ACCT 2521 Chapter 2 Learnsmart

The process used to assign overhead costs to products is called over head __________________

application

Manufacturing overhead costs:

consist of many different items are indirect costs

A total of $10000 in MOH was applied to job #40. The journal entry to this record would:

debit Work in Progress $10000 and credit manufacturing overhead $10000

Widely used allocation bases in manufacturing are:

direct labor hours machine hours direct labor cost

The total cost of a job includes:

direct materials cost direct labor cost applied manufacturing overhead

Categories of manufacturing costs include:

direct materials, direct labor and MOH

Direct labor costs are costs that are:

easily traced to a particular job accounted for on a time ticket

To calculate a predetermined overhead rate divide estimated manufacturing overhead by

estimated allocation base

A journal entry that debits MOH and credits accounts payable record be made to record:

factory utilities expense rent expense on factory equipment

Typical Cost drivers include

flight hours computer time machine hours

_________ is an example of direct labor

maintenance

The Manufacturing Overhead account contains:

many different kinds of indirect costs

A journal entry that debits Raw Materials and credits Accounts payable is recording the:

purchase of materials

The journal entry to record shipped goods to customers includes a debit to:

Cost of Goods Sold

What kinds of costs are assigned to units of product in absorption costing?

Fixed Manufacturing Costs and Variable Manufacturing Costs

The schedule of cost goods ___________ summarizes costs that remain in Work In Progress and that have been transferred to Finished goods inventory

Manufactured

the document that records the materials, labor, and MOH costs charged to a job is the:

Job cost sheet

What account is debited for the insurance of indirect materials?

MOH

A job costing sheet contains:

MOH costs charged to the job labor costs charged to the job material costs charged to the job

The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find:

Overhead applied to the job

A journal entry debiting salaries expense and crediting salaries and wages payable could record:

administrative salary costs

A measure such as direct-labor hours or machine hours used to assign overhead costs to products and services is called a cost driver or a(n)

allocation base

The journal entry that debits Work In Progress and Manufacturing Overhead and credits Salaries and Wages payable is recording:

direct and indirect labor costs

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

goods are sold

What would be classified as Manufacturing Overhead

supervisor salary factory utilities factory rent

Steps of Requisitioning and issuing materials

(1) A production order is issued (2) The production department prepares a materials requisition form (3) The materials requisition form is presented to the store room clerk (4) The storeroom clerk issues materials

Steps needed to compute the POHR

(1) estimate the total amount of the allocation base (2) Estimate the total fized manufacturing overhead and variable overhead per unit for the upcoming period (3) Estimate the total MOH for the upcoming period (4) Compute POHR

Match each event in the process of accounting for MOH with the appropriate entry (a) Actual overhead is incurred (b) Overhead is applied to Work In Progress (c) the Period Ends (1) Manufacturing overhead is credited (2) Manufacturing overhead is closed (3) Manufacturing overhead is debited

(a) and (3) (b) and (1) (c) and (2)

What are used to calculate Cost of goods available for sale

Beginning finished goods inventory Cost of goods manufactured

What costs are charged directly to the income statement

Selling and administrative expenses

Manufacturing overhead costs include

The factory supervisor's salary Factory insurance

Units of product that are only partially completed are contained in ______________ _______________ _______________ inventory

Work In Progress

When a job is completed the job costs are transferred out of

Work In Progress