LearnSmart Chapter 2A
How are manufacturing costs that CANNOT be traced to a particular product assigned to products and services?
By averaging across time and across products
The value of work in process ending inventory is calculated by:
Summing the costs of all started but unfinished jobs
the purpose of the MOH account is to
accumulate all MOH costs as they occur during a period
Cost of goods manufactured includes
all manufacturing costs of goods finished during the period
A journal entry that debits MOH and credits Accounts Payable could NOT record the incurrence of:
direct labor costs The incurrence of direct labor costs should be recorded by debiting work in process account
the journal entry to record shippings goods to customers includes a credit to
finished goods
Job #345 consisted of 1,000 unites at a total cost of $200k. The cost transferred to COGS for the sale of 600 of the units is
$200k/1,000 * 600 = $120k
Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account:
As they are incurred
The beginning balance on a job cost sheet represents the:
Cost of work done in prior periods A job cost sheet is used for a job in progress. The cost of completed, unsold jobs is in Finished Goods.
The journal entry to record depreciation on factory equipment:
Debit: MOH Credit: Accumulated Depreciation
in june $3k of prepaid factory insurance expired. The journal entry to record this event would be
Debit: MOH Credit: Prepaid insurance
a company requisitioned $40k in direct materials and $30k in indirect materials from the storeroom to be used in production. The journal entry to record this transaction would be
Debit: Work in process $40k MOH $30k Credit: Raw materials $70k
Completed units that have not yet been sold are found in _____ _____ inventory
Finished Goods
CompanyX just completed a job that cost $14K in direct materials, $12K in direct labor, and $8K in applied MOH. The journal entry to record completion of the job would be
Finished goods, including direct materials, direct labor and MOH should be $34K Debit: finished goods $34K Credit: work in process $34K
What finds of costs are assigned to units of production in absorption costing? name 2
Fixed manufacturing costs Variable manufacturing costs
Which method is used by companies that make many different products each period?
Job-ordering costing
What account is debited to record indirect labor costs?
MOH
A company insured $10K in direct labor costs and $8K in indirect labor costs. The journal entry to record this transaction is:
Work in process $10k and MOH $8K and credits salaries Salaries and wages payable $18K
A journal entry that debits MOH and credits property taxes payable records the
application of property taxes
when a job is completed which account is debited
finished goods
The journal entry that debits Work in Process and Manufacturing overhead and credits Salaries and Wages Payable is recording:
direct and indirect labor costs
the cost of jobs still unfinished at the end of a period are included in
ending work in process inventory
A journal entry that debits MOH and credits accounts payable could be made to record
factory utilities expense
a journal entry that debits raw materials and credits account payable is recording the
purchase of materials
Any purchased materials that will go into the finished products are first recorded in the _____ _____ inventory account
raw materials
Define: Cost of Goods Manufactured
sum of all jobs transferred from work in process to finished goods
All job costs will be recorded by the time
the job is completed
Define: Cost of Goods Manufactured
the sum of all amounts transferred from work in process to finished goods during a period (COGS are those units transferred out of finished goods)
which accounts are debited in the journal entry to record manufacturing labor costs
work in process and MOH