Accounting Chapter 3
a journal entry that debits finished goods and credits work in process records the
completion of a job
the cost of goods ------- is the sum of all amounts transferred from work in process goods to finished goods during a period
manufactured
what account is debited to record indirect labor costs?
manufacturing overhead
which account is credited when manufacturing overhead is applied
manufacturing overhead
the journal entry to record depreciation on factory equipment debits
manufacturing overhead and credits accumulated depreciation
which of the following would not be charged to the manufacturing overhead account?
non-manufacturing costs
when a job is completed, which account is debited
finished goods
a journal entry debiting cost of goods sold and crediting finished goods is made when
goods are sold
overhead is applied if
actual overhead is less than applied overhead
completed units that have not yet been sold are found in ------ ----- inventory
finished goods
a journal entry that debits manufacturing overhead and credits accounts payable would not be used to record: A) direct labor costs B) rent on factory equipment C) factory utilities costs D) miscellaneous factory overhead costs
direct labor costs
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 issuing materials to be used in production credits ------
raw materials
true or false: underapplied or overapplied overhead occurs because overhead is applied to jobs using a predetermined rate based on estimates of costs and activity levels
true
a debit balance in manufacturing overhead means overhead was
underapplied
when a job is completed, which account is credited?
work in process