Cost Chapter 3 - Jeff Long

Which of the following best describes the journal entry to record the use of direct and indirect labor in production?

Debit work in process, debit manufacturing overhead, and credit salaries and wages payable

Which of the following best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as direct and indirect materials in production?

Debit work in process, debit manufacturing overhead, credit raw materials

when companies incur selling and administrative costs, those costs

do not flow through the 3 inventory accounts

All of the following are product costs except: - manufacturing overhead costs - raw materials - sales commissions - direct labor

sales commissions

Zimmer, Incorporated started the month of January with beginning finished goods inventory of $20,000. The cost of goods manufactured during the month was $120,000 and the ending finished goods inventory was $50,000. What is the unadjusted cost of goods sold for January?

$20,000 + $120,000 - $50,000 = $90,000

For the month of October, Janus Corporation used $30,000 worth of direct materials in production and incurred direct labor costs of $60,000. Actual manufacturing overhead costs were $40,000, whereas $45,000 was the manufacturing overhead applied to work in process. What is the amount of total manufacturing costs added to production that would appear in the Schedule of Cost of Goods Manufactured for October?

Direct materials: $30,000 + Direct labor: $60,000 + Manu overhead applied to WIP $45,000 = $135,000

2. Salary of the Production Supervisor is payable.

Dr. Manufacturing Overhead Cr. Salaries and Wages Payable

Lubricating oil, waste cotton, and solder are used in the factory.

Dr. Manufacturing overhead Cr. Raw materials

5. Manufacturing overhead is applied to jobs using a predetermined overhead rate.

Dr. Work in Process Cr. Manufacturing overhead

1. Direct materials are issued into production for a specific job.

Dr. Work in Process Cr. Raw materials

4. The wages of direct laborers who worked on a particular job are payable.

Dr. Work in Process Cr. Salaries and wages payable

Which of the following occurs when manufacturing overhead is applied to Work in Process?

credit to manufacturing overhead

Which of the following occurs when a job has been completed and transferred to the finished goods warehouse?

credit to work in process

Which of the following occurs when finished jobs are shipped to customers?

debit to cost of goods sold