act 240 chapter 3

The amount transferred from Work in Process to Finished Goods is

Cost of goods manufactured

completed units that have not been sold are found in ________ __________ inventory

finished goods

when a job is completed, which account is debited?

finished goods

a journal entry debiting cost of goods sold and crediting finished goos is made when

goods are sold

the journal entry to record accrued property taxes for a factory building debits

manufacturing overhead and credits property taxes payable

when labor costs are incurred, _________ are added directly to the work in process account

only direct labor costs

a journal entry that debits manufacturing overhead and credits property taxes payable records the

recognition of accrued property taxes

the value of work in process is equal to

the cost of all unfinished jobs

overhead is undersupplied if ________.

actual overhead is more than applied overhead

over applied or underapplied overhead is the difference between

actual total overhead and total overhead applied

to calculate the adjusted cost of goods sold :

add the underapplied overhead to or subtract overapplied overhead from unadjusted cost of goods sold

applied manufacturing overhead will most likely ______ actual manufacturing overhead

not equal

the difference between overhead applied to work in process and actual overhead is

overapplied and underapplied overhead

The journal entry to record the purchase of materials debits

raw materials

which of the following costs are charged directly to the income statement?

selling costs administrative costs

gemini had sales of $50000, cost of goods sold of $20000 and selling and administrative expenses of $25000. Gross margin is

$30000 gross margin = $50000- $20000+$30000

job #4260 consisted of 1000 units at a total cost of $200000. the cost transferred to cost of goods sold for the sale of 600 units is

2000000/1000 x 600 = 120000

applied manufacturing overhead is entered on what side of the manufacturing overhead account

always in the credit side

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

raw materials is an ______ account

asset

which of the statements regarding closing out overapplied or undersupplied is correct?

closing to cost of goods sold is simpler, and allocating is more accurate

gross margin is calculated by subtracting ______ from _______

cost of goods sold; sales

a journal entry that debits manufacturing overhead and credits accumulated depreciation records

depreciation on factory equipment

to calculate a predetermined overhead rate, divide estimated manufacturing overhead by

estimated allocation base

labor costs charged to manufacturing overhead represent

indirect labor costs

the journal entry to record $20000 in depreciation on factory equipment is debit

manufacturing overhead $20000 and credit accumulated depreciation $20000

the journal entry to record the issuance of the direct materials into production debits

work in process

which account is debited to record direct labor costs?

work in process

the journal entry to record $10000in manufacturing overhead applied to job #40 debits

work in process $10000 and credits manufacturing overhead $10000

A company requisitioned $40000 in direct materials and $30000 in indirect materials from the storeroom to be used in production. The journal entry to record this transaction would debit:

work in process $40000, debit manufacturing overhead $30000 and credit raw materials $70000

When jobs are sold their costs are transferred out of :

Finished Goods

match each event int he process of accounting for manufacturing overhead with the appropriate entry

actual overhead is incurred - manufacturing overhead is debited overhead is applied to work in process - manufacturing overhead is credited the period ends - manufacturing overhead is closed