BUS 230B Chapter 3 Lecture

If the Manufacturing Overhead account is closed to Cost of Goods Sold, the related entry will ________.

decrease the cost of goods sold by $30,000

All of the following are product costs except ________.

sales commission

Which of the following occurs when finished jobs are shipped to customers?

Debit to Cost of Goods Sold. Correct

Zimmer, Inc. started the month of January with beginning finished goods inventory of $20,000. The cost of goods manufactured during the month was $120,000 and the ending finished goods inventory was $50,000. What is the unadjusted cost of goods sold for January?

$90,000

What is the balance of the Manufacturing Overhead account and is overhead underapplied or overapplied at the end of the year?

Credit of $30,000,overapplied.

If the Manufacturing Overhead account is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold, the related entry will include a ________.

credit to Cost of Goods Sold for $12,000

Which of the following occurs when manufacturing overhead is applied to Work in Process?

Credit to Manufacturing Overhead. Correct

Which of the following best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as direct and indirect materials in production?

Debit Work in Process, debit Manufacturing Overhead, and credit Raw Materials

Which of the following best describes the journal entry to record the use of direct and indirect labor in production?

Debit Work in Process, debit Manufacturing Overhead, and credit Salaries and Wages Payable

When companies incur selling and administrative costs, those costs ________.

do not flow through the three inventory accounts

Which of the following occurs when a job has been completed and transferred to the finished goods warehouse?

Credit to Work in Process.