Accounting Ch 3
Which of the following costs are found on the balance sheet of a manufacturer?
Direct Labor Manufacturing Overhead Raw Materials
Himber, Inc. just completed a job that cost $14,000 in direct materials, $12,000 in direct labor, and $8,000 in applied manufacturing overhead. The journal entry to record completion of the job debits ______
Finished goods $34,000 and credits Work in process $34,000 Reason: Finished goods, including direct materials, direct labor and manufacturing overhead, equals $34,000.
If a company incurs $2,000 of factory rent, $1,000 of factory utilities, and $5,000 of miscellaneous factory costs, the journal entry to record these transactions would be to debit ______.
Manufacturing overhead $8,000 and credit Accounts payable $8,000
The journal entry to record accrued property taxes for a factory building debits ______.
Manufacturing overhead and credits Property taxes payable
Which of the following costs are found on the balance sheet of a manufacturer?
Raw Materials Manufacturing Overhead Direct Labor
Manufacturing overhead is applied with a debit to ______.
Work in process
The journal entry to record a completed job credits ______.
Work in process
The journal entry to record issuing both direct and indirect materials into production debits ______.
Work in process and Manufacturing overhead
The Manufacturing Overhead account is debited when _____
actual overhead costs are incurred
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 Finished goods and credits Work in process records the ______.
completion of a job
Finished goods ______.
consists of completed, unsold goods
The amount transferred from Work in Process to Finished Goods is _____
cost of goods manufactured
Manufacturing overhead applied to production is always recorded on the _____ side of the manufacturing overhead account and the _____ side is always used to record the actual manufacturing costs incurred.
credit debit
Underapplied or overapplied overhead is the ______.
difference between overhead applied to work in process and actual overhead
The journal entry to record a completed job debits ______.
finished goods
Cost of goods manufactured ______.
includes the manufacturing costs of goods finished during the period
Labor costs charged to Manufacturing Overhead represent ______ labor costs.
indirect
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 or produced
Manufacturing overhead consists of all ______.
manufacturing costs other than direct labor and direct materials
When labor costs are incurred, _________ labor costs are added directly to the Work in Process account.
only direct
The difference between overhead applied to work in process and actual overhead is ______.
overapplied or underapplied overhead
Selling and administrative costs incurred are treated as ______.
period expenses
A journal entry that debits Raw Materials and credits Accounts Payable is recording the ______.
purchase of materials
The journal entry to record the purchase of materials debits ______.
raw materials
The schedule of cost of goods ______ summarizes the portions of those costs that remain in ending Finished Goods inventory and that are transferred out of Finished Goods into Cost of Goods Sold.
sold
Costs of partially completed units are accounted for in ______.
work in process
George Corporation recognized $1,000 of accrued property taxes on its manufacturing facility. The journal entry to record this debits ______.
Manufacturing overhead $1,000 and credits Property taxes payable $1,000
Which of the following statements are true?
When materials are purchased they are recorded in the Raw materials inventory account. Raw materials inventory represents the cost of materials not yet used in production.
The journal entry to record $10,000 in manufacturing overhead applied to Job #40 debits ______.
Work in process $10,000 and credits Manufacturing overhead $10,000
The journal entry to record the purchase of materials credits ______.
accounts payable
When preparing financial statements in a job-order costing system, finished goods flow first to the ____ and then to the ____.
balance sheet income statement
overapplied or underapplied overhead
cost of goods manufactured
Any purchased materials that will go into the finished product are first recorded in the ____ inventory account.
raw materials
Any purchased materials that will go into the finished product are first recorded in the _______ _______, inventory account.
raw materials
