ch3 242 sb
Job #4260 consisted of 1,000 units at a total cost of $200,000. The cost transferred to Cost of Goods Sold for the sale of 600 of the units is ______.
120,000
Which of the following costs are charged directly to the income statement?
-Selling costs -Administrative costs
Units of product that are only partially complete are contained in
work in process inventory
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
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
The Manufacturing Overhead account is debited when ______
actual overhead costs are incurred
The journal entry to record selling and administrative salaries debits ______.
an expense account and credits Cash or a liability
A journal entry that debits Work in process and credits Manufacturing overhead is recording the _____
application of manufacturing overhead costs
Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account ______.
as they are incurred
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
A journal entry that debits Work in process and Manufacturing overhead and credits Raw materials records the _____
issuance of materials
When labor costs are incurred, _________ labor costs are added directly to the Work in Process account.
only direct
Any purchased materials that will go into the finished product are first recorded in the:
raw material inventory account
Any purchased materials that will go into the finished product are first recorded in the ____ ____ inventory account.
raw materials
Cost of goods manufactured is the ______.
sum of all jobs transferred from Work in process to Finished goods
Completed units that have not yet been sold are found in:
finished goods inventory
A journal entry that debits Raw Materials and credits Accounts Payable is recording the ______.
purchase of materials
The journal entry to record issuing materials to be used in production credits ______.
raw materials
The journal entry to record the purchase of materials debits ______.
raw materials
A journal entry that debits Manufacturing overhead and credits Property taxes payable records the ______.
recognition of accrued property taxes
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 only a portion of the units involved in a job are sold, the ______.
unit product cost is used to calculate the amount transferred from finished goods to cost of goods sold
Costs of partially completed units are accounted for in ______.
work in process
Gross margin minus selling and administrative expenses equals ______.
net operating income
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
Work in Process consists of ______.
-applied manufacturing overhead -actual direct labor cost -actual direct materials cost
Manufacturing overhead costs include ______.
-factory insurance -the factory supervisor's salary
What side of the Manufacturing overhead account is applied manufacturing overhead entered on?
always credit side
Labor costs charged to Manufacturing Overhead represent ______ labor costs
indirect
Actual overhead costs may not be proportional to the actual amount of the allocation base used because ______.
-many actual overhead costs are fixed -overhead spending may not be under control
Raw materials inventory was $5,000 at the beginning of the year and $12,000 at the end of the year. During the year, a total of $27,000 in raw materials were purchased, including $4,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period.
16,000
Given the following, calculate total manufacturing costs: Direct materials: $62,000 Direct labor: $78,000 Manufacturing overhead applied: $46,000 Actual manufacturing overhead: $51,000 Beginning work in process inventory: $32,000 Ending work in process inventory: $35,000 Multiple choice question.
186,000
Given the following, calculate total manufacturing costs: Direct materials: $40,000; Direct labor: $100,000; Manufacturing overhead applied: $120,000; Beginning Work in process inventory: $30,000; Ending Work in process inventory: $12,000
260,000
Meep Industries had unadjusted cost of goods sold of $300,000. Overhead was overapplied by $20,000. Adjusted cost of goods sold is ______.
280,000
Martin Industries had unadjusted cost of goods sold of $450,000. Overhead was underapplied by $30,000. Adjusted cost of goods sold is ______.
480,000
A company requisitioned $40,000 in direct materials and $30,000 in indirect materials from the storeroom to be used in production. The journal entry to record this transaction debits ______.
Work in process $40,000, debits Manufacturing overhead $30,000 and credits Raw materials $70,000
A company reports Gross margin of $100,000, Cost of goods sold of $70,000, and Selling and administrative expenses of $45,000. Net operating income (loss) is ______.
55,000
Raw materials inventory was $27,000 at the beginning of the year and $25,000 at the end of the year. During the year, $100,000 in raw materials were purchased, including $28,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period.
74,000