Managerial Ch 3

Completed units that have not yet been sold are found in ________ _______ inventory.

Finished Goods

When a job is completed, its costs are transferred into ________.

Finished Goods

Which of the following would not be charged to the Manufacturing overhead account? - Factory rent - Supervisor's salary - Depreciation on factory equipment - Non manufacturing costs

Non manufacturing costs

Any purchased materials that will go into the finished products are first recorded in the ___________ ___________ inventory account.

Raw Material

The journal entry to record issuing materials to be used in production credits ________.

Raw Materials

T/F? The transfer of costs from one inventory account to the next parallels the physical transfer of goods from one inventory to the next.

True

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

The journal entry to record the purchase of materials credits ________.

accounts payable

Work in Process consists of ______.

actual direct materials cost, applied manufacturing overhead, actual direct labor cost

A journal entry that debits Work in Process and credits Manufacturing overhead is recording the ________.

application of manufacturing overhead costs

Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account ________.

as they are incurred

Finished goods ______.

consists of completed, unsold goods

Unadjusted cost of goods is calculated by subtracting _________.

ending finished goods inventory from the sum of beginning finished goods inventory and cost of goods manufactured

To calculate direct materials on the schedule of cost of goods manufactured, add purchases to beginning raw materials inventory and subtract ________.

ending raw materials inventory and indirect materials used

Selling and administrative costs first appear on the _________.

income statement

Labor costs charged to Manufacturing Overhead represents _______ labor costs.

indirect

The schedule of cost of goods ___________ summarizes costs that remain in Work in process inventory and that have been transferred from Work in process to Finished goods inventory.

manufactured OR produced

The cost of goods ____________ is the sum of all amounts transferred from Work in process to Finished goods during a period.

manufactured, completed, produced, OR finished

Manufacturing overhead consists of all ________.

manufacturing costs other than direct labor and direct materials

Gross margin minus selling and administrative expenses equals _________.

net operating income

When labor costs are incurred, _______ labor costs are added directly to the Work in Process account.

only direct

The journal entry that debits Raw Material and credits Accounts Payable is recording the _____.

purchase of materials

The journal entry to record the purchase of materials debits _______.

raw materials

The schedule of cost of goods ______ summarizes the portions of those costs that remain in ending Finished Goods inventory and that are transferred out of Finished Goods into Cost of Goods Sold.

sold

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

Cost of goods manufactured is the ___________.

sum of all jobs transferred from Work in process to Finished goods

Cost of goods manufactured is the _____________.

sum of all jobs transferred from Work in process to Finished goods

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

Units of product that are only partially complete are contained in ___________ _______ process inventory.

work in

Costs of partially completed units are accounted for in __________.

work in process

Which of the following statements are true? - When materials are purchased they are recorded by the Raw Materials inventory account - Raw Materials inventory represents the cost of materials not yet used in production - Raw Materials inventory only includes the cost of direct materials - Direct labor costs flow through the Raw Materials inventory account

- When materials are purchased they are recorded by the Raw Materials inventory account - Raw Materials inventory represents the cost of materials not yet used in production

A journal entry that debits Manufacturing overhead and credits Accounts payable could be made to record ______.

- rent expense on factory equipment - factory utilities expense