Managerial Accounting Week 4 Concepts

Which of the following occurs when a job has been completed and transferred to the finished goods warehouse?

Credit Work in Process

Which of the following occurs when manufacturing overhead is applied to Work in Process?

Credit to Manufacturing Overhead

Which of the following occurs when finished jobs are shipped to customers?

Debit COGS

indicate which account should be debited and which account should be credited: Lubricating oil, waste cotton, solder are used in the factory.

Debit Manufacturing OH Credit Raw Materials

indicate which account should be debited and which account should be credited: Salary of the production supervisor is payable

Debit Manufacturing OH Credit Salaries and Wages Payable

indicate which account should be debited and which account should be credited: Manufacturing OH is applied to jobs using a predetermined overhead rate

Debit Work in Process Credit Manufacturing OH

indicate which account should be debited and which account should be credited: Direct materials are issued into production for a specific job.

Debit Work in Process Credit Raw Materials

indicate which account should be debited and which account should be credited: The wages of direct laborers who worked on a particular job are payable

Debit Work in Process Credit Salaries and Wages Payable

Which of the following statements about manufacturing overhead costs is not correct? A). All manufacturing costs other than direct materials and direct labor are classified as manufacturing overhead costs. B). All manufacturing costs other than direct materials and direct labor are entered directly into the Manufacturing Overhead account. C). Depreciation on factory equipment is recorded with a debit to Depreciation Expense. D). Manufacturing overhead costs are recorded with a debit to Manufacturing Overhead account as they are incurred.

Depreciation on factory equipment is recorded with a debit to Depreciation Expense.

What is (are) used in activity-based absorption costing to assign overhead costs to products?

Multiple Activity Rates

Which of these is not a product cost? Raw materials, manufacturing overhead costs, Sales commission, direct labor

Sales Commission

Which of the following best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as direct and indirect materials in production?

Work in Process Manufacturing Overhead Raw Materials

Which of the following best describes the journal entry to record the use of direct and indirect labor in production?

Work in Process Manufacturing Overhead Salaries and Wages Payable

An activity measure is...

an allocation base

When companies incur selling and administrative costs, those costs ________.

do not flow through the three inventory accounts

Design and engineering changes are examples of ________.

product-level activities