Chapter 3 Managerial Accounting

Which of the following costs are charged directly to the income statement

Administrative costs Selling costs

Which of the following are used to calculate Cost of goods available for sale on the schedule of cost of goods sold?

Beginning finished goods inventory Cost of goods manufactured

The accounts involved in closing underapplied or overapplied overhead using the simpler method are

Cost of goods sold and Manufacturing overhead

Underapplied or overapplied manufacturing overhead can be disposed of by closing it to

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

Which of the following costs are found on the balance sheet of a manufacturer?

Manufacturing Overhead Raw Materials Direct Labor

The journal entry to record accrued property taxes for a factory building debits_______________

Manufacturing overhead and credits Property taxes payable

The journal entry to record labor costs credits________

Salaries and wages payable

The journal entry to record issuing both direct and indirect materials into production debits ______.

Work in process and Manufacturing overhead

The journal entry to record the purchase of materials credits______

accounts payable

The Manufacturing Overhead account is debited when ______.

actual overhead costs are incurred

Methods to dispose of underapplied or overapplied manufacturing overhead are

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

Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account ___________

as they are incurred

Raw Materials is a(n)_________ account

asset

When preparing financial statements in a job-order costing system, finished goods flow first to the_________ and then to the _________

balance sheet and income statement

Finished goods ______.

consist of completed, unsold goods

The amount transferred from Work in Process to Finished Goods is _______.

cost of goods manufactured

Underapplied or overapplied overhead is the ______.

difference between overhead applied to work in process and actual overhead

The journal entry that debits Work in Process and Manufacturing overhead and credits Salaries and Wages Payable is recording ______. Multiple choice question.

direct and indirect labor costs

A journal entry that includes Manufacturing overhead and Cost of goods sold is recorded to

dispose of underapplied or overapplied overhead

Manufacturing overhead costs include ______.

factory maintenance wages factory utilities factory rent

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

false

Completed units that have not yet been sold are found in_____________ inventory

finished goods

When jobs are sold their costs are transferred out of______

finished goods

Cost of goods manufactured________

includes manufacturing costs of goods finished during the period

Selling and administrative costs first appear on the

income statement

Labor costs charged to Manufacturing Overhead represent ______ labor costs.

indirect

A journal entry that debits Work in process and Manufacturing overhead and credits Raw materials records the ______ Multiple choice question.

issuance of materials

Manufacturing overhead consists of all ______.

manufacturing costs other than direct labor and direct materials

Closing underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold is

more accurate than closing the entire balance to Cost of goods sold calculated by multiplying applicable percentages by the over or under applied overhead more complex than closing the entire balance to Cost of Goods Sold

When labor costs are incurred, ______ labor costs are added directly to the Work in Process account.

only direct

A credit balance in Manufacturing overhead means overhead is

overapplied

The Manufacturing Overhead account is credited when ______. Multiple choice question.

overhead is applied to Work in Process

The Manufacturing Overhead account is credited when_________

overhead is applied to Work in Process

Any purchased materials that will go into the finished product are first recorded in the_____________ inventory

raw materials

Any purchased materials that will go into the finished product are first recorded in the_________inventory

raw materials

The journal entry to record the purchase of materials debits ______. Multiple choice question.

raw materials

A journal entry that debits Advertising expense and credits Cash would record the incurrence of a ______ cost.

selling

When calculating the cost of direct materials on the schedule of cost of goods manufactured, the cost of indirect materials is _____

subtracted from raw materials used in production

Cost of goods manufactured is the ______.

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

The value of work in process is equal to__________

the cost of all unfinished jobs

Manufacturing overhead costs include ______.

the factory supervisor's salary factory insurance

When only a portion of the units involved in a job are sold, the______.

unit product cost is used to calculate the amount transferred from finished goods to cost of goods sold

Costs of partially completed units are accounted for in______

work in process