Chapter 2 Flashcards
Labor costs that are easily traced to a job are called
Direct labor costs
Manufacturing cost.
Indirect cost.
Includes materials and labor.
Manufacturing overhead.
- Cost of goods manufactured.
- Total manufacturing costs
- Add: Beginning work in process inventory.
- Deduct: Ending work in process inventory
Schedule of costs of goods manufactured in order
1
3
4
2
Fixed manufacturing costs.
Variable manufacturing costs.
Absorption costing.
What is debated in the journal entry to record the purchase of materials?
Raw materials
Manufacturing overhead is debited
Actual overhead is incurred
Manufacturing overhead is credited
A job is completed
Manufacturing overhead is closed
Period ends
Which is credited in the journal entry to record labor costs.
Salaries and wages payable
Factory utilities
Factory rent
Supervisor salary
Manufacturing overhead
Jobs that are not easily traced
Manufacturing overhead
Direct labor.
Direct materials.
Can they be easily traced?
Yes
A factor that causes overhead costs to occur
Cost driver
The schedule of cost of goods _____ summarizes the costs that remain in finished goods inventory and that have been transferred to cost of goods sold.
Sold
Predetermined overhead rate= estimated manufacturing overhead / by
Estimated allocation base
_____ consists of units that are partially complete
Work in process
Process used to assign overhead costs to products is clef overhead _____
Allocation
Debits manufacturing and credit accounts payable would be incurrence of rent on factory equipment and incurrence of factory utilities
True
Raw materials inventory at the start of the year was 27000, and at the end 25000. During the year they purchased 100000 in raw materials, including 28000 of indirect material that were out in manufacturing overhead during the period. What is was the cost of direct materials during the period?
74000
Start+ purchased - indirect materials - ending inventor You= cost of direct materials.
27000+ 100000 - 28000- 25000= 74000
Inventory that consist of completed units that haven’t been sold
Finished goods
Administrative and selling costs are directly charged on the income statement
True
Denis deprecation expense and credits accumulated depreciation
Deprecation on office equipment
When a job is completed, it’s costs are transferred into
Finished goods
