SB 2
When materials are purchased they are first recorded in the ______ account.
Raw Materials Inventory
Applied manufacturing overhead costs are credited to the Manufacturing Overhead account ______.
as the costs are applied to jobs
The cost of goods ___ report summarizes the flow of manufacturing costs from Raw Materials to Work in Process Inventory and into Finished Goods.
manufactured
Nonmanufacturing costs incurred during a period are treated as ______.
period expenses
Overhead costs are debited to Work in Process when ______.
they are applied to jobs
Costs are transferred out of Finished Goods inventory ______.
when goods are sold
Nonmanufacturing costs increase ______.
the Selling, General & Administrative expense accounts
Given the following, calculate total current 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 Rationale: Total manufacturing costs = $40,000 + $100,000 + $120,000 = $260,000
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 Rationale: Cost of direct materials = Beginning Inventory + Purchases - Indirect Materials - Ending Inventory ($27,000 + $100,000 - $28,000 - $25,000 = $74,000)
When is the predetermined overhead rate calculated?
Before the period begins
The first step in assigning manufacturing overhead costs using a predetermined overhead rate is to ______.
determine the cost driver
To calculate direct materials on the schedule of cost of goods manufactured, add purchases to beginning raw materials inventory and subtract ______.
ending raw materials inventory and indirect materials used
When a job is completed, its costs are transferred into ______.
Finished Goods
Which of the following items are included on a cost of goods manufactured report?
Beginning and ending raw materials inventory Applied manufacturing overhead Beginning and ending work in process inventory