Chapter 19 Accounting Objective
On June 1, Dalton Productions had beginning balances as shown in the T-accounts below. Raw Materials Inventory 10,000 Work-in-Process Inventory 20,000 Finished Goods Inventory 25,000 Manufacturing Overhead 41,000 During June, the following transactions took place: June 2: Issued $2,900 of direct materials and $200 of indirect materials to production. What was the balance in the Manufacturing Overhead account following this transaction
41,200 (add indirect to MO)
On June 1, Westbrook Productions had beginning balances as shown in the Tminusaccounts below. Raw Materials Inventory 10,000 WorkminusinminusProcess Inventory 20,000 Finished Goods Inventory 25,000 Manufacturing Overhead 41,000 During June, the following transactions took place: June 2: Issued $ 3 comma 300 of direct materials and $ 700 of indirect materials to production. June 13: Incurred $ 6 comma 100 of direct factory labor cost and $ 14 comma 600 of indirect factory labor cost. What was the balance in the Manufacturing Overhead account following these transactions?
56,300 (add all indirect to MO)
The predetermined overhead allocation rate is the rate used to ________.
Allocate estimated manufacturing overhead costs to jobs
Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?
Factory electricity costs
Accounting firms, building contractors, and healthcare providers use process costing
False
Manufacturing overhead is allocated by debiting the Finished Goods Inventory account.
False
The cost of indirect materials is transferred out of the Manufacturing Overhead account and accumulated in the Raw Materials Inventory account.
False
When raw materials are requisitioned for a job, the Raw Materials Inventory account is debited.
False
Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system.
False
The journal entry to record indirect labor costs incurred involves a debit to the ________.
Manufacturing Overhead Account
Uniq Works purchased raw materials amounting to $ 128 comma 000 on account and $ 18 comma 000 for cash. The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis. Which of the following journal entries correctly records this transaction?
Raw Materials Inventory 146 comma 000 Cash 18 comma 000 Accounts Payable 128 comma 000
A job order costing system is used by companies that manufacture batches of unique products or provide specialized services.a
True
Manufacturing Overhead is a temporary account used to accumulate indirect production costs during the accounting period.
True
Manufacturing overhead is allocated by debiting the Work-in-Process Inventory account and crediting the Manufacturing Overhead account.
True
The actual direct labor costs are assigned to individual jobs, and the actual direct labor cost is recorded with a debit to Work-in-process Inventory
True
The amount of taxes and insurance incurred and paid for the plant of a manufacturing company should be debited to the Manufacturing Overhead account.
True
When direct materials are received on the production floor, they are recorded on the job cost record.
True
The journal entry to record direct labor costs actually incurred involves a debit to the ________.
Work in process
Which of the following accounts would be debited in the journal entry to record the issuance of direct materials
Work in process
Manufacturing Overhead is a temporary account used to ________ indirect production costs during the accounting period.
accumulate
Which of the following is the correct order of the four steps of tracking product costs?
accumulate, assign, allocate, adjust
The entry to record the purchase of direct materials on account would include a_
debit to raw materials inventory account
Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.
false
The predetermined overhead allocation rate is calculated by dividing ________.
the estimated overhead costs by total estimated quantity of the overhead allocation base
The journal entry to issue $500 of direct materials and $40 of indirect materials to production involves debit(s) to the ________.
Work-in-Process Inventory account for $500 and Manufacturing Overhead account for $40