Chapter 3. Job-Order Costing: Cost Flows and External Reporting

calculate total manufacturing costs: Direct materials cost: $62,000 Direct labor cost: $78,000 Manufacturing overhead applied: $46,000 Actual manufacturing overhead: $51,000 Beginning Work in process inventory: $32,000 Ending Work in process inventory: $35,000

$186,000

Cost of goods manufactured of $234,000; beginning finished goods inventory of $18,000; and ending finished goods inventory of $24,000, calculate unadjusted cost of goods sold.

$228,000

Given the following, calculate total manufacturing costs: Direct materials: $40,000; Direct labor: $100,000; Manufacturing overhead applied: $120,000; Beginning Work in process inventory: $30,000; Ending Work in process inventory: $12,000

$260,000

Manufacturing overhead is applied with a debit to _

Work in process

The journal entry to record issuing both direct and indirect materials into production debits _

Work in process and Manufacturing overhead

Manufacturing overhead costs include ______.

factory maintenance wages factory rent factory utilities

Applied manufacturing overhead will most likely ______ actual manufacturing overhead.

not equal

A journal entry that debits Manufacturing overhead and credits Property taxes payable records the

recognition of accrued property taxes

Cost of goods manufactured of $410,000; beginning finished goods inventory of $110,000 and ending finished goods inventory of $125,000, calculate unadjusted cost of goods sold.

$395,000

Martin Industries had unadjusted cost of goods sold of $450,000. Overhead was underapplied by $30,000. Adjusted cost of goods sold is ______.

$480,000

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

A journal entry that debits Finished goods and credits Work in process records the ______.

completion of a job

Finished goods

consists of completed, unsold goods

The amount transferred from Work in Process to Finished Goods is

cost of goods manufactured

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

issuance of materials

The schedule of cost of goods soldBlank 1Blank 1 sold , Incorrect Unavailable summarizes costs that remain in Work in process inventory and that have been transferred from Work in process to Finished goods inventory.

manufactured

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

only direct

Cost of goods manufactured is the

sum of all jobs transferred from Work in process to Finished goods

The journal entry to record the purchase of materials credits

accounts payable

Cost of goods manufactured

includes the manufacturing costs of goods finished during the period

Costs of partially completed units are accounted for in

work in progress

Labor costs charged to Manufacturing Overhead represent ______ labor costs.

indirect

Cost of goods manufactured is the ______.

sum of all jobs transferred from Work in process to Finished goods

Which of the following is a clearing account?

Manufacturing overhead

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

Which of the following statements are true?

Raw materials inventory represents the cost of materials not yet used in production. When materials are purchased they are recorded in the Raw materials inventory account.

The Manufacturing Overhead account is debited when

actual overhead costs are incurred

Overhead is overapplied if ______.

actual overhead is less than applied overhead

To calculate the adjusted cost of goods sold ______.

add underapplied overhead to or subtract overapplied overhead from unadjusted cost of goods sold

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

administrative salaries

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

What side of the Manufacturing overhead account is applied manufacturing overhead entered on?

Always the credit side

The journal entry to record depreciation on office equipment debits ______.

Depreciation expense and credits Accumulated depreciation

True or false: The transfer of costs from one inventory account to the next parallels the physical transfer of goods from one inventory to the next.

True

he journal entry to record $10,000 in manufacturing overhead applied to Job #40 debits

Work in process $10,000 and credits Manufacturing overhead $10,000

The journal entry to record selling and administrative salaries debits ______.

an expense account and credits Cash or a liability

To calculate total manufacturing costs, add direct materials, direct labor and ______.

applied manufacturing overhead

Work in Process consists of

applied manufacturing overhead actual direct materials cost actual direct labor cost

If overapplied overhead is closed out to Cost of goods sold, the Cost of goods sold account will be ______.

decreased

A journal entry that debits Depreciation expense and credits Accumulated depreciation records

depreciation on office equipment

A journal entry that debits Manufacturing overhead and credits Accounts payable would not be used to record

direct labor costs

A journal entry that debits Manufacturing overhead and credits Accounts payable could be made to record

factory utilities expense rent expense on factory equipment

Completed units that have not yet been sold are found in ------ inventory

finished goods

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 the ------ inventory account

raw materials

The journal entry to record the purchase of materials debits

raw materials

When calculating the cost of direct materials on the schedule of cost of goods manufactured, the cost of indirect materials is ______.

subtracted from raw materials used in production

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