ch3 242 sb

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

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

-Selling costs -Administrative costs

Units of product that are only partially complete are contained in

work in process inventory

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

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 ____

Manufacturing overhead $8,000 and credit Accounts payable $8,000

The journal entry to record accrued property taxes for a factory building debits _____

Manufacturing overhead and credits Property taxes payable

The Manufacturing Overhead account is debited when ______

actual overhead costs are incurred

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

an expense account and credits Cash or a liability

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

application of manufacturing overhead costs

Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account ______.

as they are incurred

The amount transferred from Work in Process to Finished Goods is ______.

cost of goods manufactured

Manufacturing overhead applied to production is always recorded on the ____ side of the manufacturing overhead account and the ____ side is always used to record the actual manufacturing costs incurred.

credit, debit

A journal entry that debits Work in process and Manufacturing overhead and credits Raw materials records the _____

issuance of materials

When labor costs are incurred, _________ labor costs are added directly to the Work in Process account.

only direct

Any purchased materials that will go into the finished product are first recorded in the:

raw material inventory account

Any purchased materials that will go into the finished product are first recorded in the ____ ____ inventory account.

raw materials

Cost of goods manufactured is the ______.

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

Completed units that have not yet been sold are found in:

finished goods inventory

A journal entry that debits Raw Materials and credits Accounts Payable is recording the ______.

purchase of materials

The journal entry to record issuing materials to be used in production credits ______.

raw materials

The journal entry to record the purchase of materials debits ______.

raw materials

A journal entry that debits Manufacturing overhead and credits Property taxes payable records the ______.

recognition of accrued property taxes

When calculating the cost of direct materials on the schedule of cost of goods manufactured, the cost of indirect materials is ______

subtracted from raw materials used in production

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

Costs of partially completed units are accounted for in ______.

work in process

Gross margin minus selling and administrative expenses equals ______.

net operating income

The journal entry to record $10,000 in manufacturing overhead applied to Job #40 debits ______

Work in process $10,000 and credits Manufacturing overhead $10,000

Work in Process consists of ______.

-applied manufacturing overhead -actual direct labor cost -actual direct materials cost

Manufacturing overhead costs include ______.

-factory insurance -the factory supervisor's salary

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

always credit side

Labor costs charged to Manufacturing Overhead represent ______ labor costs

indirect

Actual overhead costs may not be proportional to the actual amount of the allocation base used because ______.

-many actual overhead costs are fixed -overhead spending may not be under control

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 the following, calculate total manufacturing costs: Direct materials: $62,000 Direct labor: $78,000 Manufacturing overhead applied: $46,000 Actual manufacturing overhead: $51,000 Beginning work in process inventory: $32,000 Ending work in process inventory: $35,000 Multiple choice question.

186,000

Given the following, calculate total manufacturing costs: Direct materials: $40,000; Direct labor: $100,000; Manufacturing overhead applied: $120,000; Beginning Work in process inventory: $30,000; Ending Work in process inventory: $12,000

260,000

Meep Industries had unadjusted cost of goods sold of $300,000. Overhead was overapplied by $20,000. Adjusted cost of goods sold is ______.

280,000

Martin Industries had unadjusted cost of goods sold of $450,000. Overhead was underapplied by $30,000. Adjusted cost of goods sold is ______.

480,000

A company requisitioned $40,000 in direct materials and $30,000 in indirect materials from the storeroom to be used in production. The journal entry to record this transaction debits ______.

Work in process $40,000, debits Manufacturing overhead $30,000 and credits Raw materials $70,000

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

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