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Question 94 pts When using vertical analysis, net cost of goods sold is the 100% benchmark...

Question 94 pts

When using vertical analysis,

net cost of goods sold is the 100% benchmark against which all other income statement amounts are compared.
net cost of goods sold is the 100% benchmark against which all other balance sheet amounts are compared.
net sales is the 100% benchmark against which all other income statement amounts are compared.
net sales is the 100% benchmark against which all other balance sheet amounts are compared.

horizontal analysis cannot be applied to the same company.

Question 204 pts

After application of factory overhead (FOH) to the Work In Process inventory for the year, the FOH account has a debit balance of $4,500. This balance is considered immaterial by management. Factory overhead for the year has been

overapplied.
underapplied.
neither overapplied nor underapplied.

The answer cannot be determined, because the amount is considered immaterial, rather than material.

Question 214 pts

When manufactured goods are placed in the Finished Goods inventory, they are considered ready to market to customers. The expense journal entry for this sale to customers always has a debit entry to

cost of goods sold.
Finished Goods inventory.
Work In Process inventory.

Cash.

Question 224 pts

The floor supervisor for the manufacturing division of Appep Products, Inc., a company that uses the job order costing method of accounting for product, requisitions raw materials from the RM storeroom and put this material in the manufacturing process. The journal entry that should be made by Appep to account for this requisition is

debit raw materials inventory, credit work in process inventory.
debit raw materials inventory, credit finished goods inventory.
credit raw materials inventory, debit factory overhead account.

None of the above entries is correct.

Question 234 pts

When the perpetual inventory method is used, which is normal when a company uses job order costing, the Statement of Cost of Goods Manufactured, shown in your textbook on p. 902,

is not necessary.
contains both a sales entry and a cost of good sold entry.
has, as its main objective, a reconciliation of beginning and ending balances in the Cost of Goods Sold account.
is required by the Securities and Exchange Commission in the company's annual report.

Homework Answers

Answer #1
Vetical analysis
net sales is the 100% benchmark against which all other
income statement amounts are compared
q) under applied
hence debit balance in FOH
3) cost of goods sold
4) Appep
Debit raw materials inventory ,credit work In process
inventory
5) has its main objective , a reconciliation of beginning and ending
balances in COGS
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