Flow of Product Costs through Accounts Assuming a routine manufacturing activity, present journal entries (account titles only) for each of the following transactions: a. Purchased material on account. Description Debit Credit Accounts payable b. Recorded wages payable (for Indirect labor) earned but not paid. Description Debit Credit Wages payable C. Requisitioned both direct material and indirect material. Description Debit Credit Work in process inventory Manufacturing overhead Materials inventory d. Assigned direct and indirect labor costs. Description Debit Credit Work in process inventory Manufacturing overhead Wages payable e. Recorded factory depreciation and accrued factory property tax. Description Debit Credit Manufacturing overhead Accumulated depreciation-factory Property taxes payable f. Applled manufacturing overhead to production. Description Debit Credit Manufacturing overhead g. Completed work on products. Description Debit Credit Work in process inventory h. Sold finished goods on account. Description Debit Credit Cost of goods sold To transfer cost to expense. To record sale of goods. L. Paid wages Debit Credit Description Accounts receivable To pay wages earned.

Flow of Product Costs through Accounts Assuming a routine manufacturing activity, present journal entries (account titles only) for each of the following transactions: a. Purchased material on account. Description Debit Credit Accounts payable b. Recorded wages payable (for Indirect labor) earned but not paid. Description Debit Credit Wages payable C. Requisitioned both direct material and indirect material. Description Debit Credit Work in process inventory Manufacturing overhead Materials inventory d. Assigned direct and indirect labor costs. Description Debit Credit Work in process inventory Manufacturing overhead Wages payable e. Recorded factory depreciation and accrued factory property tax. Description Debit Credit Manufacturing overhead Accumulated depreciation-factory Property taxes payable f. Applled manufacturing overhead to production. Description Debit Credit Manufacturing overhead g. Completed work on products. Description Debit Credit Work in process inventory h. Sold finished goods on account. Description Debit Credit Cost of goods sold To transfer cost to expense. To record sale of goods. L. Paid wages Debit Credit Description Accounts receivable To pay wages earned.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

A manufacturer reports three activities: assembling components into products; product design; and sales order processing. Determine whether each of the following cost drivers relates to assembly, design, or order processing. Cost Driver 1. Direct labor hours to assemble components 2. Number of design changes 3. Number of components assembled 4. Number of design hours 5. Number of shipments made 6. Number of sales orders processed Activity
Which of the following accounts would be debited in the journal entry to record the issuance of direct materials? O A. Cost of Goods Sold O B. Finished Goods Inventory OC. Raw Materials Inventory O D. Work-in-Process Inventory
Multiple choice
based on the attached what is the answer?
9. The entry to record a transfer of direct materials for use in production would include a debit to which account? O finished goods inventory O materials inventory O work-in-process inventory O cost of goods manufactured
The entry to record actual manufacturing overhead incurred in a processing department would include a: a) credit to manufacturing overhead b) debit to work in process inventory c) credit to work in process inventory d) debit to manufacturing overhead
system Which accounts can we find the cost of goods manufactured? (check all that apply) Direct Material Direct Labor Overhead Work in Process Finished Goods Cost of Goods Sold SUBMIT
During the accounting period, Work in Process Inventory will be debited for Sales Salaries Work sent to Completed Goods DirectLabor Costs
Identify each item as job order costing or process costing. Job/Process One Work-in-Porcess Inventory account. Production cost reports Cost accumulated by process Job cost sheets Manufactures homogenous products Multiple Work-in-Porcess Inventory accounts. Costs transferred at the end of the period Manufactures batches of unique products or provides specialized services.
Use the information to prepare a schedule of cost of goods manufactured and an income statement. Assume no indirect materials are used and all amounts are shown in millions.
Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.
As production takes place, all material costs are added to the: Work-in-process Inventory account Manufacturing-Overhead inventory account Cost of goods sold account Finished goods inventory account