Econ 137a - CH3 terms

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 overhead

add the amount to cost of goods sold

The journal entry to record a completed job debits ______.

finished goods - Credits work in process

Which of the following is a clearing account?

manufacturing overhead

When a job is completed, its costs are transferred into ______.

Finished goods

Which account is credited when manufacturing overhead is applied?

Manufacturing overhead

Net Operating Income

Sales - (COGS) - Selling and Admin Exp (Salaries, Deprection Expense, Advertising Exp, Other Exp)

Gross Margin

Subtract cogs from sales

Total Manufacturing Costs

The sum of direct materials, direct labor, and applied manufacturing overhead incurred in the current period.

The Manufacturing Overhead account is debited when

actual overhead costs are incurred

Raw Materials Inventory

an asset account that accumulates the costs of materials ready for the production process

Job costs sheets and the work in process account contain ____ manufacturing overhead

applied - never actual costs

Period Costs

are recorded as expenses as incurred and do not flow through the inventory accounts

Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account ______.

as they are incurred

Unadjusted cost of goods sold

beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory

cost of goods available for sale

beginning inventory + cost of goods purchased (Cost of goods manufactured)

Which of the following costs are found on the balance sheet of a manufacturer

manufacturing overhead, direct labour, and raw materials

overapplied overhead

subtract the amount from cost of goods sold

Cost of Goods Manufactured

the manufacturing costs associated with the goods that were finished during the period. - Sum of all goods transferred from work in process to finished goods in the period. - =(beginning work in process + total manufacturing costs -ending work in process)

Goods Available for Sale

the sum of beginning inventory and purchases for the period

work in process

units of product that are only partially complete and will require further work before they are ready for sale to the customer - "applied" manufacturing overhead - actual direct materials cost - actual direct labor cost

The journal entry to record issuing both direct and indirect materials into production debits ______.

work in process and raw materials