Ch 3 - Job-Order Costing: Cost Flows and External Reporting

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

Raw materials inventory was $5,000 at the beginning of the year and $12,000 at the end of the year. During the year, a total of $27,000 in raw materials were purchased, including $4,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period.

$16,000

Given: Cost of goods manufactured of $410,000; beginning finished goods inventory of $110,000 and ending finished goods inventory of $125,000, calculate unadjusted cost of goods sold.

$395,000

A company reports Gross margin of $100,000, Cost of goods sold of $70,000, and Selling and administrative expenses of $45,000. Net operating income (loss) is ______.

$55,000

Luver Corporation's Gross margin is $100,000, Cost of goods sold equals $70,000, and Selling and administrative expenses total $45,000. Net operating income is ______.

$55,000

Raw materials inventory was $27,000 at the beginning of the year and $25,000 at the end of the year. During the year, $100,000 in raw materials were purchased, including $28,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period.

$74,000

George Corporation recognized $1,000 of accrued property taxes on its manufacturing facility. The journal entry to record this debits ______.

Manufacturing overhead $1,000 and credits Property taxes payable $1,000

When a job is completed, its costs are transferred into ______.

finished goods

completed units that have not yet been sold are found in ___ ___ inventory

finished goods

labor costs charged to manu overhead represent

indirect labor costs

a journal entry that debits work in process and manu overhead and credits raw materials records the

issuance of materials

manu overhead consists of all

manu costs other than direct labor and direct materials

If a company incurs $2,000 of factory rent, $1,000 of factory utilities, and $5,000 of miscellaneous factory costs, the journal entry to record these transactions would be to debit ______.

manu overhead $8000 and credit accts payable $8000

The cost of goods ___ is the sum of all amounts transferred from Work in process to Finished goods during a period.

manufactured

The schedule of cost of goods ___ summarizes costs that remain in Work in process inventory and that have been transferred from Work in process to Finished goods inventory.

manufactured

Which of the following would not be charged to the Manufacturing overhead account?

nonmanu costs

when labor costs are incurred, ___ are added directly to the work in process acct

only direct labor costs

A credit balance in the Manufacturing Overhead account means overhead was ___.

overapplied

a journal entry that debits raw materials and credits accounts payable is recording the

purchase of materials

any purchased materials that will go into the finished product are first recorded in the ___ ___ inventory account

raw material

the journal entry to record issuing materials to be used in production credits

raw materials

a journal entry that debits manu overhead and credits property taxed payable records the

recognition of accrued property taxes

The schedule of cost of goods ___, summarizes costs that remain in Finished goods inventory and that have been transferred to Cost of goods sold.

sold

Cost of goods manufactured is the ______.

sum of all jobs transferred from Work in process to Finished goods

A debit balance in Manufacturing overhead means overhead was

underapplied

When only a portion of the units involved in a job are sold, the ______.

unit product cost is used to calculate the amount transferred from finished goods to cost of goods sold

which of the following statements are true

when materials are purchased they are recorded in the raw materials inventory acct; raw materials inventory represents the cost of materials not yet used in production

costs of partially completed units are accounted for in

work in process

manu overhead is applied with a debit to

work in process

units of product that are only partially complete are contained in the

work in process

What methods can be used to dispose of underapplied or overapplied manufacturing overhead?

Allocate it to Work in process, Finished goods, and Cost of goods sold; Close it to Cost of goods sold.

What side of the Manufacturing overhead account is actual manufacturing overhead entered on?

Always the debit side

Which of the statements regarding closing out over or underapplied overhead is correct?

Closing to Cost of goods sold is simpler, and allocating is more accurate.

Underapplied or overapplied manufacturing overhead can be disposed of by closing it to ______.

Cost of goods sold or allocating it to Work in process, Finished goods, and Cost of goods sold

the journal entry to record the purchase of materials credits

accounts payable

The Manufacturing Overhead account is debited when ______.

actual overhead costs are incurred

the manu overhead account is debited when

actual overhead costs are incurred

Overhead is overapplied if ______.

actual overhead is less than applied overhead

Overhead is underapplied if ______.

actual overhead is more than applied overhead

Which of the following costs are charged directly to the income statement?

admin costs; selling costs

A journal entry debiting Salaries expense and crediting Salaries and wages payable could record ______.

admin salaries

The journal entry to record selling and administrative salaries debits ______.

an expense acct and credits Cash or a liability

A journal entry that debits Work in process and credits Manufacturing overhead is recording the ______.

application of manu overhead costs

Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account

as they are incurred

finished goods

consists of completed unsold goods

the ___ side of the manu overhead acct is always used to recorded manu overhead applied to production and the ___ side is always used to record the actual manu overhead costs incurred

credit; debit

Actual manufacturing overhead is ______ to the Manufacturing overhead account.

debited

a journal entry that debits manu overhead and credits accts payable would not be used to record

direct labor costs

Unadjusted cost of goods sold is calculated by subtracting ______.

ending finished goods inventory from goods available for sale