If Manufacturing Overhead has a debit balance at the end of the period, then a. overhead has been overapplied b. the overhead assigned to Work in Process Inventory is more than the overhead incurrec c. overhead has been underapplied d. management must take corrective action

If Manufacturing Overhead has a debit balance at the end of the period, then a. overhead has been overapplied b. the overhead assigned to Work in Process Inventory is more than the overhead incurrec c. overhead has been underapplied d. management must take corrective action

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

Which of the following statements is true? (You may select more than one answer.)a. The Manufacturing Overhead account is debited when manufacturing overhead isapplied to Work in Process.b. Job cost sheets accumulate the actual overhead costs incurred to complete a job.c. When products are transferred from work in process to finished goods it results ina debit to Finished Goods and a credit to Work in Process.d. Selling expenses are applied to production using a predetermined overhead ratethat is computed at the beginning of the period.
Predetermined overhead rates are calculated: a. first and then multiplied by total actual units of the allocation base to compute the applied manufacturing overhead costs. b. based on actual total manufacturing overhead costs C. by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. d. none of the given answers is correct. e. at the end of the accounting period once the actual amount of manufacturing overhead is known.
Allocated manufacturing overhead is always recorded with a debit to work-in-process inventory. with a credit to manufacturing overhead. with a debit to raw materials inventory. Both A & B are correct.
The journal entry for adjustment of underallocated manufacturing overhead includes a: A) credit to Finished Goods Inventory. B) credit to Manufacturing Overhead. C) debit to Work-in-Process Inventory. D) credit to Cost of Goods Sold.
Which of the following journal entries is used to record fixed overhead costs allocated? O Fixed Overhead Allocated Work-in-Process Control Fixed Overhead Control Work-in-Process Control O Fixed Overhead Allocated Fixed Overhead Control O Work-in-Process Control Fixed Overhead Allocated
In the Excel, or spreadsheet, approach to recording financial transactions, the Manufacturing Overhead account is used to record two things-all actual overhead expenses and the amount of manufacturing overhead applied to production using the predetermined overhead rate. True or False True False
How is activity-based cost allocation useful to management for control and evaluation of the performance of a department? List three points only and briefly discuss them. Why is it necessary for the cost accountant to determine the percentage of completion in the ending work in process inventory at the end of the period? Briefly explain.
How do accounting books handle over and under absorption of overheads?
Describe how the over or under application of overhead should be corrected in the accounting records.
Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare thenecessary journal entry.
What affect would closing an OVERAPPLIED Manufacturing Overhead account to Cost of Goods Sold have on the accounting records? Group of answer choices A. Cost of Goods Sold would increase B. Net Income would decrease C. Cost of Goods Sold would decrease Both A & B