ACCT CH 3
Labor costs charged to Manufacturing Overhead represent ______ labor costs.
indirect
A credit balance in the Manufacturing Overhead account means overhead was
overapplied
Selling and administrative costs incurred are treated as ______.
period expenses
A journal entry that debits Raw Materials and credits Accounts Payable is recording the
purchase of materials
Any purchased materials that will go into the finished product are first recorded in _______ ________ inventory account.
raw materials
t or f? when materials are purchased they are recorded in the raw materials inventory account
t
Which of the statements regarding closing out over or underapplied overhead is correct?
Closing to Cost of goods sold is simpler, and allocating is more accurate.
Underapplied or overapplied manufacturing overhead can be disposed of by closing it to
Cost of goods sold or allocating it to Work in process, Finished goods, and Cost of goods sold
The journal entry to record accrued property taxes for a factory building debits ______.
debits MOH and credits property tax payable
when a job is complete, its costs are transfered to
finished goods
When labor costs are incurred, _________ labor costs are added directly to the Work in Process account.
only direct
A journal entry that debits Manufacturing overhead and credits Property taxes payable records the ______
recognition of accrued property taxes
Which of the following costs are charged directly to the income statement? selling costs direct labor direct materials administration costs MOH
selling costs admin costs
Cost of goods manufactured is the ______.
sum of all jobs transferred from Work in process to Finished goods
t or f direct labor costs flow through the raw material inventory account
f
A journal entry that debits Manufacturing overhead and credits Accounts payable would not be used to record ______. a. miscelanious factory overhead costs b. direct labor costs c. rent on factory equipment d. factory utilities costs
direct labor costs
To calculate direct materials on the schedule of cost of goods manufactured, add purchases to beginning raw materials inventory and subtract ______.
ending raw materials inventory and Indirect materials used
manufacturing overhead costs include (2) - factory supervisors salary - direct materials -factory insurance -ceo salary -office equipment
factory supervisors salary factory insurance
If a company incurs $2,000 of factory rent, $1,000 of factory utilities, and $5,000 of miscellaneous factory costs, the journal entry to record these transactions would be to debit
manufacturing overhead $8000 and credit accounts payable $8000
Units of product that are only partially complete are contained in _____ _____ _____ inventory.
work in process
When a job is completed, the job costs are transferred OUT OF
work in process
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
Raw materials inventory was $5,000 at the beginning of the year and $12,000 at the end of the year. During the year, a total of $27,000 in raw materials were purchased, including $4,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period.
16,000
Luver Corporation's Gross margin is $100,000, Cost of goods sold equals $70,000, and Selling and administrative expenses total $45,000. Net operating income is ______.
55,000
George Corporation recognized $1,000 of accrued property taxes on its manufacturing facility. The journal entry to record this debits ______.
Manufacturing overhead $1,000 and credits Property taxes payable $1,000
overhead is underapplied if
actual overhead is less than applied overhead
overhead is underapplied if
actual overhead is more than applied overhead
A journal entry debiting Salaries expense and crediting Salaries and wages payable could record ______.
admin salaries
manufacturing overhead cost include: (3 examples)
all costs other than direct material and direct labor examples: factory rent, factory utilities, factory maintenance wages
The more accurate method of closing out the balance in Manufacturing overhead is
allocating it among Work in process, Finished goods, and Cost of goods sold
What side of the Manufacturing overhead account is applied manufacturing overhead entered on?
always the credit side
The journal entry to record selling and administrative salaries debits ______.
an expense account and credits cash or a liability
a journal entry that debits Work in process and credits Manufacturing overhead is recording the
application of manufacturing overhead costs
When only a portion of the units involved in a job are sold, the ______
unit product cost is used to calculate the amount transferred from finished goods to cost of goods sold
manufacturing overhead applied to production is always recorded on the ____________ side of manufacturing overhead account and the _____________ side is always used to record the actual manufacturing cost
credit; debit
Any purchased materials that will go into the finished product are first recorded in the __________ __________ inventory account
raw materials
t or f raw materials inventory represent the cost of materials not yet in production
t
Manufacturing overhead is applied with a debit to ______.
work in process