Chapter 7

The journal entry to record the transfer of inventory to finished goods includes a debit to Blank______. Multiple choice question. work-in-process inventory cost of goods sold finished goods inventory

Finished goods inventory.

Which of the following is NOT a component of the Work-in-Process Inventory account? Multiple choice question. Direct materials Finished goods Direct labor Manufacturing overhead

Finished goods. The cost in the Work-in Process Inventory account consists of Direct Materials, Direct Labor, and Manufacturing overhead.

The entry to record the direct labor incurred and assigned to a job includes a credit to Blank______. Multiple choice question. Manufacturing Overhead Wages Payable Work-in-Process Finished Goods

Wages Payable is credited and Work-In-Process is debited in the journal entry.

Direct materials, direct labor, and manufacturing overhead are components of the ____________-________-________ inventory account

Work-in-Process

The entry to record the direct labor incurred and assigned to a job includes a debit to Blank______. Multiple choice question. Work-in-Process Manufacturing Overhead Wages Payable Finished Goods

Work-in-Process This would be debited and the Wages Payable would be credited in the Journal entry.

The journal entry to record the sale of finished goods includes all of the following accounts except Blank______. Multiple choice question. Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Revenue

Work-in-Process Inventory

The journal entry to record the transfer of inventory to finished goods includes a credit to Blank______. Multiple choice question. Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold

Work-in-Process Inventory is credited and Finished Goods Inventory would be debited.

The journal entry to record the direct materials transferred to a job includes a debit to Blank______. Multiple choice question. Work-in-Process Inventory Materials Inventory Accounts Payable Manufacturing Overhead

Work-in-Process Inventory is debited once the direct materials is transferred to a job and will credit the Materials Inventory account.

The journal entry to record the applied manufacturing overhead cost includes a debit to Blank______. Multiple choice question. Work-in-Process Inventory Applied Manufacturing Overhead Estimated Manufacturing Overhead

Work-in-Process Inventory is debited and the Applied Manufacturing Overhead is credited.

An account in the general ledger that summarizes a set of subsidiary ledger accounts is a Blank______. Multiple choice question. job cost sheet parent account subsidiary lead control account

control account

An account in the general ledger that summarizes a set of subsidiary ledger accounts is a Blank______. Multiple choice question. subsidiary lead control account job cost sheet parent account

control account. Accounts Receivable account on the balance sheet is a control account, it supported by a subsidiary ledger account for each customer.

Debits to the Manufacturing Overhead Control are to record all of the following except Blank______. Multiple choice question. plant depreciation direct materials indirect materials

direct materials Manufacturing Overhead Control account summarizes Indirect materials, indirect labor and depreciation.

Materials, Work-in-Process, and Finished Goods are assets that are classified as__________- accounts.

inventory

A unit of a product that is easily distinguishable from other units is called a(n) ___________________.

job

Select all that apply The cost accounting system records and tracks the cost of a job using a Blank______. Multiple select question. subsidiary ledger account job cost sheet control account job cost record

job cost sheet, subsidiary ledger account, job cost record

Firms that produce jobs are often called job _________________ .

job shops

If actual overhead is $45,000 and applied overhead is $48,000, then overhead is ___________ . (Enter either overapplied or underapplied.)

overapplied

Job shops assign manufacturing overhead to jobs using a(n) ___________-_________rate.

predetermined-overhead

When applied overhead is more than actual overhead, the journal entry made at the end of the period Blank______ Cost of Goods Sold. Multiple choice question. reduces increases has no effect on

reduces Reason: Because too much was applied, the entry will credit Cost of Goods Sold, which reduces it.

The job cost sheet summarizes all of the following costs except Blank______. Multiple choice question. manufacturing overhead direct labor selling and administrative costs direct materials

selling and administrative costs

The journal entry to record the purchase of direct materials on account includes a credit to Blank______. Multiple choice question. Work-in-Process Inventory Materials Inventory Finished Goods Inventory Accounts Payable

Accounts Payable is credited and Materials Inventory is debited in the transaction.

Which of the following is NOT an inventory account? Multiple choice question. Work-in-process Materials Accounts payable Finished goods

Accounts payable. The three inventory accounts are Materials, Work-in Process, and Finished goods.

Which of the following is not a common event that leads to manufacturing overhead being recorded? Multiple choice question. Accumulating actual direct materials and direct labor costs. Preparing financial statements for which Work-in-Process Inventory needs to be assessed. Completing a job whose costs need to be recorded.

Accumulating actual direct materials and direct labor costs.

The journal entry to record the applied manufacturing overhead cost includes a credit to Blank______. Multiple choice question. Estimated Manufacturing Overhead Applied Manufacturing Overhead Work-in-Process Inventory

Applied Manufacturing Overhead would be credited and the Work-in Process Inventory would be debited because the job has started.

Which of the following is false regarding recording manufacturing overhead? Multiple choice question. Because manufacturing overhead is directly related to the completion of jobs, there is always a transaction that triggers a journal entry. Preparing financial statements for which Work-in-Process Inventory needs to be assessed is a common event that leads to manufacturing overhead being recorded. Completing a job whose costs need to be recorded is a common event that leads to manufacturing overhead being recorded.

Because manufacturing overhead is directly related to the completion of jobs, there is always a transaction that triggers a journal entry.

Select all that apply A predetermined overhead rate formula based on direct labor cost would include which of the following in its calculation? Multiple select question. Estimated manufacturing overhead Actual direct labor cost Estimated direct labor cost Actual manufacturing overhead

Estimated manufacturing overhead Estimated direct labor cost

A company applies overhead using a predetermined overhead rate based on direct labor cost. Given the following information, calculate the manufacturing overhead applied to Job 101. Estimated manufacturing overhead cost $300,000 Estimated direct labor cost $150,000 Actual direct labor cost for Job 101 $80,000 Multiple choice question. $100,000 $160,000 $150,000 $40,000

$160,000 Reason: ($300,000 ÷ $150,000) × $80,000 = $160,000

Anders Inc.'s predetermined overhead rate is 40% of direct labor cost. One of the jobs bid on and completed during the year estimated $10,000 of direct labor. The actual direct labor cost for the job was $12,000. Based on this, how much manufacturing overhead cost was applied to the job? Multiple choice question. $2,000 $4,000 $8,800 $4,800

$4,800 Reason: $12,000 × 40% = $4,800

The journal entry to record the direct materials transferred to a job includes a credit to Blank______. Multiple choice question. Finished Goods Inventory Manufacturing Overhead Work-in-Process Inventory Materials Inventory

Materials Inventory

The journal entry to record the purchase of direct materials on account includes a debit to Blank______. Multiple choice question. Finished Goods Inventory Materials Inventory Accounts Payable Work-in-Process Inventory

Materials Inventory The debited amount is not debited to work-in-process inventory because the materials have not been used just purchased.

The journal entry to record the direct materials transferred to a job includes a credit to Blank______. Multiple choice question. Materials Inventory Work-in-Process Inventory Manufacturing Overhead Finished Goods Inventory

Materials Inventory Would be credited because you are attaching it to the job and Work-in-Process Inventory is debited.