Premier Products uses the following account titles: A. Accounts payable B. Raw materials inventory C. Work in process inventory D. Manufacturing overhead E. Cost of goods sold F. Depreciation expense G. Accumulated depreciation H. Wages and salaries payable 1. Wages and salaries expense J. Finished goods inventory For each transaction described below, indicate which accounts would be debited and credited under a job order cost system: 1. Materials are purchased on account 2. Materials are placed into production 3. Direct labor cost is incurred 4. Depreciation is recorded on the factory equipment 5. Manufacturing overhead is applied to units of product 6. Cost of goods manufactured is recorded 7. Cost of goods sold is recorded Debit Credit

Premier Products uses the following account titles: A. Accounts payable B. Raw materials inventory C. Work in process inventory D. Manufacturing overhead E. Cost of goods sold F. Depreciation expense G. Accumulated depreciation H. Wages and salaries payable 1. Wages and salaries expense J. Finished goods inventory For each transaction described below, indicate which accounts would be debited and credited under a job order cost system: 1. Materials are purchased on account 2. Materials are placed into production 3. Direct labor cost is incurred 4. Depreciation is recorded on the factory equipment 5. Manufacturing overhead is applied to units of product 6. Cost of goods manufactured is recorded 7. Cost of goods sold is recorded Debit Credit

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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Journalize the entries to record the following summarized operations related to production for a company using a job order cost system: a. b. a. Materials purchased on account b. C. C. d. e. f. 9. h. i. j. Prepaid expenses incurred on account Materials requisitioned: For production orders For general factory use Factory labor used: If an amount box does not require an entry, leave it blank. On production orders For general factory purposes Depreciation on factory equipment Expiration of prepaid expenses, chargeable to factory Factory overhead costs incurred on account Factory overhead applied, based on machine hours Jobs finished Jobs shipped to customers: Cost Selling price (assume all sold on account) J $176,000 12,200 153,700 2,700 141,300 12,000 37,000 6,100 76,000 105,300 415,300 412,000 638,000
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.
Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. 2. 3. 4. 5. Purchased additional raw materials of $75,600 on account. Incurred factory labor costs of $58,800. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various…
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.
Assign indirect labor cost is recorded with a Select one: O a. debit to Labor Cost. O b. debit to Work in Process Inventory. O C. debit to job cost sheets. d. debit to Manufacturing Overhead.
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 materlal 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. Appled manufacturing overhead to production. Description Debit Credit Manufacturing overhead g. Completed work on products. Description Debit Credit Work in process inventory h. Sold…
In a job-order costing system, manufacturing overhead applied is recorded as a credit to: O a. None of the given answer is correct O b. Manufacturing Overhead. Work in Process inventory. O d. Finished Goods inventory. Fi е. Cost of Goods Sold.
As production takes place, all manufacturing costs are added to the: A. Manufacturing Overhead Account B. Cost of Goods Sold Account O C. Finished Goods Inventory D. Work in Process Inventory Account
The entry to record the purchase of raw materials on account using a job costing system would include a credit to Work-in-Process Inventory account. debit to Accounts Payable account. debit to Work-in-Process Inventory account. debit to Raw Materials Inventory account.
Required information [The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied $ 28,000 21,000 10,500 $ 40,000 14,000 7,000 137,000 101,000 220,000 151,000 $ 110,000 100,000 Finished Finished Status on April 30 In procesS (sold) (unsold) Additional Information a. Raw Materials Inventory has a March 31 balance of $80000. b. Raw materials purchases in April are $520,000 and total factory payroll cost in April is $372.000. c. Actual overhead costs incurred in April are indirect materials, $54,000; indirect labor, $20,000; factory rent, $34,0003; factory utilities, $22,000; and factory equipment depreciation, $56.000, d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for…
Manufacturing overhead applied is added to direct labor incurred and to what other item to equal total manufacturing costs for the period? OA) Goods available for sale B) Raw materials purchased OC) Work in Process inventory D) Direct materials used
In a process cost system, factory depreciation expense incurred is debited to ________.A. finished goods inventoryB. work in process inventoryC. manufacturing overheadD. cost of goods sold