LearnSmart Chapter 2A

The value of work in process ending inventory is calculated by:

Summing the costs of all started but unfinished jobs

the purpose of the MOH account is to

accumulate all MOH costs as they occur during a period

Cost of goods manufactured includes

all manufacturing costs of goods finished during the period

the journal entry to record shippings goods to customers includes a credit to

finished goods

Job #345 consisted of 1,000 unites at a total cost of $200k. The cost transferred to COGS for the sale of 600 of the units is

$200k/1,000 * 600 = $120k

Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account:

As they are incurred

The beginning balance on a job cost sheet represents the:

Cost of work done in prior periods A job cost sheet is used for a job in progress. The cost of completed, unsold jobs is in Finished Goods.

The journal entry to record depreciation on factory equipment:

Debit: MOH Credit: Accumulated Depreciation

in june $3k of prepaid factory insurance expired. The journal entry to record this event would be

Debit: MOH Credit: Prepaid insurance

a company requisitioned $40k in direct materials and $30k in indirect materials from the storeroom to be used in production. The journal entry to record this transaction would be

Debit: Work in process $40k MOH $30k Credit: Raw materials $70k

Completed units that have not yet been sold are found in _____ _____ inventory

Finished Goods

CompanyX just completed a job that cost $14K in direct materials, $12K in direct labor, and $8K in applied MOH. The journal entry to record completion of the job would be

Finished goods, including direct materials, direct labor and MOH should be $34K Debit: finished goods $34K Credit: work in process $34K

What finds of costs are assigned to units of production in absorption costing? name 2

Fixed manufacturing costs Variable manufacturing costs

Which method is used by companies that make many different products each period?

Job-ordering costing

What account is debited to record indirect labor costs?

MOH

A company insured $10K in direct labor costs and $8K in indirect labor costs. The journal entry to record this transaction is:

Work in process $10k and MOH $8K and credits salaries Salaries and wages payable $18K

A journal entry that debits MOH and credits property taxes payable records the

application of property taxes

when a job is completed which account is debited

finished goods

The journal entry that debits Work in Process and Manufacturing overhead and credits Salaries and Wages Payable is recording:

direct and indirect labor costs

the cost of jobs still unfinished at the end of a period are included in

ending work in process inventory

A journal entry that debits MOH and credits accounts payable could be made to record

factory utilities expense

a journal entry that debits raw materials and credits account payable is recording the

purchase of materials

Any purchased materials that will go into the finished products are first recorded in the _____ _____ inventory account

raw materials

Define: Cost of Goods Manufactured

sum of all jobs transferred from work in process to finished goods

All job costs will be recorded by the time

the job is completed

Define: Cost of Goods Manufactured

the sum of all amounts transferred from work in process to finished goods during a period (COGS are those units transferred out of finished goods)

which accounts are debited in the journal entry to record manufacturing labor costs

work in process and MOH

How are manufacturing costs that CANNOT be traced to a particular product assigned to products and services?

By averaging across time and across products

A journal entry that debits MOH and credits Accounts Payable could NOT record the incurrence of:

direct labor costs The incurrence of direct labor costs should be recorded by debiting work in process account