Any purchased materials that will go into the finished product are first recorded in the _______ ________ Show
inventory account. Blank 1: Raw Blank 2: Materials or Material Work in Process consists of ______.
actual direct labor cost actual direct materials cost applied manufacturing overhead Completed units that have not yet been sold are found in _______ _________ inventory. Blank 1: Finished Blank 2: Goods The journal entry to record the purchase of materials credits ______.
Manufacturing overhead is debited in the journal entry to record the issue of _________. Work in process is debited in the journal entry to record the issue of _______. Raw materials is debited in the journal entry to record the purchase of ________. A company requisitioned $40,000 in direct materials and $30,000 in indirect materials from the storeroom to be used in production. The journal entry to record this transaction debits ______.
Work in process $40,000, debit Manufacturing overhead $30,000 and credit Raw materials $70,000 Which of the following statements are true? (Select all that apply)
When materials are purchased they are recorded in the Raw materials inventory account. Raw materials inventory represents the cost of materials not yet used in production. The Manufacturing Overhead account is debited when ______.
actual overhead costs are incurred Units of product that are only partially complete are contained in ______ _______ process inventory. Labor costs charged to Manufacturing Overhead represent ______ labor costs.
Finished goods ______.
consists of completed, unsold goods Manufacturing overhead consists of all ______.
manufacturing costs other than direct labor and direct materials A journal entry that debits Raw Materials and credits Accounts Payable is recording the ______.
The journal entry to record issuing materials to be used in production credits ______.
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. Blank 1: credit Blank 2: debit When labor costs are incurred, _________ labor costs are added directly to the Work in Process account.
A journal entry that debits Manufacturing overhead and credits Accounts payable would not be used to record ______.
Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account ______.
The journal entry to record the purchase of materials credits ______.
A journal entry that debits Manufacturing overhead and credits Property taxes payable records the ______.
recognition of accrued property taxes The journal entry to record issuing both direct and indirect materials into production debits ______.
Work in process and Manufacturing overhead Which account is credited when manufacturing overhead is applied?
The Manufacturing Overhead account is debited when ______.
actual overhead costs are incurred Selling and administrative costs first appear on the ______.
income statement Reason: Selling and administrative costs are recorded, as they are incurred, on the income statement as expenses. A journal entry that debits Manufacturing overhead and credits Accounts payable could be made to record ______ (Select all that apply).
factory utilities expense rent expense on factory equipment Manufacturing overhead costs include ______.
the factory supervisor's salary factory insurance The journal entry to record selling and administrative salaries debits ______.
an expense account and credits Cash or a liability The journal entry to record accrued property taxes for a factory building debits ______.
Manufacturing overhead and credits Property taxes payable When a job is completed, the job costs are transferred OUT OF ______.
Manufacturing overhead is applied with a debit to ______.
Cost of goods manufactured is the ______.
sum of all jobs transferred from Work in process to Finished goods Selling and administrative costs incurred are treated as ______.
Job #4260 consisted of 1,000 units at a total cost of $200,000. The cost transferred to Cost of Goods Sold for the sale of 600 of the units is ______.
$120,000 Reason: $200,000 ÷ 1,000 × 600 = $120,000 If a company incurs $2,000 of factory rent, $1,000 of factory utilities, and $5,000 of miscellaneous factory costs, the journal entry to record these transactions would be to debit ______.
Manufacturing overhead $8,000 and credit Accounts payable $8,000 The schedule of cost of goods __________ summarizes the portions of those costs that remain in ending Finished Goods inventory and that are transferred out of Finished Goods into Cost of Goods Sold. A journal entry debiting Salaries expense and crediting Salaries and wages payable could record:
maintenance salaries are debited to factory supervisors' salaries are debited to assembly workers' wages are debited to To calculate direct materials on the schedule of cost of goods manufactured, add purchases to beginning raw materials inventory and subtract ______.
ending raw materials inventory and Indirect materials used When a job is completed, its costs are transferred into ______.
Gross margin minus selling and administrative expenses equals ______.
The cost of goods _______ is the sum of all amounts transferred from Work in process to Finished goods during a period. Blank 1: manufactured, completed, produced, or finished Overhead is underapplied if ______.
actual overhead is more than applied overhead 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 Actual manufacturing overhead is ______ to the Manufacturing overhead account. The schedule of cost of goods sold ______ summarizes costs that remain in Work in process inventory and that have been transferred from Work in process to Finished goods inventory. Blank 1: manufactured or produced Raw materials inventory was $5,000 at the beginning of the year and $12,000 at the end of the year. During the year, a total of $27,000 in raw materials were purchased, including $4,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period. $16,000 Reason: Cost of direct materials = Beginning Inventory + Purchases - Indirect Materials - Ending Inventory ($5,000 + $27,000 - $12,000 - $4,000 = $16,000) A debit balance in Manufacturing overhead means overhead was ______. Net operating income is calculated by subtracting ______ from ______.
selling and administrative expenses; gross margin Gross margin - selling & admin expenses = net operating income 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 Overhead is overapplied if:
actual overhead is less than applied overhead. Which of the statements regarding closing out over or underapplied overhead is correct?
Closing to Cost of goods sold is simpler, and allocating is more accurate. What side of the Manufacturing overhead account is actual manufacturing overhead entered on?
A credit balance in the Manufacturing Overhead account means overhead was _________. What methods can be used to dispose of underapplied or overapplied manufacturing overhead? (Select all that apply)
Close it to Cost of goods sold. Allocate it to Work in process, Finished goods, and Cost of goods sold. The simpler method of closing out the balance of Manufacturing overhead is ______.
closing it out to Cost of goods sold The more accurate method of closing out the balance in Manufacturing overhead is:
allocating it among Work in process, Finished goods, and Cost of goods sold. Which of the statements regarding closing out over or underapplied overhead is correct?
Closing to Cost of goods sold is simpler, and allocating is more accurate. What account would be credited when the direct materials are purchased on account?When you initially purchase materials for use, you record the purchase in the accounting records at cost. This entry consists of a debit to raw materials inventory and a credit to accounts payable or cash, reports Accounting Tools. The entry increases the total inventory account.
What accounts would be debited and credited when the wages for indirect laborers are recorded *?Indirect labor records are also maintained through time tickets, although such work is not directly traceable to a specific job. The difference between direct labor and indirect labor is that the indirect labor records the debit to manufacturing overhead while the credit is to factory wages payable.
When raw materials are purchased on account which account is debited?When a company purchases raw materials, the raw materials are recorded into inventory, which results in a debit to raw materials. Typically, a company will pay for raw materials on credit, which would result in a credit to accounts payable.
What account is debited when direct materials and indirect materials are issued to the producing department?Answer: a) a credit to materials inventory. the issuance of direct material to production is a debit in work in process inventory and credit materials inventory.
|