bus 215 ch 3
cost of goods manufactured includes
the manufacturing costs of goods finished during the period
true or false: raw materials inventory include any materials that are used in production both direct and indirect
true
the journal entry to record the purchase of materials credits
accounts payable
overhead is undersupplied if
actual overhead is more than applied overhead
overapplied or underapplied overhead is the difference between
actual total overhead and total overhead applied
overapplied or undersupplied overhead is the difference between
actual total overhead and total overhead applied
applied manufacturing overhead is entered on what side of the manufacturing overhead account
always the credit side
raw materials inventory is an
asset
underapplied or overapplied manufacturing overhead can be disposed of by
closing it out to cost of goods sold or allocating it among work in process, finished goods and cost of goods sold
finished goods consist of
completed, unsold goods
what 2 accounts are involved when undersupplied or overapplied overhead is closed out using the simpler method?
cost of goods sold and manufacturing overhead
if overapplied overhead is closed out to cost of goods sold, the cost of goods sold account will be
decreased
the journal entry to record depreciation on office equipment debits
depreciation expense and credits accumulated depreciation
a journal entry that includes manufacturing overhead and cost of goods sold is recorded to
dispose of undersupplied or overapplied overhead
a journal entry that involved manufacturing overhead, work in process, finished goods, and cost of goods sold is recorded to
dispose of undersupplied or overapplied overhead
true or false: period costs flow from finished goods to cost of goods sold
false
when the jobs are sold their costs are transferred out of
finished goods
labor costs charged to manufacturing overhead represent
indirect labor costs
the journal entry to record a cash payment of $400 for insurance on administrative office equipment debits _______ and credits cash
insurance expense
which of the following is a clearing account
manufacturing overhead
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 journal entry to record accord property taxes for a factory building debits
manufacturing overhead and credits property taxes payable
overhead is applied to work in process
manufacturing overhead is credited
the period ends
manufacturing overhead is credited
actual overhead is incurred
manufacturing overhead is debited
the journal entry to record the purchase of materials debits
raw materials
any purchased materials that will go into the finished product are first recorded in the
raw materials inventory account
a journal entry that debits advertising expense and credits cash would record the incurrence of a
selling cost
the value of work in process is equal to
the cost of all unfinished jobs
applied manufacturing overhead is entered on what side of the manufacturing overhead account?
always the credit side
what side of the manufacturing overhead account is actual manufacturing overhead entered on?
always the debit side
a journal entry that debits work in process and credits manufacturing overhead is recording the
application of manufacturing overhead costs
a predetermined overhead rate is calculated by dividing the _______ total manufacturing overhead by the ______ total amount of the allocation base
estimated; estimated
manufacturing overhead is applied with a debit to
work in process
which account(s) are debited in the journal entry to record manufacturing labor costs
work in process and manufacturing overhead
applied manufacturing overhead will most likely ______ actual manufacturing overhead
not equal
units of product that are only partially complete are contained in the
work in process inventory
the cost of jobs still unfinished at the end of a period are included in
ending work in process inventory
true or false: underapplied or overapplied overhead occurs because overhead is applied to jobs using a predetermined rate based on estimates of costs and activity levels
true