exam 1

Question 1

6 The journal entry to record direct labor costs actually incurred involves a debit to the ________.

Answer 1

Work in process inventory account

Question 2

13. Morewell, Inc. used a predetermined overhead allocation rate to allocate $80,000 and $50,000 of indirect costs to Coloring Department and Mixing Department, respectively. The journal entry to record the allocation of overhead costs to the Coloring Department is ________.

Answer 2

debit Work-in-Process Inventory—Coloring, $80,000; credit Manufacturing Overhead, $80,000

Question 3

Identify the correct order of the four steps used to prepare a production cost summary (report).

Answer 3

(1)Summarize the flow of physical units;
(2) Compute the equivalent units of production output; (3) Compute the cost per equivalent unit of production;
(4) Assign costs to units completed and units in process.