67.The placing of direct materials into the production process is recorded by an entry crediting:
A. Materials Expense.
B. Raw Materials Inventory.
C. Work in Process Inventory.
D. Finished Goods Inventory.
68.The accountant for Eric's Plumbing Equipment Company recently made a journal entry consisting of a debit to Work in Process and a credit to Raw Materials Inventory. This entry recorded:
A. The use of raw materials in the production process.
B. Payment for raw materials.
C. The return of unused materials to inventory.
D. The receipt of raw materials from the company's supplier.
69.When direct materials are used:
A. Manufacturing Overhead is debited.
B. Raw Materials Inventory is debited.
C. Cost of Goods Sold is debited.
D. Work in Process Inventory is debited.
70.The payment of raw materials previously purchased on account is recorded by an entry debiting:
A. Raw Materials Inventory.
B. Accounts Payable.
C. Work in Process Inventory.
D. Cash.
71.The payment of wages to factory employees who work directly on the goods being manufactured is recorded by an entry crediting:
A. Wages Expense.
B. Direct Labor.
C. Work in Process Inventory.
D. Cash.
72.When direct labor employees contribute to the production process, the cost of their labor is recorded by debiting:
A. Wages Expense.
B. Direct Labor.
C. Work in Process Inventory.
D. Manufacturing Overhead.
73.If the end of the fiscal year is not a payroll date, the Direct Labor account normally has:
A. A debit balance, representing prepaid labor costs.
B. A credit balance, representing accrued wages payable.
C. Either a debit or a credit balance, depending upon whether the end of the fiscal year falls before or after the end of the pay period.
D. A zero balance, because the Direct Labor account is closed along with the other expense accounts.
74.In the year-end financial statements, the Manufacturing Overhead account should have:
A. A debit balance, representing overhead on hand and available for use.
B. A credit balance, representing accumulated depreciation and amounts owed to suppliers of overhead items.
C. Either a debit or a credit balance, depending upon whether the overhead application rate used throughout the year was higher or lower than 100%.
D. A zero balance, since all overhead costs incurred during the period should have been assigned to the production of the period.
75.Since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing units of product, these costs are debited to:
A. The Direct Materials Inventory, Direct Labor, and Manufacturing Overhead accounts.
B. Expense accounts.
C. The Work in Process Inventory account.
D. The Cost of Goods Sold account.
76.Since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing units of product, these costs are credited to:
A. The Direct Materials Inventory, Direct Labor, and Manufacturing Overhead accounts respectively.
B. Liability accounts.
C. The Work in Process Inventory account.
D. The Cost of Goods Sold account.