Econ 137a - CH3 terms
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.
Credit, Debit
underapplied overhead
add the amount to cost of goods sold
The journal entry to record a completed job debits ______.
finished goods - Credits work in process
Which of the following is a clearing account?
manufacturing overhead
When a job is completed, its costs are transferred into ______.
Finished goods
Which account is credited when manufacturing overhead is applied?
Manufacturing overhead
Net Operating Income
Sales - (COGS) - Selling and Admin Exp (Salaries, Deprection Expense, Advertising Exp, Other Exp)
Gross Margin
Subtract cogs from sales
Total Manufacturing Costs
The sum of direct materials, direct labor, and applied manufacturing overhead incurred in the current period.
The Manufacturing Overhead account is debited when
actual overhead costs are incurred
Raw Materials Inventory
an asset account that accumulates the costs of materials ready for the production process
Job costs sheets and the work in process account contain ____ manufacturing overhead
applied - never actual costs
Period Costs
are recorded as expenses as incurred and do not flow through the inventory accounts
Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account ______.
as they are incurred
Unadjusted cost of goods sold
beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory
cost of goods available for sale
beginning inventory + cost of goods purchased (Cost of goods manufactured)
Which of the following costs are found on the balance sheet of a manufacturer
manufacturing overhead, direct labour, and raw materials
overapplied overhead
subtract the amount from cost of goods sold
Cost of Goods Manufactured
the manufacturing costs associated with the goods that were finished during the period. - Sum of all goods transferred from work in process to finished goods in the period. - =(beginning work in process + total manufacturing costs -ending work in process)
Goods Available for Sale
the sum of beginning inventory and purchases for the period
work in process
units of product that are only partially complete and will require further work before they are ready for sale to the customer - "applied" manufacturing overhead - actual direct materials cost - actual direct labor cost
The journal entry to record issuing both direct and indirect materials into production debits ______.
work in process and raw materials
