Chapter 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 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

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

Always the credit side

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.

The simpler method of closing out the balance of Manufacturing overhead is ______. Multiple choice question.

closing it out to Cost of goods sold

Underapplied or overapplied overhead is the ______.

difference between overhead applied to work in process and actual overhead

Manufacturing overhead costs include ______. Multiple select question. factory insurance the factory supervisor's salary direct materials office equipment depreciation the CEO's salary

factory insurance the factory supervisor's salary

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

finished goods

Labor costs charged to Manufacturing Overhead represent ______ labor costs.

indirect

Manufacturing overhead consists of all ______.

manufacturing costs other than direct labor and direct materials

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

only direct

The difference between overhead applied to work in process and actual overhead is ______.

overapplied or underapplied overhead

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

raw materials

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

Manufacturing overhead costs include ______. Multiple select question. the CEO's salary office equipment depreciation the factory supervisor's salary direct materials factory insurance

the factory supervisor's salary factory insurance

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

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

work in process

To calculate total manufacturing costs, add direct materials, direct labor and ______.

applied manufacturing overhead

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

as they are incurred

The payment of a dividend ______ retained earnings.

Decreases

The ending balance in retained earnings = beginning balance in retained earnings + net operating income - .

Dividends

Which of the following would not be charged to the Manufacturing overhead account? Multiple choice question. Supervisor's salary Factory rent Depreciation on factory equipment Nonmanufacturing costs

Non manufacturing costs

Any purchased materials that will go into the ________finished product are first recorded in the. __________inventory account.

Raw materials

Which of the following costs are charged directly to the income statement? Multiple select question. Selling costs Direct materials Administrative costs Manufacturing overhead Direct labor

Selling costs Administrative costs

Which of the following statements are true? Multiple select question. Raw materials inventory only includes the cost of direct materials. 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. Direct labor costs flow through the Raw materials inventory account

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.

Which of the following statements are true? Multiple select question. When materials are purchased they are recorded in the Raw materials inventory account. Raw materials inventory only includes the cost of direct materials. Direct labor costs flow through the Raw materials inventory account. Raw materials inventory represents the cost of materials not yet used in production.

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.

Which of the following statements are true? Multiple select question. 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. Raw materials inventory only includes the cost of direct materials. Direct labor costs flow through the Raw materials inventory account.

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.

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

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

accounts payable

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

application of manufacturing overhead costs