Chapter 3 ACC102 Smartbook
The Manufacturing Overhead account is debited when...
actual overhead costs are incurred
Overhead is overapplied if...
actual overhead is less than applied overhead
Manufacturing overhead applied to a production is always recorded on the (BLANK) side of the manufacturing overhead account and the (BLANK) side is always used to record the actual manufacturing costs incurred.
credit; debit
The journal entry to record accrued property taxes for a factory building debits...
manufacturing overhead and credits property taxes payable
When labor cost are incurred, (BLANK) labor costs are added directly to the Work in Process account.
only direct
A credit balance in the manufacturing overhead account means overhead was...
overapplied
The difference between overhead applied to work in process and actual overhead is...
overapplied or underapplied overhead
The journal entry to record issuing materials to be used in production credits...
raw materials
The journal entry to record the purchase of materials debit (BLANK)
raw materials
The schedule of cost of goods (BLANK) summarizes costs that remain in Finished goods inventory and that have been transferred to Cost of goods sold.
sold
Cost of goods manufactured is the...
sum of all jobs transferred from Work in process tp finished goods
A debit balance in manufacturing overhead means overhead was...
underapplied
Overhead is underapplied if...
actual overhead is more than applied overhead
To calculate the adjusted cost of goods sold...
add underapplied overhead to or subtract overapplied from unadjusted cost of goods sold
Manufacturing overhead costs include...
factory rent, factory utilities and factory maintenance wages.
The journal entry to record a completed job debits...
finished goods
When a job is completed, its costs are transferred into...
finished goods
Actual overhead costs may not be proportional to the actual amount of the allocation base used because...
overhead spending may not be under control and many actual overhead costs are fixed
A journal entry that debits Manufacturing overhead and credits Accounts payable could be made to record...
rent expense on factory equipment and factory utilities expense.
Net operating income is calculated by subtracting (BLANK) from (BLANK)
selling and administrative expenses; gross margin
When materials are purchased they are recorded in the (BLANK) inventory account
raw materials
Which of the following costs are found on the balance sheet of a manufacturer? Direct Labor Manufacturing Overhead Raw Materials Selling and Administrative
Direct Labor, Manufacturing Overhead, and Raw Materials
What side of the Manufacturing overhead account is actual manufacturing overhead entered on?
Always the debit side
The journal entry to record the purchase of materials credits...
accounts payable
Which of the following would not be charged to the Manufacturing overhead account? Nonmanufacturing costs supervisior's salary depreciation on factory equipment factory rent
Nonmanufacturing costs
Any purchased materials that will go into the finished product are first recorded in the (BLANK) inventory account.
Raw Materials
Manufacturing Overhead is applied with a debit to...
Work in process
A journal entry debiting Salaries expense and crediting Salaries and wages payable could record...
administrative salaries
The journal entry to record selling and administrative salaries debits...
an expense account and credits cash or liability
Work in Process consists of...
applied manufacturing overhead, actual direct materials cost and actual direct labor cost
Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account...
as they are incurred
When preparing financial statements in a job-order costing system, finished goods flow first to the (BLANK) and then to the (BLANK).
balance sheet; income statement
What methods can be used to dispose of underapplied or overapplied manufacturing overhead?
close it to cost of goods sold and allocate it to work in process, finished goods, and cost of goods sold.
Finished goods...
consist of completed, unsold goods
The amount transferred from Work in Process to Finished Goods is...
cost of goods manufactured.
The accounts involved in closing underapplied or overapplied overhead using the simpler method are...
cost of goods sold and manufacturing overhead
Underapplied or overapplied manufacturing overhead can be disposed of by closing it to...
cost of goods sold or allocating it to work in process, finished goods, and cost of goods sold
Raw materials inventory represents the (BLANK) not yet used in production.
cost of materials
actual manufacturing overhead is (BLANK) to the manufacturing overhead account
debited
if overapplied overhead is closed out to cost of goods sold, the cost of goods sold account will be...
decreased
Underapplied or overapplied overhead is the....
difference between overhead applied to work in process and actual overhead
A journal entry that debits Manufacturing overhead and credits Account Payable would not be used to record...
direct labor costs
Cost of goods sold manufactured....
includes the manufacturing costs of goods finished during the period.
Labor cost charged to Manufacturing Overhead represent (BLANK) labor cost.
indirect
A journal entry that debits Work in Process and Manufacturing Overhead and credits Raw Materials records the...
issuance of materials
The cost of goods (BLANK) is the sum of all amounts transferred from Work in process to finished goods during a period.
manufactured
The schedule of cost of goods (BLANK) summarizes costs that remain in work in process inventory and that have been transferred from work in process to finished goods inventory
manufactured
Manufacturing overhead consists of all...
manufacturing costs other than direct labor and direct materials
When only a portion of the units involved in a job are sold, the...
unit product cost is used to calculate the amount transferred from finished goods to cost of goods sold
Costs of partially completed units are accounted for in...
work in process
When a job is completed, the job costs are transferred OUT OF...
work in process