Cost Accounting and Analysis Ch 3 - LearnSmart

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

as they are incurred

Finished goods ______.

consists of completed, unsold goods

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

cost of goods manufactured

The difference between the entries to record depreciation on office equipment and depreciation on factory equipment is that one ______.

debits Depreciation expense, while the other debits Manufacturing overhead

A journal entry that debits Manufacturing overhead and credits Accounts payable would not be used to record ______.

direct labor costs

A journal entry that debits Manufacturing overhead and credits Prepaid insurance records the ______.

expiration of prepaid factory insurance

Manufacturing overhead costs include ______.

factory insurance the factory supervisor's salary

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

finished goods

Cost of goods manufactured ______.

includes the manufacturing costs of goods finished during the period

Labor costs charged to Manufacturing Overhead represent ______ labor costs.

indirect

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

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 materials

Costs of partially completed units are accounted for in ______.

work in process

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

recognition of accrued property taxes

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

work in process

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

an expense account and credits Cash or a liability

The journal entry to record expired prepaid factory insurance debits ______.

Manufacturing Overhead and credits Prepaid Insurance

Which of the following is a clearing account?

Manufacturing overhead

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 issuing materials to be used in production credits ______.

Raw materials

Which of the following statements are true?

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.

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

Selling costs Administrative costs

Manufacturing overhead is applied with a debit to ______.

Work in process

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

The Manufacturing Overhead account is debited when ______.

actual overhead costs are incurred

Work in Process consists of ______.

applied manufacturing overhead actual direct labor cost actual direct materials cost

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 Manufacturing overhead and credits Accounts payable could be made to record ______.

rent expense on factory equipment factory utilities expense