Chapter #3

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

Given the following, calculate total manufacturing costs added to production: 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

$186,000

Direct materials used for the period cost $66,000; Direct labor cost $80,000; Applied overhead was $60,000; Beginning work in process inventory was $27,000; and Ending work in process inventory was $25,000. Calculate the cost of goods manufactured.

$208,000

Given: Cost of goods manufactured of $234,000; beginning finished goods inventory of $18,000; and ending finished goods inventory of $24,000, calculate unadjusted cost of goods sold.

$228,000

Given the following, calculate the cost of goods available for sale. Cost of goods manufactured: $234,000 Beginning Finished goods inventory of $18,000 Ending Finished goods inventory of $24,000

$252,000

Given the following, compute the cost of goods manufactured. Direct material cost: $40,000 Direct labor cost: $100,000 Applied overhead: $120,000 Beginning work in process inventory: $30,000 Ending work in process inventory: $12,000

$278,000

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

Given the following, calculate the cost of goods available for sale. Cost of goods manufactured: $410,000 Beginning Finished goods inventory: $110,000 Ending Finished goods inventory: $125,000

$520,000

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

Which of the following are used to calculate Cost of goods available for sale on the schedule of cost of goods sold?

Cost of goods manufactured Beginning finished goods inventory

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 depreciation on office equipment debits ______.

Depreciation expense and credits Accumulated depreciation

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

Selling costs Administrative costs

The transfer of costs from one inventory account to the next parallels the physical transfer of goods from one inventory to the next.

True

Which of the following statements are true?

When materials are purchased they are recorded in the Raw materials inventory account. Raw materials inventory represents the cost of materials not yet used in production.

Overhead is overapplied if ______.

actual overhead is less than applied overhead

Overhead is underapplied if ______.

actual overhead is more than applied overhead

A credit balance in Manufacturing overhead means overhead is ______.

overapplied

Selling and administrative costs incurred are treated as ______.

period expenses

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

raw materials

The schedule of cost of goods summarizes the portions of those costs that remain in ending Finished Goods inventory and that are transferred out of Finished Goods into Cost of Goods Sold.

sold

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

Cost of goods manufactured is the ______.

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

Given the following, calculate total manufacturing costs to account for: Direct materials: $40,000 Direct labor: $100,000 Manufacturing overhead applied: $120,000 Actual manufacturing overhead: $110,000 Beginning Work in process inventory: $30,000 Ending Work in process inventory: $12,000

$290,000

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

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

as they are incurred

Methods to dispose of underapplied or overapplied manufacturing overhead are ______.

close it to Cost of goods sold allocate it to Work in process, Finished goods, and Cost of goods sold

Finished goods ______.

consist of completed, unsold goods

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

cost of goods manufactured

Applied manufacturing overhead is ______ to the Manufacturing overhead account.

credited

Actual manufacturing overhead is ______ to the Manufacturing overhead account.

debited

A journal entry that debits Depreciation expense and credits Accumulated depreciation records ______.

depreciation on office equipment

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

The sum of all amounts transferred from work in process to the finished goods accounts represents the cost of good ______.

manufactured

A debit balance in Manufacturing overhead means overhead is ______.

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

Completed units that have not yet been sold are found in inventory.

finished goods

Cost of goods manufactured ______.

includes manufacturing costs of goods finished during the period

Manufacturing overhead consists of all ______.

manufacturing costs other than direct labor and direct materials

Gross margin minus selling and administrative expenses equals ______.

net operating income

Units of product that are only partially complete are contained in process inventory.

work in

Costs of partially completed units are accounted for in ______.

work in process

When a job is completed, the job costs are transferred OUT OF ______.

work in process