Chapter 3. Job-Order Costing: Cost Flows and External Reporting
calculate total manufacturing costs: Direct materials cost: $62,000 Direct labor cost: $78,000 Manufacturing overhead applied: $46,000 Actual manufacturing overhead: $51,000 Beginning Work in process inventory: $32,000 Ending Work in process inventory: $35,000
$186,000
Cost of goods manufactured of $234,000; beginning finished goods inventory of $18,000; and ending finished goods inventory of $24,000, calculate unadjusted cost of goods sold.
$228,000
Given the following, calculate total manufacturing costs: Direct materials: $40,000; Direct labor: $100,000; Manufacturing overhead applied: $120,000; Beginning Work in process inventory: $30,000; Ending Work in process inventory: $12,000
$260,000
Manufacturing overhead is applied with a debit to _
Work in process
The journal entry to record issuing both direct and indirect materials into production debits _
Work in process and Manufacturing overhead
Manufacturing overhead costs include ______.
factory maintenance wages factory rent factory utilities
Applied manufacturing overhead will most likely ______ actual manufacturing overhead.
not equal
A journal entry that debits Manufacturing overhead and credits Property taxes payable records the
recognition of accrued property taxes
Cost of goods manufactured of $410,000; beginning finished goods inventory of $110,000 and ending finished goods inventory of $125,000, calculate unadjusted cost of goods sold.
$395,000
Martin Industries had unadjusted cost of goods sold of $450,000. Overhead was underapplied by $30,000. Adjusted cost of goods sold is ______.
$480,000
Luver Corporation's Gross margin is $100,000, Cost of goods sold equals $70,000, and Selling and administrative expenses total $45,000. Net operating income is ______.
$55,000
A journal entry that debits Finished goods and credits Work in process records the ______.
completion of a job
Finished goods
consists of completed, unsold goods
The amount transferred from Work in Process to Finished Goods is
cost of goods manufactured
A journal entry that debits Work in process and Manufacturing overhead and credits Raw materials records the
issuance of materials
The schedule of cost of goods soldBlank 1Blank 1 sold , Incorrect Unavailable summarizes costs that remain in Work in process inventory and that have been transferred from Work in process to Finished goods inventory.
manufactured
When labor costs are incurred, _________ labor costs are added directly to the Work in Process account.
only direct
Cost of goods manufactured is the
sum of all jobs transferred from Work in process to Finished goods
The journal entry to record the purchase of materials credits
accounts payable
Cost of goods manufactured
includes the manufacturing costs of goods finished during the period
Costs of partially completed units are accounted for in
work in progress
Labor costs charged to Manufacturing Overhead represent ______ labor costs.
indirect
Cost of goods manufactured is the ______.
sum of all jobs transferred from Work in process to Finished goods
Which of the following is a clearing account?
Manufacturing overhead
George Corporation recognized $1,000 of accrued property taxes on its manufacturing facility. The journal entry to record this debits
Manufacturing overhead $1,000 and credits Property taxes payable $1,000
Which of the following statements are true?
Raw materials inventory represents the cost of materials not yet used in production. When materials are purchased they are recorded in the Raw materials inventory account.
The Manufacturing Overhead account is debited when
actual overhead costs are incurred
Overhead is overapplied if ______.
actual overhead is less than applied overhead
To calculate the adjusted cost of goods sold ______.
add underapplied overhead to or subtract overapplied overhead from unadjusted cost of goods sold
A journal entry debiting Salaries expense and crediting Salaries and wages payable could record ______.
administrative salaries
Job #4260 consisted of 1,000 units at a total cost of $200,000. The cost transferred to Cost of Goods Sold for the sale of 600 of the units is ______.
$120,000
Raw materials inventory was $5,000 at the beginning of the year and $12,000 at the end of the year. During the year, a total of $27,000 in raw materials were purchased, including $4,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period.
$16,000
What side of the Manufacturing overhead account is applied manufacturing overhead entered on?
Always the credit side
The journal entry to record depreciation on office equipment debits ______.
Depreciation expense and credits Accumulated depreciation
True or false: The transfer of costs from one inventory account to the next parallels the physical transfer of goods from one inventory to the next.
True
he journal entry to record $10,000 in manufacturing overhead applied to Job #40 debits
Work in process $10,000 and credits Manufacturing overhead $10,000
The journal entry to record selling and administrative salaries debits ______.
an expense account and credits Cash or a liability
To calculate total manufacturing costs, add direct materials, direct labor and ______.
applied manufacturing overhead
Work in Process consists of
applied manufacturing overhead actual direct materials cost actual direct labor cost
If overapplied overhead is closed out to Cost of goods sold, the Cost of goods sold account will be ______.
decreased
A journal entry that debits Depreciation expense and credits Accumulated depreciation records
depreciation on office equipment
A journal entry that debits Manufacturing overhead and credits Accounts payable would not be used to record
direct labor costs
A journal entry that debits Manufacturing overhead and credits Accounts payable could be made to record
factory utilities expense rent expense on factory equipment
Completed units that have not yet been sold are found in ------ inventory
finished goods
Selling and administrative costs incurred are treated as
period expenses
A journal entry that debits Raw Materials and credits Accounts Payable is recording the
purchase of materials
Any purchased materials that will go into the finished product are first recorded in the ------ inventory account
raw materials
The journal entry to record the purchase of materials debits
raw materials
When calculating the cost of direct materials on the schedule of cost of goods manufactured, the cost of indirect materials is ______.
subtracted from raw materials used in production
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