CH 3

Bailliere Company recorded cash sales of $300,000 and cost of goods sold relating to those sales of $120,000 on its Excel spreadsheet during the month of June. At the end of June, the company closed its underapplied overhead in the amount of $5,000 to cost of goods sold and reflected that transaction on its spreadsheet. What is the amount of cost of goods sold that will be reported on the company's income statement for the month of June?

$125,000

which account should be debited and which account should be credited. -Manufacturing overhead is applied to jobs using a predetermined overhead rate.

debit- work in process credit- manufacturing overhead

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

sales commissions

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

Debit to Cost of Goods Sold

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

Credit to Manufacturing Overhead.

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, and credit Raw Materials.

Sexton Company uses an Excel spreadsheet to track its account balances. When the company applies overhead to production for the month of May, how will the company's account balances be affected on that spreadsheet?

Work in Process will increase.

When companies incur selling and administrative costs, those costs ________.

do not flow through the three inventory accounts

Manufacturing overhead applied $150,000 Actual amount of manufacturing overhead costs 120,000 -What is the balance of the Manufacturing Overhead account and is overhead underapplied or overapplied at the end of the year?

Credit of $30,000 overapplied

which account should be debited and which account should be credited. -Lubricating oil, waste cotton, and solder are used in the factory.

debit- manufacturing overhead credit- raw materials

which account should be debited and which account should be credited -salary of the Production Supervisor is payable.

debit- manufacturing overhead credit- salaries and wages payable

which account should be debited and which account should be credited -Direct materials are issued into production for a specific job.

debit- work in process credit- raw materials

which account should be debited and which account should be credited. -The wages of direct laborers who worked on a particular job are payable.

debit- work in process credit- salary and wages payable

Carmen, Inc. started the year with $100,000 of retained earnings. The company reported $125,000 of net operating income and declared $35,000 of dividends. What is the amount of the company's ending retained earnings?

$190,000

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 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

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 that would appear in the Schedule of Cost of Goods Manufactured for October?

$135,000

Zimmer, Inc. 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?

$90,000