ACCT 3203 - Exam 1

Completed units that have not been yet sold are found in ___________ _______ inventory.

Finished Goods

When jobs are sold their costs are transferred out of:

Finished Goods

The journal entry to record $20,000 in depreciation on factory equipment is debit _________.

Manufacturing Overhead $20,000 and credit Accumulated Depreciation $20,000

The formula for applying overhead to a specific job is:

Predetermined overhead rate x Amount of allocation base incurred by job

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

Raw Materials

Units of products that are only partially complete are contained in the _______ ___ _______ inventory.

Work In Process

When a job is completed, which account is credited?

Work in process

George Corporation recognized $1,000 of accrued property taxes on its manufacturing facility. The journal entry to record this would debit:

Manufacturing overhead $1,000 and credit Property taxes payable $1,000

When labor costs are incurred, ________ are added directly to the Work in Process account.

Only direct labor costs

Job #4260 consisted of 1,000 units at a total cost of $200,000. The cost transferred to Cost of Goods Sold for the sale of 600 of the units is:

$120,000 $200,000/1,000 x 600= $120,000

A journal entry debiting Salaries expense and crediting Salaries and wages payable could record ___________.

Administrative Salaries

A journal entry that debits Work in process and credits Manufacturing overhead is recording the:

Application of manufacturing overhead costs

The journal entry that debits Work in Process and Manufacturing overhead and credits Salaries and Wages Payable is recording:

Direct and indirect labor costs

The formula for a predetermined overhead rate is:

Estimated manufacturing overhead cost divided by estimated allocation base

Cost of goods manufactured:

Includes the manufacturing costs of goods finished during the period

The journal entry to record a cash payment of $400 for insurance on administrative office equipment debits ________ and credits cash.

Insurance expense

A journal entry that debits Work in process and Manufacturing overhead and credits Raw materials records the:

Issuance of materials