Exam 25: Manufacturing Accounting

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

A document that is prepared to show how items have been shipped to customers is a:

Given the following accounts: -Transferred completed products to finished goods. Debit ________ Credit ________

The statement of cost of goods manufactured does NOT include:

Estimated manufacturing overhead costs were $65,000 and the number of estimated machine hours was 30,000. Actual overhead costs were $64,000 and the actual number of machine hours used was 28,500. Based on machine hours, the overhead application rate per hour is: (Round your answer to the nearest cent.)

Chico.com sold 65 jet skis on account for $7,700 which cost $5,500. The entry to record the sale would include a:

Given the following accounts: -Charged direct labor to production. Debit ________ Credit ________

A cost of goods manufactured statement should be prepared after the income statement has been prepared.

ZTY Company has direct labor for the month of $44,000. ZTY's annual overhead is $660,000 and annual direct labor cost is $1,070,000. Overhead is applied based on direct labor. What is the entry to charge direct labor to production? (Round your answer to the nearest dollar.)

If a company had a beginning balance of $5,000 in Work-in-Process Inventory, an ending balance of $7,000 in Work-in-Process Inventory and incurred direct labor costs of $8,000 and overhead costs of $4,000, then the cost of goods manufactured during the month was $20,000. Raw Materials used were $10,000.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

Describe the three elements of manufacturing cost.

Given the following accounts: -Sold products on account. Debit ________ & ________ Credit ________ & ________

Caper Manufacturing applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $153,000 and direct labor hours would be 16,000. The applied overhead rate per direct labor hour is: (Round your answer to the nearest cent.)

Manufacturing costs do NOT include:

If a company had a beginning balance of $5,000 in Raw Materials, an ending balance of $3,000 and purchased $27,000 of materials during the month, then the raw material used for the month was $29,000.

When actual overhead costs are not known until the end of the month, an estimated overhead application rate should be determined so that the total weekly costs can be applied.

Calculate the (a) cost of raw materials used and (b) total manufacturing costs from the following information. a. ________ b. ________

Cost of goods manufactured is determined before the income statement can be completed.

Total manufacturing costs incurred include: