ACC 212

How to find the predetermined overhead rate?

take the estimated overhead rate/estimated direct materials cost

how to find direct labor used?

take the factory payroll and minus the indirect labor

Factory overhead is underapplied if

the applied overhead is less than the actual overhead. Journal entry is a debit to cost of goods sold, credit to factory overhead

Factory overhead is overapplied if

the applied overhead is more than the actual overhead. Journal entry is a debit to factory overhead, credit to cost of goods sold

Table of Cost of goods sold

Beginning finished goods inventory add: cost of goods manufactured (# from manufacturing statement) = cost of goods available for sale less: ending finished goods inventory

journal entry for indirect labor

Debit Factory Overhead; credit Factory Wages Payable.

Manufacturing Statement

Raw Materials add: raw materials purchased = raw materials available for use less: raw materials inventory = direct materials used Direct Labor Factory Overhead (list + add all items) =total manufacturing costs add: work in process inventory (beginning) =total cost of work in process less: work in process inventory (ending) = cost of goods sold

How to find the direct materials used?

Take the raw materials inventory + raw materials purchased - indirect materials= (#) take that # and the difference between that and the ending balance in raw materials inventory is the direct materials used

journal entry to record the cost of goods sold

debit cost of goods sold, credit finished inventory

journal entry for indirect materials used

debit factory overhead, credit raw materials inventory

journal entry to record total payroll paid in cash

debit factory wages payable, credit cash

Journal entry to record raw materials purchase

debit raw materials inventory, credit cash

journal entry to record direct labor used?

debit to work in process inventory, credit to factory wages payable

journal entry to record use of direct labor

debit work in process inventory, credit factory wages payable

journal entry to record direct material usage

debit work in process inventory, credit raw materials

What are prime costs?

direct labor and direct materials

Manufactoring Costs include

direct materials, direct labor, applied overhead

the journal entry to record direct labor used in process costing is

increase in assets and an increase in liabilities

process operations

involve the mass production of similar products in a continuous flow of sequential processes

a job which involves producing more than one unit of a custom product is called a

job lot