Flashcards in Chapter 3 Deck (72)
All of the following are product costs except ________.
manufacturing overhead costs
Which of the following best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as direct and indirect materials in production?
Debit Work in Process, debit Manufacturing Overhead, and credit Raw Materials.
Which of the following best describes the journal entry to record the use of direct and indirect labor in production?
Debit Work in Process, debit Manufacturing Overhead, and credit Salaries and Wages Payable.
Which of the following occurs when manufacturing overhead is applied to Work in Process?
Credit to Manufacturing Overhead.
When companies incur selling and administrative costs, those costs ________.
do not flow through inventories on the balance sheet
Which of the following occurs when a job has been completed and transferred to the finished goods warehouse?
Credit to Work in Process.
Which of the following occurs when finished jobs are shipped to customers?
Debit to Cost of Goods Sold.
For the month of October, Janus Corporation used $30,000 worth of direct materials in production and incurred direct labor costs of $60,000. Actual manufacturing overhead costs were $40,000, whereas $45,000 was the manufacturing overhead applied to work in process. What is the amount of total manufacturing costs that would appear in the Schedule of Cost of Goods Manufactured for October?
Three amounts are added together—direct materials used in production of $30,000, direct labor of $60,000, and manufacturing overhead applied to work in process of $45,000—to yield the total manufacturing costs of $135,000.
Zimmer, Inc. started the month of January with beginning finished goods inventory of $20,000. The cost of goods manufactured during the month was $120,000 and the ending finished goods inventory was $50,000. What is the unadjusted cost of goods sold for January?
Cost of goods available for sale = Beginning finished goods inventory + Cost of goods manufactured
Cost of goods available for sale = $20,000 + $120,000 = $140,000
Unadjusted cost of goods sold = Cost of goods available for sale – Ending finished goods inventory
Unadjusted cost of goods sold = $140,000 – $50,000 = $90,000
Given: Cost of goods manufactured of $234,000; beginning finished goods inventory of $18,000; and ending finished goods inventory of $24,000, unadjusted cost of goods sold is:
unadjusted cost of goods sold = $18,000+ 234,000 - 24,000 = 228,000.
unadjusted cost of goods sold =
beginning finish good inventory + cost of goods manufactured - ending finished goods inventory.
units of product that are only partially complete are contained in the _____ ______ ________ inventory.
work in process.
completed units that have not yet been sold are found in ______ ______ inventory.
When jobs are sold their costs are transferred out of:
cost of goods manufactured:
include the manufacturing costs of goods finished during the period.
the journal entry to record the purchase of materials debits:
The journal entry to record issuing both direct and indirect materials into production debits:
Work in process and Manufacturing overhead.
When labor costs are incurred, _______ are added directly to the Work in Process account.
only direct labor costs.
Predetermined overhead rate =
estimated manufacturing overhead divided by estimated allocation base.
The journal entry to record accrued property taxes for a factory buildings debits:
Manufacturing overhead and credits Property taxes payable.
Frank, Inc. recognized $20,000 in depreciation on factory equipment. The journal entry would debit:
Manufacturing overhead $20,000 and credit accumulated depreciation 20,000.
The journal entry to record $10,000 in manufacturing overhead applied to Job #40 debits:
Work in process $10,00 and credits manufacturing overhead $10,000.
Which of the following is a clearing account?
The journal entry to record depreciation on office equipment debits:
Depreciation expense and credits accumlated depreciation.
The journal entry to record general selling and administrative costs debits:
an expense account and credit cash or a liability.
when a job is completed, which account is credited?
work in process
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:
1,000 units = 200,000 cost.
600 units = x
$200,000/1000 x 600 = $120,000.
Milton Corporation sold goods costing $50,000 for $75,000. Journal entries to be made could include entries debiting:
cost of goods sold for $50,000 and accounts receivable for $75,000.
True or false: Period costs flow from Finished Goods to Cost of Goods Sold.