Ch 3 LearnSmart

A journal entry debiting Salaries and crediting Salaries and Wages Payable could record

Administrative salaries

What accounts are debited when goods are sold on account?

Cost of goods sold and Accounts receivable

When overhead is applied to Work in Process

Manufacturing overhead is credited

When actual manufacturing overhead is incurred

Manufacturing overhead is debited

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

The journal entry to record depreciation on office equipment debits is

Depreciation expense and credits Accumulated depreciation

When goods are sold on account, what accounts are credited?

Finished goods and Sales

The journal entry to record a cash payment of $400 for insurance on administrative office equipment credits cash and debits

Insurance expense

The ________ (debit/credit) side of the manufacturing overhead account is always used to record manufacturing overhead applied to production and the ______ (debit/credit) side is always used to record the actual manufacturing costs incurred

credit - debit

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

The difference between overhead applied to work in process and actual overhead is

overapplied or underapplied overhead

A journal entry that debits advertising expense and credits Cash would record the incurrence of a

selling cost

When the period ends

Manufacturing overhead is closed

A journal entry that debits Manufacturing overhead and credits Accounts payable could be made to record

Rent expense of factory equipment Factory utilities expense (depreciation on factory equipment goes to accumulated depreciation and purchase of indirect materials goes to Raw materials inventory)

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

Subtracted from raw materials used in production

When a job is completed, which account is credited

Work in progress