Accounting Chapter 3

a journal entry that debits finished goods and credits work in process records the

completion of a job

the cost of goods ------- is the sum of all amounts transferred from work in process goods to finished goods during a period

manufactured

what account is debited to record indirect labor costs?

manufacturing overhead

which account is credited when manufacturing overhead is applied

manufacturing overhead

the journal entry to record depreciation on factory equipment debits

manufacturing overhead and credits accumulated depreciation

which of the following would not be charged to the manufacturing overhead account?

non-manufacturing costs

when a job is completed, which account is debited

finished goods

a journal entry debiting cost of goods sold and crediting finished goods is made when

goods are sold

overhead is applied if

actual overhead is less than applied overhead

completed units that have not yet been sold are found in ------ ----- inventory

finished goods

a journal entry that debits manufacturing overhead and credits accounts payable would not be used to record: A) direct labor costs B) rent on factory equipment C) factory utilities costs D) miscellaneous factory overhead costs

direct labor costs

The cost of jobs still unfinished at the end of a period are included in: a. ending work in process inventory b. beginning finished goods inventory for the next period c. the income statement d. cost of goods manufactured

ending work in process inventory

the journal entry to record issuing materials to be used in production credits ------

raw materials

true or false: underapplied or overapplied overhead occurs because overhead is applied to jobs using a predetermined rate based on estimates of costs and activity levels

true

a debit balance in manufacturing overhead means overhead was

underapplied

when a job is completed, which account is credited?

work in process