Ch 3 LearnSmart
A journal entry debiting Salaries and crediting Salaries and Wages Payable could record
Administrative salaries
What accounts are debited when goods are sold on account?
Cost of goods sold and Accounts receivable
When overhead is applied to Work in Process
Manufacturing overhead is credited
When actual manufacturing overhead is incurred
Manufacturing overhead is debited
Actual overhead costs may not be proportional to the actual amount of the allocation base used because
Overhead spending may not be under control Many actual overhead costs are fixed
The journal entry to record depreciation on office equipment debits is
Depreciation expense and credits Accumulated depreciation
When goods are sold on account, what accounts are credited?
Finished goods and Sales
The journal entry to record a cash payment of $400 for insurance on administrative office equipment credits cash and debits
Insurance expense
The ________ (debit/credit) side of the manufacturing overhead account is always used to record manufacturing overhead applied to production and the ______ (debit/credit) side is always used to record the actual manufacturing costs incurred
credit - debit
The difference between the entries to record depreciation on office equipment and depreciation on factory equipment is that one
debits Depreciation expense, while the other debits Manufacturing overhead
The difference between overhead applied to work in process and actual overhead is
overapplied or underapplied overhead
A journal entry that debits advertising expense and credits Cash would record the incurrence of a
selling cost
When the period ends
Manufacturing overhead is closed
A journal entry that debits Manufacturing overhead and credits Accounts payable could be made to record
Rent expense of factory equipment Factory utilities expense (depreciation on factory equipment goes to accumulated depreciation and purchase of indirect materials goes to Raw materials inventory)
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 a job is completed, which account is credited
Work in progress