ACCT 212
A Schedule of Cost of Goods Manufactured includes all of the following costs:
factory overhead applied direct labor used work in process inventory direct materials used
Both service companies and manufacturing companies have: (Check all that apply).
overhead direct labor
A tax accounting firm pays tax preparers $44 per hour. The firm has a predetermined overhead rate of $24 per labor hour. The Jones tax return required 2.5 hours to complete. The total cost of this job is
$170
A consulting firm has a predetermined overhead rate of $120 per labor hour. The Smith job required 5 hours to compete. The overhead cost applied to this job is $
$600
Match the following activities to their effect on the general ledger accounts.
Allocate indirect labor - Credit Factory Wages Payable Pay factory property tax - Debit Factory Overhead Purchase materials - Debit Raw Materials Inventory Use direct materials - Credit Raw Materials Inventory Complete job - Debit Finished Goods Inventory Sold job - Credit Finished Goods Inventory
Factory overhead is a _____ account.
temporary
A company incurs factory overhead costs of $1,200 and applied $1,500. If the difference is considered immaterial, then the: (Check all that apply.)
Factory Overhead account has a credit balance of $300 before adjusting. adjusting entry will require a credit to Cost of Goods Sold.
If the factory overhead is overapplied, then: (Check all that apply.)
applied overhead costs > actual overhead costs. the Factory Overhead account has a credit balance.
A Schedule of Cost of Goods Manufactured includes all of the following costs:
direct labor used factory overhead applied direct materials used work in process inventory
Match the following activities to their effect on the general ledger accounts.
Allocate overhead costs to jobs - Credit Factory Overhead Pay factory utilities - Debit Factory Overhead Purchase indirect materials - Debit Raw Materials Inventory Use indirect materials - Credit Raw Materials Inventory Direct labor used - Debit Work in Process Inventory