Acis 2116 Book 3

Given: Cost of goods manufactured of $234,000; beginning finished goods inventory of $18,000; and ending finished goods inventory of $24,000, calculate unadjusted cost of goods sold. $240,000 $252,000 $228,000 $258,000

$228,000

The accounts involved in closing underapplied or overapplied overhead using the simpler method are _____. Work in process and Finished goods Work in process and Manufacturing overhead Cost of goods sold and Manufacturing overhead Finished goods and Manufacturing overhead

Cost of goods sold and Manufacturing overhead

The journal entry to record the purchase of materials credits Blank______. raw materials accounts payable manufacturing overhead work in process

accounts payable

The Manufacturing Overhead account is debited when Blank______. goods are completed overhead is applied to Work in Process actual overhead costs are incurred

actual overhead costs are incurred

Overhead is underapplied if ______. actual overhead is more than applied overhead actual overhead is less than applied overhead cost of goods manufactured is less than cost of goods sold adjusted cost of goods sold is less than unadjusted cost of goods sold

actual overhead is more than applied overhead

Finished goods ______. consist of goods that require additional processing before being sold consist of goods that have been sold to customers during the period consist of completed, unsold goods is the same as cost of goods manufactured

consist of completed, unsold goods

The amount transferred from Work in Process to Finished Goods is Blank______. ending inventory cost of goods manufactured cost of goods sold

cost of goods manufactured

The amount transferred from Work in Process to Finished Goods is Blank______. cost of goods manufactured cost of goods sold ending inventory

cost of goods manufactured

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. (Enter either debit or credit in each blank.)

credit,debit

A journal entry that includes Manufacturing overhead and Cost of goods sold is recorded to ______. dispose of underapplied or overapplied overhead apply manufacturing overhead to jobs recognize the sale of goods recognize the completion of goods

dispose of underapplied or overapplied overhead

Period costs flow from Finished Goods to Cost of Goods Sold. True false

false

The journal entry to record a completed job debits Blank______. Finished goods Manufacturing overhead Work in process Cost of goods sold

finished goods

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

finished, goods

Selling and administrative costs first appear on the Blank______. statement of cash flows income statement balance sheet statement of owners' equity

income statement

Labor costs charged to Manufacturing Overhead represent ______ labor costs. both direct and indirect labor indirect direct

indirect

Cost of goods manufactured Blank______. is generally recorded as an asset on the balance sheet is the same as cost of goods sold includes manufacturing costs of goods finished during the period

is the same as cost of goods sold

Applied manufacturing overhead will most likely ______ actual manufacturing overhead. not equal equal

not equal

When labor costs are incurred, Blank______ labor costs are added directly to the Work in Process account. only direct both direct and indirect only indirect

only direct

A credit balance in the Manufacturing Overhead account means overhead was___ (Enter either overapplied or underapplied.)

overapplied

The difference between overhead applied to work in process and actual overhead is ______. ending work in process inventory cost of goods manufactured overapplied or underapplied overhead adjusted cost of goods sold

overapplied or underapplied overhead

A journal entry that debits Raw Materials and credits Accounts Payable is recording the Blank______. purchase of materials completion of goods issuance of materials into production sale of goods

purchase of materials

The journal entry to record issuing materials to be used in production credits Blank______. Raw materials Work in process Manufacturing overhead Accounts payable

raw materials

Any purchased materials that will go into the finished product are first recorded in the____ _____ inventory account. (Enter only one word per blank.)

raw, materials

The value of work in process is equal to Blank______. the cost of all unfinished jobs finished goods inventory minus cost of goods sold the sales value of all unfinished jobs

the cost of all unfinished jobs

Manufacturing overhead costs include Blank______. the CEO's salary office equipment depreciation the factory supervisor's salary direct materials factory insurance

the factory supervisor's salary factory insurance

Underapplied or overapplied overhead occurs because overhead is applied to jobs using a predetermined rate based on estimates of costs and activity levels. TrueF alse

true

When a job is completed, the job costs are transferred OUT OF ______. manufacturing overhead work in process finished goods cost of goods sold

work in process

The journal entry to record issuing both direct and indirect materials into production debits Blank______. Manufacturing overhead and Raw materials Work in process and Raw materials Work in process and Manufacturing overhead

work in process and manufacturing overhead

What side of the Manufacturing overhead account is applied manufacturing overhead entered on? The debit side, if actual is greater than applied Always the credit side The credit side, if actual is greater than applied Always the debit side

Always the credit side

Underapplied or overapplied manufacturing overhead can be disposed of by closing it to ______. Cost of goods sold only Finished goods only Cost of goods sold or allocating it to Work in process, Finished goods, and Cost of goods sold Finished goods or allocating it to Work in process, Finished goods, and Raw materials

Cost of goods sold or allocating it to Work in process, Finished goods, and Cost of goods sold

The journal entry to record accrued property taxes for a factory building debits ______. Work in process and credits Property taxes payable Work in process and credits Manufacturing overhead Manufacturing overhead and credits Accounts payable Manufacturing overhead and credits Property taxes payable

Manufacturing overhead and credits Property taxes payable

Which of the following statements are true? Raw materials inventory represents the cost of materials not yet used in production. Direct labor costs flow through the Raw materials inventory account. Raw materials inventory only includes the cost of direct materials. When materials are purchased they are recorded in the Raw materials inventory account.

Raw materials inventory represents the cost of materials not yet used in production. When materials are purchased they are recorded in the Raw materials inventory account.

All the costs appearing on the job cost sheets of the jobs that are being worked on are found in the Blank______ account. Work in Process Manufacturing Overhead Finished Goods Raw Materials

Work in process

Manufacturing overhead is applied with a debit to Blank______. Work in process Manufacturing overhead Accounts payable Cost of goods sold

Work in process

A journal entry debiting Salaries expense and crediting Salaries and wages payable could be recording Blank______. maintenance salaries administrative salaries assembly workers' wages factory supervisors' salaries

administrative salaries

Methods to dispose of underapplied or overapplied manufacturing overhead are ______. close it to Finished goods allocate it to Work in process, Finished goods, and Cost of goods sold allocate it to Raw materials, Work in process, and Finished goods close it to Cost of goods sold close it to Work in process

allocate it to Work in process, Finished goods, and Cost of goods sold close it to Cost of goods sold

What side of the Manufacturing overhead account is actual manufacturing overhead entered on?

always the debit side

To calculate total manufacturing costs, add direct materials, direct labor and ______.

applied manufacturing overhead

Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account Blank______. as the allocation base is used on a job when jobs are completed at the end of the period as they are incurred

as they are incurred

A journal entry that debits Depreciation expense and credits Accumulated depreciation records Blank______. Multiple choice question. depreciation on office equipment depreciation on factory machinery the sale of office equipment depreciation on the factory building

depreciation on office equipment

Underapplied or overapplied overhead is the ______. actual overhead overhead applied to work in process difference between overhead applied to work in process and actual overhead sum of overhead applied to work in process and actual overhead

difference between overhead applied to work in process and actual overhead

When jobs are sold their costs are transferred out of Blank______. Cost of Goods Manufactured Work in Process Cost of Goods Sold Finished Goods

finished goods

The schedule of cost of goods _____ summarizes costs that remain in Work in process inventory and that have been transferred from Work in process to Finished goods inventory. (Enter only one word per blank.)

manufactured

Actual overhead costs may not be proportional to the actual amount of the allocation base used because _____. overhead spending may not be under control overhead costs are all variable costs many actual overhead costs are fixed actual costs may be proportional to the actual use of the allocation base

overhead spending may not be under control many actual overhead costs are fixed

A debit balance in Manufacturing overhead means overhead was___ . (Enter either overapplied or underapplied.)

underapplied

Actual manufacturing overhead is Blank______ to the Manufacturing overhead account.

debited

Actual manufacturing overhead is ______ to the Manufacturing overhead account. credited debited

debited

The journal entry to record depreciation on office equipment debits Manufacturing overhead and credits Accumulated depreciation Accumulated depreciation and credits Depreciation expense Depreciation expense and credits Accumulated depreciation Accumulated depreciation and credits Manufacturing overhead

Depreciation expense and credits Accumulated depreciation

Work in Process consists of ______. actual direct materials cost applied direct labor cost applied manufacturing overhead applied direct materials cost actual manufacturing overhead actual direct labor cost

actual direct materials cost applied manufacturing overhead actual direct labor cost

Overhead is overapplied if Blank______. actual overhead is less than applied overhead actual overhead is more than applied overhead adjusted cost of goods sold is more than unadjusted cost of goods sold cost of goods manufactured is less than cost of goods sold

actual overhead is less than applied overhead

To calculate total manufacturing costs, add direct materials, direct labor and ______. actual manufacturing overhead; then add ending Work in process and subtract beginning Work in process actual manufacturing overhead applied manufacturing overhead applied manufacturing overhead to beginning Work in process and subtract ending Work in process

applied manufacturing overhead

Cost of goods manufactured is the Blank______. sum of all jobs transferred from Work in process to Finished goods average value of the Work in process account sum of all jobs in Finished goods at the end of a period value of all jobs transferred from Finished goods to Cost of goods sold

sum of all jobs transferred from Work in process to Finished goods

Costs of partially completed units are accounted for in Blank______. finished goods work in process cost of goods manufactured raw materials

work in process

To calculate the adjusted cost of goods sold ______. subtract underapplied overhead from or add overapplied overhead to cost of goods manufactured add underapplied overhead to or subtract overapplied overhead from cost of goods manufactured subtract underapplied overhead from or add overapplied overhead to unadjusted cost of goods sold add underapplied overhead to or subtract overapplied overhead from unadjusted cost of goods sold

add underapplied overhead to or subtract overapplied overhead from unadjusted cost of goods sold