ACCT 3203 - Exam 1
Completed units that have not been yet sold are found in ___________ _______ inventory.
Finished Goods
When jobs are sold their costs are transferred out of:
Finished Goods
The journal entry to record $20,000 in depreciation on factory equipment is debit _________.
Manufacturing Overhead $20,000 and credit Accumulated Depreciation $20,000
The formula for applying overhead to a specific job is:
Predetermined overhead rate x Amount of allocation base incurred by job
Any purchased materials that will go into the finished product are first recorded in the _____ ________ inventory account.
Raw Materials
Units of products that are only partially complete are contained in the _______ ___ _______ inventory.
Work In Process
When a job is completed, which account is credited?
Work in process
George Corporation recognized $1,000 of accrued property taxes on its manufacturing facility. The journal entry to record this would debit:
Manufacturing overhead $1,000 and credit Property taxes payable $1,000
When labor costs are incurred, ________ are added directly to the Work in Process account.
Only direct labor costs
Job #4260 consisted of 1,000 units at a total cost of $200,000. The cost transferred to Cost of Goods Sold for the sale of 600 of the units is:
$120,000 $200,000/1,000 x 600= $120,000
A journal entry debiting Salaries expense and crediting Salaries and wages payable could record ___________.
Administrative Salaries
A journal entry that debits Work in process and credits Manufacturing overhead is recording the:
Application of manufacturing overhead costs
The journal entry that debits Work in Process and Manufacturing overhead and credits Salaries and Wages Payable is recording:
Direct and indirect labor costs
The formula for a predetermined overhead rate is:
Estimated manufacturing overhead cost divided by estimated allocation base
Cost of goods manufactured:
Includes the manufacturing costs of goods finished during the period
The journal entry to record a cash payment of $400 for insurance on administrative office equipment debits ________ and credits cash.
Insurance expense
A journal entry that debits Work in process and Manufacturing overhead and credits Raw materials records the:
Issuance of materials