Chapter 3
How do we find total manufacturing costs added to production
Direct materials used in production + Direct Labor + Manufacturing overhead applied to work in process
where are period costs recorded?
Income statement
How do we obtain direct materials used in production?
Raw materials used in production - indirect materials used in production
how do we find unadjusted cost of goods sold
cost of goods available for sale - ending finished goods inventory
when companies incur selling and administrative costs, those costs
do not flow through the three inventory accounts
what are products that are completed but not yet sold
finished goods
What costs are not recorded on the balance sheet
period costs
how do we find cost of goods manufactured
total manufacturing costs to account for - ending work in process inventory
how do we find total manufacturing costs to account for
total manufacturing manufacturing costs to account for + work in process inventory
how do we find adjusted cost of goods sold
unadjusted cost of goods sold +/- under or over applied overhead
what consists of products that are only partially complete?
work in process
where are raw material costs used as direct materials transferred to
work in process
How do we find cost of goods available for sale
beginning finished goods inventory + cost of goods manufactured
Which of the following occurs when manufacturing overhead is applied to work in process
credit to manufacturing overhead
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 occurs when finished jobs are shipped to customers?
debit to cost of goods sold
what manufacturing costs are not part of MOH
direct materials and direct labor
how do we find manufacturing overhead applied to work in process
predetermined overhead rate * Actual allocation base
what are the two classifications of costs?
product and period costs
any materials that go into the final product
raw materials