mgt 11b ch 3 learnsmart

any purchased materials that will go into the finished product are first recorded in the ________ _________ inventory account

raw materials

a journal entry debiting salaries expense and crediting salaries and wages payable could record:

administrative salary costs

applied manufacturing overhead is entered on what side of the manufacturing overhead account?

always the credit side

manufacturing overhead costs include:

factory supervisor's salary; factory insurance

schedule cost of goods sold

summarizes costs that remain in finished goods inventory and that have been transferred to cost of goods sold

What 2 accounts are involved when underapplied or overapplied overhead is closed out using the simpler method?

Cost of goods sold and manufacturing overhead

a journal entry that debits manufacturing overhead and credits prepaid insurance records the

expiration of prepaid factory insurance

cost of jobs still unfinished at the end of a period are included in:

ending work in process inventory

actual manufacturing overhead costs are recorded in the manufacturing overhead account

aS they are incurred

overhead is underapplied if

actual overhead is more than applied overhead

overapplied or underapplied overhead is the difference between

actual total overhead and total overhead applied

actual manufacturing overhead is entered on?

always the debit side

the difference between the entries to record depreciation on office equipment and depreciation on factory equipment is that one:

debits depreciation expense, while the other debits manufacturing overhead

George corporation recognized $1,000 of accrued property taxes on its manufacturing facility. The journal entry to record this would debit:

manufacturing overhead $1,000 and credit Property taxes payable $1,000

cost of goods manufactured

sum of all amounts transferred from Work in process to finished goods during a period

the value of work in process is equal to

cost of all unfinished jobs

cost of goods for sale equals

cost of goods manufactured plus beginning finished goods inventory

which of the following are used to calculate cost of goods available for sale on the schedule of cost of goods sold?

cost of goods manufactured; beginning finished goods inventory

when preparing financial statements in a job-order costing system, finished goods flow first to the ______________, and then to the ____________

balance sheet; income statement

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

gross margin is calculated by subtracting ___ from ____

cost of goods sold; sales

The journal entry to record depreciation on office equipment debits:

depreciation expense and credits accumulated depreciation

a journal entry that debits depreciation expense and credits accumulated depreciation records:

depreciation on office equipment

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 journal entry to record the more accurate allocation of overapplied or underapplied overhead includes entries to:

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

a credit balance in the manufacturing overhead account means overhead was

overapplied

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

overhead spending may not be under control; many actual overhead costs are fixed