Chapter 3 Learn Smart
Jonas Corporation used $20,000 of direct materials, incurred $40,000 of direct labor cost, and applied $30,000 of manufacturing overhead to jobs this period. No jobs were incomplete at the beginning of the period, but at the end of the period, jobs with a total cost of $25,000 were unfinished. What was the cost of goods manufactured for this period?
$65,000
a journal entry that includes Manufacturing Overhead and Cost of Goods Sold is recorded to:
dispose of underapplied or over-applied overhead
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
- Factory insurance - The factory supervisor's salary
what methods can be used to dispose of underapplied or overapplied manufacturing overhead?
- closing it out to cost of goods sold -allocating it among work in process, finished goods, and cost of goods sold.
direct materials used for the period cost $66,000. Direct labor cost $80,000. Applied overhead was $60,000. Beginning work in process inventory was $27,000 and ending work in process inventory was $25,000. Calculate the cost of goods manufactured.
208,000
when overhead is underapplied, a ___ must be made to the manufacturing overhead account to close it out
credit
underapplied or overapplied overhead is the
difference between overhead applied to work in process and actual overhead
labor costs charged to manufacturing overhead represent
indirect labor costs
the difference between overhead applied to work in process and actual overhead is
overapplied or underapplied overhead
a journal entry that debits Raw Materials and credits Accounts Payable is recording the
purchase of materials
a journal entry that debits manufacturing overhead and credits property taxes payable records the
recognition of accrued property taxes
a journal entry that debits Manufacturing overhead and credits Accounts payable could be made to record:
rent expense on factory equipment factory utilities expense
net operating income is calculated by subtracting ___ from ____
selling and administrative expenses gross margin
units of product that are only partially complete are contained in the _____ _____ ____ Inventory
work in process
actual overhead costs may not be proportional to the actual amount of the allocation base used because
-many actual overhead costs are fixed -overhead spending may not be under control
raw materials is an ____ account
asset
when preparing financial statements in a job-order costing system, finished goods flow first to the ___ _____ and then to the ___ ____
balance sheet income statement
A journal entry that debits Manufacturing overhead and credits Prepaid insurance records the:
expiration of prepaid factory insurance
the journal entry to record a cash payment of $400 for insurance on administrative office equipment debits ___ and credits cash
insurance expense
the cost of goods __ is the sum of all amounts transferred from work in process to finished goods during a period
manufactured
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 a job is completed, the job costs are transferred out of:
work in process
Fila Inc, worked on 3 jobs this period: Job 14C, which cost $15,000 Job 23A, which cost $28,000 and Job 45B, which cost $23,000 At the end of the period, only Job 14C was still in process. The costs of goods manufactured this period is
51,000
Raw materials inventory was $27,000 at the beginning of the year and $25,000 at the end of the year. During the year, $100,000 in raw materials were purchased, including $28,000 of the indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period
74,000
the schedule of cost of goods ____ summarizes costs that remain in Work in process inventory and that have been transferred from Work in Process to Finished Goods Inventory
manufactured
when the allocation method is used to close out the underapplied or overapplied balance remaining in Manufacturing Overhead, which accounts are affected?
-work in process -finished goods -cost of goods sold
Milton Corporation sold goods costing $50,000 for $75,000. Journal entries to be made could include entries debiting:
Cost of Goods Sold for $50,000 and Accounts Recievable for $75,000
which are used to calculate cost of goods available for sale on the schedule of cost of goods sold?
beginning finished goods inventory, cost of goods manufactured
the journal entry to record the purchase of materials credits:
accounts payable
a journal entry that debits work in process and credits manufacturing overhead is recording the
application of manufacturing overhead costs
The ____ side of the manufacturing overhead account is always used to record manufacturing overhead applied to production and the ____ side is always used to record the actual manufacturing costs incurred
credit / debit
if overapplied overhead is closed out to Cost of Goods Sold, the Cost of Goods sold account will be [increased/decreased]
decreased