Managerial Accounting Learn Smart Journal Entries

Any purchased materials that will go into the finished product are first recorded in the ............ Inventory account.

Raw Materials

When a job is completed, which account is credited?

Work in process

$40000 in direct materials and $30000 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

What accounts are debited when goods are sold on account?

Cost of Goods sold and Accounts Receivable

The journal entry to record depreciation on factory equipment debits:

Manufacturing Overhead and credits Accumulated depreciation

Which of the following are used to calculate Cost of goods available for sale on the schedule of cost of goods sold?

Beginning finished goods inventory, Cost of goods manufactured