Question 94 pts
When using vertical analysis,
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net cost of goods sold is the 100% benchmark against which all
other income statement amounts are compared. |
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net cost of goods sold is the 100% benchmark against which all
other balance sheet amounts are compared. |
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net sales is the 100% benchmark against which all other income
statement amounts are compared. |
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net sales is the 100% benchmark against which all other balance
sheet amounts are compared. |
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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
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neither overapplied nor underapplied. |
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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
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Finished Goods inventory. |
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Work In Process inventory. |
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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
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debit raw materials inventory, credit work in process
inventory. |
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debit raw materials inventory, credit finished goods
inventory. |
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credit raw materials inventory, debit factory overhead
account. |
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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,
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contains both a sales entry and a cost of good sold entry. |
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has, as its main objective, a reconciliation of beginning and
ending balances in the Cost of Goods Sold account. |
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is required by the Securities and Exchange Commission in the
company's annual report. |
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