Chapter 3 Managerial accounting
applied manufacturing overhead is entered on what side of the manufacturing overhead account
always the credit side
which of the following appears on job cost sheets and in the work in process account?
applied manufacturing overhead
The cost of jobs still unfinished at the end of a period are included in: a. ending work in process inventory b. beginning finished goods inventory for the next period c. the income statement d. cost of goods manufactured
ending work in process inventory
the journal entry to record expired prepaid factory insurance debits
manufacturing overhead and credits prepaid insurance
the period ends
manufacturing overhead is closed
overhead is applied to work in process
manufacturing overhead is credited
Fillia Inc worked on three jobs this period: Job 14c, which costs 15000; Job 23a which costs 28000, and job 45b which costs 23000. At the end of the period, only Job 14c was still in process (unfinished). The cost of goods manufactured this period is _____?
$51000. The cost of goods manufactured is the cost of jobs completed during the period (jobs 23a and 45b).
a journal entry that debits manufacturing and credits accounts payable could be made to record
factory utilities expense, rent expense on factory equipment
sales minus cost of goods sold equals
gross margin
actual overhead is incurred
manufacturing overhead is debited
the journal entry to record 20,000 in deprecation on factory equipment is debit
manufacturing overhead 20,000 and credit accumulated depreciation 20,000
if a company incurs 2000 of factory rent 1000 of factory utilities and 5000 of miscellaneous factory costs the journal entry to record these transactions would be to debt
manufacturing overhead 8000 and credit accounts payable 8000
when the allocation method is used to close out the under-applied or over-applied balance remaining in manufacturing overhead, which accounts are affected
finished goods, costing of goods sold, work in process
Given: Cost of goods manufactured of $234,000; beginning finished goods inventory of $18,000; and ending finished goods inventory of $24,000, unadjusted cost of goods sold is:
$228,000unadjusted cost of goods sold = $18,000+ 234,000 - 24,000 = 228,000.
Luver corporations gross margin is $100,000, cost of goods sod equals 70,000 and selling and administrative expenses total 45,000 net operating income is
100,000-45,000=55,000
Milton corp sold goods costing $50,000 for $75,000
Cost of goods sold for $50,000 and accounts receivable for $75
cost of goods manufactured
Includes the manufacturing costs of goods finished during the period
The journal entry to record issuing both direct and indirect materials into production debits:
Work in process and Manufacturing overhead
the journal entry to record the purchase of materials credits
accounts payable
overhead is under-applied if
actual overhead is more than applied overhead
When preparing financial statements in a job-order costing system, finished goods flow first to the _____ _____ and then to the _____ _____
balance sheet; income statement
cost of direct materials
beginning inventory + purchases - indirect materials - ending inventory
what methods can be used to dispose of under-applied or overapplied manufacturing overhead
close it to cost of goods sold, allocate it to work in process, finished goods and cost of goods sold
finished goods
consist of completed units of product that have not yet been sold to customers
work in process
consists of units that are only partially complete and will require further work before they are ready for sale to the customer
what accounts are debited when goods are sold on account
cost of goods sold and accounts receivable
under-applied or over-applied manufacturing overhead can be disposed of by closing it to
cost of goods sold or allocating it to work in process, finished goods and cost of goods sold
the journal entry to record the more accurate allocation of over-applied or under applied overhead includes entries to
cost of goods sold, work in process, finished goods, and manufacturing overhead
The (Credit/Debit) side of the manufacturing overhead account is always used to record manufacturing overhead applied to production and the (Credit/Debit) is always used to record the actual manufacturing costs incurred
credit, debit
the journal entry to record expired prepaid factory insurance debits
debit Manufacturing Overhead and credit Prepaid Insurance.
the journal entry to record depreciation on office equipment debits
depreciation expense and credits accumulated deprecation
A journal entry that debits MOH and credits Accounts Payable could NOT record the incurrence of:
direct labor costs
Total Manufacturing Costs
direct materials costs, direct labor cost and manufacturing overhead applied
a journal entry that includes manufacturing overhead and cost of goods sold is recorded to
dispose of under-applied or over-applied overhead
to calculate direct materials on the schedule of cost of goods manufactured and add purchases to beginning raw materials inventory and subtract
end raw materials inventory and indirect materials used
actual overhead costs appear in the work in process account but not on the job cost sheet
false
when a job is completed its costs are transferred into
finished goods
when jobs are sold their costs are transferred out of
finished goods
a journal entry that debits work in process and manufacturing overhead and credits raw materials records the
issuance of materials
gross margin minus selling and administrative expenses equals
net operating income
applied manufacturing overhead will most likely actual manufacturing overhead
not equal
when labor costs are incurred ______ are added directly to the work in process account
only direct labor costs
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
when calculating the cost of direct materials on the schedule of cost of goods manufactured the cost of direct materials is
subtracted from raw materials used in production
the value of work in process is equal to
the cost of all unfinished jobs
manufacturing overhead costs include
the factory supervisors salary, and factory insurance
manufacturing overhead costs consist of all manufacturing costs other than direct materials and direct labor
true
manufacturing overhead is applied with a debit to
work in process
raw meterials
include any materials that go into the final product
george corporation recognized 1,000 of accrued property taxes on its manufacturing facility. the journal entry to record the debits
manufacturing overhead 1,000 and credits property taxes payable 1,000
a journal entry that debits advertising expense and credits cash would record the incurrence of a
selling cost
actual manufacturing overhead costs are recored in the manufacturing overhead account
as they are incurred