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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Hankook Company employ new employee and are assigned to make Statement of Cost of Manufactured, Statement of Cost of Goods Sold, and Income Statement. The results attached on picture below Questions : a. Identify the factory overhead item and the total in USD b. Identify the period cost and the total in USD c. If there is something wrong with the income statement above, correct the income statement above so all the item cost is where it should be.
Cost of Goods Sold that are NOT part of Goods Available for Sale are included in A. Work-in-Process Inventory beginning balance B. Work-in Process Inventory ending balance C. Direct Labor D. Finished Goods Inventory ending balance Given the following data, what is the cost of goods manufactured? Beginning Raw Materials Inventory Ending Raw Materials Inventory Beginning Work-in-Process Inventory Ending Work-in-Process Inventory Beginning Finished Goods Inventory Ending Finished Goods Inventory Manufacturing Overhead Direct Labor Raw Materials used in production A. $125,000 B. $141,000 12:03 C. $146,000 D. $151,000 $6,000 9,000 12,000 17,000 3,000 5,000 21,000 30,000 95,000 12:03
: Use T-accounts to show the flow of costs in g system Which accounts are the inventory accounts? (check all that apply) Direct Labor Raw Materials Work in Process Partially Finished Goods Finished Goods Cost of Goods Sold SUBMIT
In a job order cost accounting system, the journal entry to record the flow of direct materials into production consists of a a. debit to Work in Process and a credit to Materials Ob. debit to Factory Overhead and a credit to Materials Oc. debit to Work in Process and a credit to Supplies d. debit to Materials and a credit to Work in Process
In Process Costing, before you can calculate the cost to produce a product. you must determine what the: A) units that we a company produces during an accounting period. B) units that have been finished and placed in finished goods inventory. C) a method that assigns all cost to produce a product to a job during the accounting period. D) equivalent units of production.
Journalize the entries for the following summarized operations related to production for a company using job order costing: a. Materials purchased on account b. Prepaid expenses incurred on account c. Materials requisitioned: For production orders For general factory use d. Factory labor used: On production orders For general factory purposes e. Depreciation on factory equipment f. Expiration of prepaid expenses, chargeable to factory g. Factory overhead costs incurred on account ) h. Factory overhead applied, based on machine hours i. Jobs finished j. Jobs shipped to customers: Cost Selling price (assume all sold on account) If an amount box does not require an entry, leave it blank. Show Transcribed Text a. C. f. b. d. 9. i. h. j. Show Transcribed Text Sale 3 00 00 00 00 00 000 000 00 00 - 00 00 00 00 00 Ć $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
What is the journal entry to record the cost of goods sold using a job order cost accounting system? The job was listed as finished goods but has now been sold. Group of answer choices debit finished goods, credit cost of goods sold debit finished goods, credit work in process debit cost of goods sold, credit finished goods debit work in process, credit cost of goods sold
Place the following steps required to prepare a process costing production report into their correct order. I. Reconcile the total cost of work in process inventory. II. Apply manufacturing overhead to specific jobs. III. Calculate cost per equivalent unit. IV. Record costs incurred for each job on a separate job cost sheet. V. Convert physical units into equivalent units. VI. Reconcile the number of physical units. VII. Prepare a production report. 1. 2. 3. 4. 5 List separately any step that should not be included in the process. (You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.) ■ I ✔ || IV VI iv MI V il V VI VII
n the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period. Compute the cost of direct labor used for the period. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period. In the Finished Goods Inventory T-account, insert amounts for beginning and ending balances along with cost of goods manufactured (from part 3). Solve for cost of goods sold in the period (do not consider any under- or overapplied overhead). In the Factory Overhead T-account, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead.
A. Prepare journal entries to record the transactions. B. Prepare T-accounts to show the flow of costs during the period from Materials inventory through Cost of Goods sold.
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
Choose one option for each letter that describes each of the six transactions the best A. Direct and Indirect labor costs are incurred Direct and Indirect materials are issued Factory overhead is applied B. Direct and Indirect labor costs are incurred Direct and Indirect materials are issued Factory overhead is applied C. Direct and Indirect labor costs are incurred Direct and Indirect materials are issued Factory overhead is applied D. Completed goods are transferred to finished goods Goods are sold Underapplied overhead I allocated E. Completed goods are transferred to finished goods Goods are sold Underapplied overhead I allocated F. Completed goods are transferred to finished goods Goods are sold Underapplied overhead I allocated