MGT 11B CH.3 LS

The journal entry to record issuing materials to be used in production credits:

Raw materials

the journal entry to record general selling and administrative costs debits:

an expense account and credit cash/ a liability

what side of the manufacturing overhead account is always used to record manufacturing overhead applied to production?

credit

when overhead is applied to work in process manufacturing is :

credited

a journal entry that debits depreciation expense and credits accumulated depreciation records:

depreciation on office equipment

labor costs charged to manufacturing overhead represent:

indirect labor costs

will applied manufacturing overhead most likely equal or not equal actual manufacturing overhead?

it would not equal because applied manufacturing overhead is an estimate, so only a coincidence would cause it to equal actual manufacturing overhead

what is a clearing account?

manufacturing overhead

the journal entry to record depreciation on factory equipment debits:

manufacturing overhead and credits accumulated depreciation

what is the difference between the entries to record depreciation on office equipment and depreciation on factory equipment?

one debits depreciation expense, while the other debits manufacturing obverhead

the value of work in process is equal to:

the cost of all unfinished jobs

a debit manufacturing overhead means it was

underapplied

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

manufacturing overhead is applied with a debit to:

work in process

what is directly charged to the income statement?

-administrative costs -selling costs

what methods can be used to dispose of underapplied or overapplied manufacturing overhead?

-closing it out to cost of goods sold -allocating it among work in process, finished goods, and cost of goods sold

examples of what manufacturing costs would include:

-factory insurance -factory supervisor's salary

when actual overhead is incurred manufacturing is :

debited

what accounts are debited when goods are sold on account?

cost of goods sold and accounts receivable

what side is always used to record the actual manufacturing costs incurred?

debit

Frank, Inc. recognized $20000 in depreciation on factory equipment. The journal entry would debit:

manufacturing overhead $20000 and credit accumulated depreciation $20000

a journal entry that debits manufacturing overhead and credits property taxes payable records the:

recognition of accrued property taxes

a company incurred $10000 in direct labor costs and $8000 in indirect labor costs. The journal entry to record this transaction debits:

work in process $10000 and manufacturing overhead $8000 and credits salaries and wages payable $18000

when a job is completed, what account is credited?

work in process

a company requisitioned $40000 in direct materials and $30000 in indirect materials from the storeroom to be used in production. The journal entry to record this transaction would debit:

work in process $40000, debit manufacturing overhead $30000, and credit raw materials $70000

cost of jobs still unfinished at the end of a period are included in:

ending work in process inventory

a journal entry that debits work in process and credits manufacturing overhead is recording the:

application of manufacturing overhead costs

actual overhead costs may not be proportional to the amount of the allocation base used because:

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

a journal entry that debits manufacturing overhead and credits accounts payable could be made to record:

factory utilities expense and rent expense on factory equipment