100,000
Accounts Payable Control 100,000

Material will increase and because they are purchased on credit, accounts payable will increase

2. d. Work-in-Process Control 50,000 ...

Solution Summary

The solution explains some multiple choice questions in managerial accounting

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