Managerial Accounting Chapter three

the ____ (debit/credit_ side of the manufacturing overhead account is always used to record manufacturing overhead applied to producation and the _____ (debit/credit) is always

credit, debit

underapplied or overapplied overhead is the

difference between overhead applied to work in process and actual overhead

unadjusted cost of goods sold is calculated by subtracting

ending finished goods inventory from goods available for sale

a predetermined overhead rate is calculated by dividing the ____ total manufacturing overhead by the ___ total amount of the allocation base

estimated; estimated

when a job is completed, its cost are transferred into

finished goods

completed units that have not yet been sold are found in

finished goods inventory

the costs 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 more accurate allocation of overapplied overhead includes entries to

manufacturing overhead; finished goods; work in process; cost of goods sold

Any purchased materials that will go into the finished product are first recorded in the ______ inventory account

raw materials

Jonas corporation used 20,000 in direct materials, incurred 40,000 in direct labor costs, and applied 30,000 of manu overhead to jobs thisperiod. no jobes were incompte at the beggining 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?

Cost of goods manufactured= (20,000 +40,000 +30,000)/0=25,000=65000

to calculate drect marerials on the schedule of cost of goods manufactered, add purchases to begining raw materials inventory and subtract

- ending raw materials inventory and indirect materials used

A journal entry that debits Manufacturing Overhead and credits accounts payable could be made to record

- factory expense on factory equipment - factory utilities expense

When labor costs are incurred, ___ are added directly to the work in process account

- only direct labor costs

which of the following costs are charged directly to the income statement

- sales/admin expense -COGS - Sales

Manufactering overhead costs include

-factory insurance - the factory supervisors salary

When calculating the cost of direct materials on the schedule of costs of goods manufactured, the cost of indirect material is

-subtract from raw materials used in production

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

450,000+30,000=480,000

Given the following calculate total manufacturing costs Direct materials cost: 62,000 direct labor costs: 78,000 manufacturing overhead applied:46,000 actual manufacturing overhead: 51,000 beginning work in process inventory:32000 ending work in process inventory:35,000

Total manufacturing costs = direct material cost + direct labor cost + manufacturing overhead costs 62,000 + 78,000 + 46,000 = 186,00

actual overhead costs may not be proportional to the actual amount of the allocation based used because:

Overhead spending may not be under control -Many actual overhead costs are fixed

When only a portion of units involved in a job are sold, what accounting entry occurs? a. Unsold units are transferred to another job b. The entire cost of the job is transferred from finished goods to cost of goods sold c. The cost is held in the finished goods account until all units involved in the job are sold d. The unit product cost is used to calculate the amount that will be transferred from finished goods to cost of goods sold

d. The unit product cost is used to calculate the amount that will be transferred from finished goods to cost of goods sold