Chapter 19 Accounting Objective

On June​ 1, Dalton Productions had beginning balances as shown in the​ T-accounts below. Raw Materials Inventory ​10,000 ​ Work-in-Process Inventory ​20,000 Finished Goods Inventory ​25,000 Manufacturing Overhead ​41,000 During​ June, the following transactions took​ place: June​ 2: Issued​ $2,900 of direct materials and​ $200 of indirect materials to production. What was the balance in the Manufacturing Overhead account following this​ transaction

41,200 (add indirect to MO)

On June​ 1, Westbrook Productions had beginning balances as shown in the Tminusaccounts below. Raw Materials Inventory ​10,000 WorkminusinminusProcess Inventory ​20,000 Finished Goods Inventory ​25,000 Manufacturing Overhead ​41,000 During​ June, the following transactions took​ place: June​ 2: Issued $ 3 comma 300 of direct materials and $ 700 of indirect materials to production. June​ 13: Incurred $ 6 comma 100 of direct factory labor cost and $ 14 comma 600 of indirect factory labor cost. What was the balance in the Manufacturing Overhead account following these​ transactions?

56,300 (add all indirect to MO)

The predetermined overhead allocation rate is the rate used to​ ________.

Allocate estimated manufacturing overhead costs to jobs

Which of the following will be debited to the Manufacturing Overhead account of a watch​ manufacturer?

Factory electricity costs

Accounting​ firms, building​ contractors, and healthcare providers use process costing

False

Manufacturing overhead is allocated by debiting the Finished Goods Inventory account.

False

The cost of indirect materials is transferred out of the Manufacturing Overhead account and accumulated in the Raw Materials Inventory account.

False

When raw materials are requisitioned for a​ job, the Raw Materials Inventory account is debited.

False

​Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system.

False

The journal entry to record indirect labor costs incurred involves a debit to the​ ________.

Manufacturing Overhead Account

Uniq Works purchased raw materials amounting to $ 128 comma 000 on account and $ 18 comma 000 for cash. The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis. Which of the following journal entries correctly records this​ transaction?

Raw Materials Inventory 146 comma 000 Cash 18 comma 000 Accounts Payable 128 comma 000

A job order costing system is used by companies that manufacture batches of unique products or provide specialized services.a

True

Manufacturing Overhead is a temporary account used to accumulate indirect production costs during the accounting period.

True

Manufacturing overhead is allocated by debiting the​ Work-in-Process Inventory account and crediting the Manufacturing Overhead account.

True

The actual direct labor costs are assigned to individual​ jobs, and the actual direct labor cost is recorded with a debit to Work-in-process Inventory

True

The amount of taxes and insurance incurred and paid for the plant of a manufacturing company should be debited to the Manufacturing Overhead account.

True

When direct materials are received on the production​ floor, they are recorded on the job cost record.

True

The journal entry to record direct labor costs actually incurred involves a debit to the​ ________.

Work in process

Which of the following accounts would be debited in the journal entry to record the issuance of direct materials

Work in process

Manufacturing Overhead is a temporary account used to​ ________ indirect production costs during the accounting period.

accumulate

Which of the following is the correct order of the four steps of tracking product​ costs?

accumulate, assign, allocate, adjust

The entry to record the purchase of direct materials on account would include a_

debit to raw materials inventory account

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

false

The predetermined overhead allocation rate is calculated by dividing​ ________.

the estimated overhead costs by total estimated quantity of the overhead allocation base

The journal entry to issue​ $500 of direct materials and​ $40 of indirect materials to production involves​ debit(s) to the​ ________.

​Work-in-Process Inventory account for​ $500 and Manufacturing Overhead account for​ $40