ACG chp. 3

All of the following are product costs except ________.

sales commissions

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.

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 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 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.

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

do not flow through inventories on the balance sheet