chp 3
in the normal costing system, work in process is debited for:
- manufacturing overhead applied -direct materials
the journal entry to record the purchase of materials credits _____
-accounts payable
what methods can be used to dispose of underapplied or overapplied manufacturing overhead?
-close it to cogs -allocation it to WIP, finished goods, and COGS
what accounts are debited when goods are sold on account
-cogs -accounts receivable
which of the following are used to calculate costs of goods available for sale on the schedule of cost of goods sold?
-cogs manufactured -beg. finished goods inventory
the ____ side of 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 incurr
-credit -debit
A journal entry that debits Manufacturing Overhead and credits accumulated depreciation records ______
-depreciation on factory equipment
A journal entry that debits Manufacturing Overhead and credits accounts payable could be made to record
-rent expense on factory equipment -factory utilities expense
which are the following costs are charged directly to the income statement
-selling costs -administrative costs
which of the following is a clearing account
manufacturing overhead
a credit balance in the manufacturing overhead account means overhead was ____
overapplied
finished goods
units of product that have been completed but not yet sold to customers
costs of partially completed units are accounted for in _____
work in process
the journal entry to record the issuance of direct materials into production debits ____
work in process
units of product that are only partially complete are contained in _____ _______ _____ inventory
work in process
The formula for a predetermined overhead rate it _____
estimated manufacturing overhead cost divided by estimated allocation base
when jobs are sold their costs are transferred out of ____
finished goods
any purchased materials that will go into the finished product are first recorded in the _______ _______ inventory account
raw materials
which of the following costs are classified as manufacturing overhead
-factory utilities - factory maintenance wages -factory rent
Labor costs charged to Manufacturing Overhead represent:
-indirect labor costs
what account is debited to record indirect labor costs
-manufacturing overhead
the journal entry to record depreciation on factory equipment debits _____
-manufacturing overhead and credits accumulated depreciation
the difference between overhead applied to work in process and actual overhead is ____
overapplied or underapplied overhead
which account is debited to record direct labor costs
work in process
the journal entry to record accrued property taxes for a factory building debits ____
-manufacturing overhead and credits property taxes payable
when the allocation method is used to close out the under-applied or over-applied balance remaining in manufacturing overhead, which accounts are affected?
-work in process -finished goods -cogs
when labor costs are incurred, _____ are added to the work in process account
only direct labor costs
Manufacturing Overhead Costs include ____
- factory supervisor's salary - factory insurance
Total Manufacturing Costs equation
Direct Labor + Direct Materials + Manufacturing Overhead
Cost of Goods Manufactured
includes the manufacturing costs associated with the goods that were finished during the period
cost of goods manufactured is the ____
sum of all jobs transferred from work in process to finished goods
unadjusted cost of goods sold equation
beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory
when overhead is underapplied a _____ must be made to the manufacturing overhead account to close it out
credit
journal entry to record depreciation
debit depreciation expense, credit accumulated depreciation
Calculate predetermined overhead rate
estimated manufacturing overhead divided by estimated allocation base