Week II Act Concept check

Martin Industries had an unadjusted cost of goods sold of $450,000. Overhead was underapplied by $30,000. Adjust the cost of gold sold is:

$480,000

Which of the fallowing are used to calculate Cost of Goods Available for sale on the cost of goods sold? - Beginning finished goods inventory - cost of goods manufactured - ending finished goods inventory - cost of goods sold

- Beginning finished goods inventory - cost of goods manufactured

which of the following are used to calculate the cost of good available for sale on the cost of goods sold? - Cost of good manufactured - Ending finished goods inventory - cost of goods sold - Beginning finished goods inventory

- Cost of good manufactured - Ending finished goods inventory

Work in progress consists of:

- actual direct material cost - actual direct labor cost - applied manufacturing overhead costs

Add underapplied overhead to or subtract overapplied overhead from the unadjusted cost of good sold is how you calculate what

Adjusted cost of good sold

Cost of Direct Materials

Beginning Inventory + Purchased - indirect materials - Ending Inventory

What accounts are debited when goods are sold on an account

Cost of Goods sold and Accounts Receivable

The value of work in progress is equal to :

Cost of all unfinished jobs

During April, materials requisition forms were prepared to authorize withdrawing $52,000 in raw materials from the storeroom for use in production. These raw materials included $50,000 of direct and $2,000 of indirect materials. What does this journal entry look like?

Credit Work in progress 50,000 Credit manufacturing overhead 2,000 Debit Raw Materials 52,000

assume that the company recognized $18,000 in depreciation on factory equipment during April. The following entry records the accrual of this depreciation:

Credit: Manufacturing Overhead 18000 Debit: Accumulated Depreciation 18000

Journal entry to record $20,000 in depreciation on factory equipment debits and credits what

Debits: manufacturing overhead 20k Credits: Accumulated depreciation 20k

True or False: Overhead costs appear in the Work in Progress account but not on the Job Cost Sheet

False

A journal entry that debits work in progress and Manufacturing Overhead and Credits raw materials records the:

Issuance of materials

What costs go into Inventories : Raw material

Raw material

What inventories go on the balance sheet?

Raw material, Work in progress, finished good

a journal entry to record issuing both direct and indirect materials into production debits:

Work in Progress and Manufacturing Overhead

A journal entry debiting salary expense and crediting Salaries and Wages payable could record:

administrative salaries

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

applied manufacturing overhead

Actual manufacturing overhead is entered in the manufacturing overhead account:

as they are incurred

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

balance sheet income statement

Finished goods are

completed unsold goods

A journal entry that debits finished goods and credits work in progress means what

completion of a job

includes manufacturing costs of finished goods during the period

cost of good manufacturing

When purchasing $60,000 worth of Raw Material. What does it look like on a journal entry for the Balance Sheet

credit raw material 60,000 debit acct payable 60,000

When only a portion of units involved in a job are sold, what accounting entry occurs? a. Unsold units are transferred to another job b. The entire cost of the job is transferred from finished goods to cost of goods sold c. The cost is held in the finished goods account until all units involved in the job are sold d. The unit product cost is used to calculate the amount that will be transferred from finished goods to cost of goods sold

d.

difference between underapplied and overapplied overhead is the:

difference between overhead applied to work in progress and actual overhead

Where does finished good go after the balance sheet?

income statement as Cost of Good Sold

A journal entry to record a cash payment of $400 for insurance on administrative office equipment debits _____ and credits cash

insurance expense

the schedule of cost of good ____________ summarizes costs that remain in Work in progress inventory that have been transferred from Work in progress to Finished goods inventory

manufactured

a credit balance in the manufacturing overhead means overhead was

overapplied

how are manufacturing overhead costs assigned to Work in Process?

predetermined overhead rate

assume that during April, Ruger Corporation recognized $13,000 in accrued property taxes and that $7,000 in prepaid insurance expired on factory buildings and equipment. The following entry records these items:

Credit: Manufacturing overhead 20,000 Debit: Property Tax Payable 13,000 Debit: Prepaid Insurance 7,000

The following entry records the application of Manufacturing Overhead to Work in Process if you assume that Ruger Corporation's predetermined overhead cost is $90,000.

Credit: Work in progress 90,000 Debit: Manufacturing Overhead 90,000

A journal entry that debits manufacturing overhead and credits Accumulated depreciation records:

Depreciation on factory equipment

What costs go into Inventories : Work in progress

Direct Labor , Manufacturing overhead

What account is debited to record indirect labor costs

Manufacturing overhead

predetermined overhead rate equation

estimated total manufacturing overhead cost/estimated total amount of the allocation base

A journal entry that debits Manufacturing overhead and credits prepaid insurance records the:

expiration of prepaid factory insurance

A journal entry that debits work in progress and credits Manufacturing overhead is recording the:

overhead cost applied to work in progress

the schedule of cost of goods ______ summarizes costs that remain in Finished goods inventory and that have been transferred to cost of goods sold

sold

Includes manufacturing costs of goods finished during the period

Cost of Goods manufactured

To illustrate, assume that Ruger Corporation's predetermined overhead rate is $6 per machine-hour. Also assume that during April, 10,000 machine-hours were worked on Job A and 5,000 machine-hours were worked on Job B (a total of 15,000 machine-hours).

Thus, $90,000 in overhead cost ($6 per machine-hour × 15,000 machine-hours = $90,000) would be applied to Work in Process. The following entry records the application of Manufacturing Overhead to Work in Process:

Costs of partially completed units are accounted for in

Work in progress

What account is debited to record direct labor costs

Work in progress

a journal entry to record general selling and administrative costs debits

an expense account and credit Cash or liability

Is actual manufacturing overhead debited or credited to the manufacturing overhead account? a. credited b. debited

b. debited