ACCT 241 Week 3 Assignment Help 2

ACCT 241 Week 3 Assignment Help 2 | American University 

1. Required information

We discuss the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. We observe how product costs flow through inventories on the balance sheet and costs of goods manufactured schedule and then move on to cost of goods sold in the income statement. We will also explain how to calculate under applied or over applied Manufacturing Overhead cost and prepare journal entries to close its balance to the appropriate accounts.

Knowledge Check 01

All of the following are product costs except ________.

• manufacturing overhead costs

• raw materials

• sales commissions 

• direct labor

2. Required information

We discuss the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. We observe how product costs flow through inventories on the balance sheet and costs of goods manufactured schedule and then move on to cost of goods sold in the income statement. We will also explain how to calculate under  applied or over applied Manufacturing Overhead cost and prepare journal entries to close its balance to the appropriate accounts.

Knowledge Check 02

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 and credit Raw Materials.

• Debit Work in Process, debit Manufacturing Overhead, and credit Direct Materials.

• Debit Work in Process, debit Manufacturing Overhead, and credit Raw Materials. 

• Debit Manufacturing Overhead and credit Raw Materials.

3. Required information

We discuss the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. We observe how product costs flow through inventories on the balance sheet and costs of goods manufactured schedule and then move on to cost of goods sold in the income statement. We will also explain how to calculate under applied or over applied Manufacturing Overhead cost and prepare journal entries to close its balance to the appropriate accounts.

Knowledge Check 03

Which of the following best describes the journal entry to record the use of direct and indirect labor in production?

• Debit Work in Process and credit Salaries and Wages Payable.

• Debit Work in Process, debit Manufacturing Overhead, and credit Direct Labor.

• Debit Work in Process, debit Manufacturing Overhead, and credit Salaries and Wages        Payable. 

• Debit Manufacturing Overhead and credit Salaries and Wages Payable.

4. Required information

We discuss the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. We observe how product costs flow through inventories on the balance sheet and costs of goods manufactured schedule and then move on to cost of goods sold in the income statement. We will also explain how to calculate underapplied or overapplied Manufacturing Overhead cost and prepare journal entries to close its balance to the appropriate accounts.

Knowledge Check 04

Which of the following occurs when manufacturing overhead is applied to Work in Process?

• Debit to Cost of Goods Sold.

• Debit to Manufacturing Overhead. 

• Credit to Work in Process.

• Credit to Manufacturing Overhead.

5. Required information

We discuss the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. We observe how product costs flow through inventories on the balance sheet and costs of goods manufactured schedule and then move on to cost of goods sold in the income statement. We will also explain how to calculate underapplied or overapplied Manufacturing Overhead cost and prepare journal entries to close its balance to the appropriate accounts.

Knowledge Check 05

When companies incur selling and administrative costs,those costs ________.

• should be treated as product costs

• do not flow through inventories on the balance sheet 

• should flow through the Manufacturing Overhead account

• should flow through the Work in Process account

6. Required information

We discuss the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. We observe how product costs flow through inventories on the balance sheet and costs of goods manufactured schedule and then move on to cost of goods sold in the income statement. We will also explain how to calculate underapplied or overapplied Manufacturing Overhead cost and prepare journal entries to close its balance to the appropriate accounts.

Knowledge Check 06

Which of the following occurs when a job has been completed and transferred to the finished goods warehouse?

• Debit to Cost of Goods Manufactured.

• Debit to Cost of Goods Sold.

• Credit to Finished Goods.

• Credit to Work in Process. 

7. Required information

We discuss the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. We observe how product costs flow through inventories on the balance sheet and costs of goods manufactured schedule and then move on to cost of goods sold in the income statement. We will also explain how to calculate under applied or over applied Manufacturing Overhead cost and prepare journal entries to close its balance to the appropriate accounts.

Knowledge Check 07

Which of the following occurs when finished jobs are shipped to customers?

• Debit to Cost of Goods Sold. 

• Debit to Finished Goods.

• Debit to Work in Process.

• Credit to Raw Materials.

8. Required information

We explain how to use T-accounts to show the flow of costs in a job-order costing system. Direct material costs and direct labor costs are charged to Work in Process. Indirect material costs and indirect labor costs are charged to Manufacturing Overhead. Finally, Manufacturing Overhead is applied to the Work in Process account at the predetermined overhead rate.

Knowledge Check

For each of the five transactions described below, use the dropdown boxes to indicate which account should be debited and which account should be credited.

1. Direct materials are issued into production for a specific job.  

2. Salary of the Production Supervisor is payable.

3. Lubricating oil, waste cotton, and solder are used in the factory.

4. The wages of direct laborers who worked on a particular job are payable.

5. Manufacturing overhead is applied to jobs using a predetermined overhead rate.

9. Required information

We explain the preparation of schedules of cost of goods manufactured and cost of goods sold as well as an income statement. The schedule of cost of goods manufactured contains three elements of product costs--direct materials, direct labor, and manufacturing overhead--and it summarizes the portions of those costs that remain in ending Work in Process inventory and that are transferred out of Work in Process into Finished Goods. The schedule of cost of goods sold also contains three elements of product costs--direct materials, direct labor, and manufacturing overhead--and it summarizes the portions of those costs that remain in ending Finished Goods inventory and that are transferred out of Finished Goods into Cost of Goods Sold.

Knowledge Check 01

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?

• $90,000

• $130,000

• $135,000 

• $175,000

10. Required information

We explain the preparation of schedules of cost of goods manufactured and cost of goods sold as well as an income statement. The schedule of cost of goods manufactured contains three elements of product costs--direct materials, direct labor, and manufacturing overhead--and it summarizes the portions of those costs that remain in ending Work in Process inventory and that are transferred out of Work in Process into Finished Goods. The schedule of cost of goods sold also contains three elements of product costs--direct materials, direct labor, and manufacturing overhead--and it summarizes the portions of those costs that remain in ending Finished Goods inventory and that are transferred out of Finished Goods into Cost of Goods Sold.

Knowledge Check 01

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?

• $90,000 

• $120,000

• $140,000

• $150,000

11. Required information

We determine the amount of under applied or over applied overhead and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. We compute the under applied or over applied overhead by taking the difference between actual total manufacturing cost and total manufacturing overhead applied. The balance of under or over applied overhead remaining in the manufacturing overhead account is closed either by transferring to the cost of goods sold account or by allocating among the Work in Process, Finished Goods, and Cost of Goods Sold accounts.

The following information is available for the current year ending December 31:

Manufacturing overhead applied $150,000

Actual amount of manufacturing overhead costs 120,000

________________________________________

Knowledge Check 01

What is the balance of the Manufacturing Overhead account and is overhead under applied or over applied at the end of the year?

• Credit of $30,000,over applied. 

• Credit of $30,000, under applied.

• Debit of $30,000, over applied.

• Debit of $30,000, under applied.

12. Required information

We determine the amount of under applied or over applied overhead and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. We compute the under applied or over applied overhead by taking the difference between actual total manufacturing cost and total manufacturing overhead applied. The balance of under or over applied overhead remaining in the manufacturing overhead account is closed either by transferring to the cost of goods sold account or by allocating among the Work in Process, Finished Goods, and Cost of Goods Sold accounts.

The following information is available for the current year ending December 31:

Manufacturing overhead applied $150,000  

Actual amount of manufacturing overhead costs 120,000  

Amount of overhead applied during the year that is in:  

Work in Process $37,500 25 %

Finished Goods 52,500 35 %

Cost of Goods Sold 60,000 40 %

Total overhead applied    $150,000 100 %

________________________________________

Knowledge Check 01

If the Manufacturing Overhead account is closed to Cost of Goods Sold, the related entry will ________.

• decrease the cost of goods sold by $30,000 

• increase the cost of goods sold by $30,000

• decrease the cost of goods sold by $150,000

• increase the cost of goods sold by $150,000

Knowledge Check 02

If the Manufacturing Overhead account is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold, the related entry will include a ________.

• debit to Cost of Goods Sold for $12,000

• credit to Cost of Goods Sold for $12,000 

• credit to Cost of Goods Sold for $30,000

• debit to Work in Process for $7,500