Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package
11th Edition
ISBN: 9780134078946
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 19, Problem 2QC
When a manufacturing company uses direct materials, it assigns the cost by debiting
Learning Objective 2
- Direct Materials.
- Work-in-Process Inventory.
- Manufacturing Overhead.
- Raw Materials Inventory.
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below.
1. Which of the following represents the computation of direct materials cost per equivalent unit?
Total direct cost for the period divided by total equivalent units of direct materials.
Total equivalent units of direct materials divided by total direct cost for the period.
Total direct cost for the period divided by total units of direct materials.
Total units of direct materials divided by total direct cost for the period.
2. What is the conversion cost per equivalent unit, when the total conversion cost for the period is $1,225 and the total units of packaged drinking water produced during the same period is 5,000 gallons (70 percent complete).
$0.17 per gallon
$0.35 per gallon
$2.86 per gallon
None of these choices are correct.
Click to watch the Tell Me More Learning Objective 3 video and then answer the questions below.
1. The journal entry to recognize depreciation on machinery is ________.
a debit to Factory Overhead and a credit to Accumulated Depreciation
a debit to Accumulated Depreciation and a credit to Factory Overhead
a debit to Factory Overhead and a credit to Depreciation Expense
a debit to Depreciation Expense and a credit to Factory Overhead
2. Process and job order cost systems are similar in ________ manner.
recording and summarizing product costs
classifying product costs as direct materials, direct labor, and factory overhead
allocating factory overhead costs to products
All of these choices are correct.
Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below.
1. Which of the following manufacturers is most likely to use a process cost system?
Purse manufacturer
Sports drink manufacturer
Automobile manufacturer
Guitar manufacturer
2. Process and job order cost systems are similar in that both systems _______.
record and summarize product costs
classify product costs as direct materials, direct labor, and factory overhead
allocate factory overhead costs to products
All of these choices are correct.
Chapter 19 Solutions
Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package
Ch. 19 - Prob. 1QCCh. 19 - When a manufacturing company uses direct...Ch. 19 - When a manufacturing company uses indirect...Ch. 19 - When a manufacturing company uses direct labor, it...Ch. 19 - What is Gell's predetermined overhead allocation...Ch. 19 - What is Gell's actual manufacturing overhead cost?...Ch. 19 - How much manufacturing overhead would Gell...Ch. 19 - What entry would Gell make to adjust the...Ch. 19 - A manufacturing company completed work on a job....Ch. 19 - Prob. 10QC
Ch. 19 - Why do managers need to know the cost of their...Ch. 19 - What types of companies use job order costing...Ch. 19 - What types of companies use process costing...Ch. 19 - What is the purpose of a job cost record?Ch. 19 - Explain the difference between cost of goods...Ch. 19 - A job was started on May 15, completed on June 27,...Ch. 19 - Give the journal entry for raw materials purchased...Ch. 19 - What is the purpose of the raw materials...Ch. 19 - How does the use of direct and indirect materials...Ch. 19 - Give the journal entry for direct and indirect...Ch. 19 - Give five examples of manufacturing overhead...Ch. 19 - What is the predetermined overhead allocation...Ch. 19 - What is an allocation base? Give some examples.Ch. 19 - How is manufacturing overhead allocated to jobs?Ch. 19 - A completed job cost record shows the unit cost of...Ch. 19 - Explain the journal entry for the allocation of...Ch. 19 - Give the journal entry for the completion of a...Ch. 19 - Why does the sale of a completed job require two...Ch. 19 - Prob. 19RQCh. 19 - If a company incurred $5,250 in actual overhead...Ch. 19 - Refer to the previous question. Give the journal...Ch. 19 - Explain the terms accumulate, assign, allocate,...Ch. 19 - Why would the manager of a service company need to...Ch. 19 - How is the predetermined overhead allocation rate...Ch. 19 - Distinguishing between job order costing and...Ch. 19 - Prob. S19.2SECh. 19 - Prob. S19.3SECh. 19 - Prob. S19.4SECh. 19 - Prob. S19.5SECh. 19 - Prob. S19.6SECh. 19 - Prob. S19.7SECh. 19 - Prob. S19.8SECh. 19 - Prob. S19.9SECh. 19 - Prob. S19.10SECh. 19 - Prob. S19.11SECh. 19 - Prob. S19.12SECh. 19 - Prob. S19.13SECh. 19 - Prob. S19.14SECh. 19 - Distinguishing between job order costing and...Ch. 19 - Defining terminology Learning Objectives 1,2 Match...Ch. 19 - Prob. E19.17ECh. 19 - Prob. E19.18ECh. 19 - Prob. E19.19ECh. 19 - Prob. E19.20ECh. 19 - Prob. E19.21ECh. 19 - Prob. E19.22ECh. 19 - Prob. E19.23ECh. 19 - Prob. E19.24ECh. 19 - Prob. E19.25ECh. 19 - Prob. E19.26ECh. 19 - Prob. E19.27ECh. 19 - Prob. P19.28APGACh. 19 - Prob. P19.29APGACh. 19 - Prob. P19.30APGACh. 19 - Prob. P19.31APGACh. 19 - Prob. P19.32APGACh. 19 - Prob. P19.33APGACh. 19 - Prob. P19.34BPGBCh. 19 - Prob. P19.35BPGBCh. 19 - Prob. P19.36BPGBCh. 19 - Prob. P19.37BPGBCh. 19 - Prob. P19.38BPGBCh. 19 - Prob. P19.39BPGBCh. 19 - Accounting for manufacturing overhead This problem...Ch. 19 - Prob. 19.1DCCh. 19 - Prob. 19.1FC
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Click to watch the Tell Me More Learning Objective 2 video and then answer the questions below. 1. The first step in preparing a cost of production report is to _____. compute equivalent units of production determine the units to be assigned costs determine the cost per equivalent unit allocate costs to units transferred out and partially completed units 2. The last step in preparing a cost of production report is to _____. compute equivalent units of production determine the units to be assigned costs determine the cost per equivalent unit allocate costs to units transferred out and partially completed unitsarrow_forwardLearning Outcomes Addressed: This assessment item addresses the following unit learning outcomes (ULOs) as described in the Unit Outline: 1. Clear understanding of various cost terms, cost behaviour and the role of overhead cost in pricing decisions 2. Ability to apply Activity Based Costing (ABC) techniques to an actual business in order to arrive at the most accurate costing for products. requirement: kindly adress these two question in detail. (please avoid any kind of plagorism and copy past and then paraphrasing )arrow_forwardI have the following information: direct materials $250 and total manufacturing cost $700. Overhead applied to jobs at a rate of 200% of direct labor cost. This is for Chapter 2 job costing in managerial accounting. I am supposed to figure out conversion cost, direct labor cost, and manufacturing overhead. I know the formula for conversion cost= direct labor + manufacturing OH Prime cost= direct labor + direct materials How do I figure out direct labor cost with the given information? The learning objective states calcualte predetermined overhead rate, but I do not have estimated manufacturing cost and estimated labor. Can you please help? Thanks, Erica Gordonarrow_forward
- d. What was the cost of products completed during Febuary? e. What was the balance of the Work-in-Process Inventory account at the end of Fabuary? f. What was the operating profit for Febuary? Any over- or underapplied overhead is written off to Cost of Goods Sold? Please provide an explanation it would be of great help with my learning. Thank you <3arrow_forwardChoose the journal entry. 1. Direct Materials used in the production Dr Work In process Inventory; Cr Materials Inventory Dr Materials Inventory; Cr Work In process Inventory Dr Factory overhead Inventory; Cr Work In process Inventory Dr Factory overhead Inventory; Cr Materials Inventory 2.Indirect Materials used in the production Dr Factory overhead Inventory; Cr Materials Inventory Dr Materials Inventory; Cr Work In process Inventory Dr Factory overhead Inventory; Cr Work In process Inventory Dr Work In process Inventory; Cr Materials Inventory 3. Record the accrued Direct Labor Dr Factory overhead; Cr Finished goods inventory Dr Finished goods inventory; Cr Work In process Inventory Dr Work In process Inventory; Cr Salary Payable Dr Materials Inventory; Cr Work In process Inventoryarrow_forwardThe purchase of manufacturing supplies is normally recorded as a debit to Group of answer choices raw materials inventory administrative expenses work in process manufacturing overheadarrow_forward
- Concepts and terminology From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: Materials for use in production are called (supplies, materials inventory). An example of factory overhead is (electricity used to run assembly line, CEO salary).arrow_forwardCompute the ending inventory of work in process ANSWER IN EXCEL FORMarrow_forwardWhat type of cost accounting system would be most appropriate to be used by a graduation invitation printing company? Group of answer choices Not enough information to determine Preplacement cost system Process cost system Job order cost systemarrow_forward
- Question. Signify the account that should be DEBITED to record each transaction below. Group of answer choices A. The consumption of direct materials in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials B. The consumption of indirect materials in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials C. The cost of direct labor incurred in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials D. The cost of indirect labor incurred in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials E. The allocation of manufacturing…arrow_forwardChoose the journal entry 4. Record the cost of goods manufactured Dr Factory overhead; Cr Finished goods inventory Dr Work In process Inventory; Cr Finished goods Inventory Dr Finished goods inventory; Cr Work In process Inventory Dr Materials Inventory; Cr Work In process Inventory\ 5. Record the purchased Indirect Materials on account Dr Factory overhead inventory; Cr Accounts payable Dr Materials inventory; Cr Accounts payable Dr Factory overhead inventory; Cr Cash Dr Materials inventory; Cr Casharrow_forwardChoose the best answer choice for each question 1. In a process cost system, the amount of work in process inventory at the end of a period is valued by a.summing the costs remaining in each department account at the end of the period. b.summing estimated costs budgeted for the inventory during the period. c.summing direct labor costs for the period. d.summing all actual costs that flowed through the department from the beginning to the end of the period. 2. What is the journal entry for the application of Factory Overhead to Work in Process if the driver is imprinted, the rate is $1.80 per imprint, and the imprint meter reads 1,780 at the start of the day and 2,890 at the end of the day? a. Work in Process1.80 Factory Overhead1.80 b. Work in Process1,998 Factory Overhead1,998 c. Work in Process1,998 Cash1,998 d. Work in Process1,998 Depreciation Expense1,998 3. The journal entry to record applied factory overhead includes a(n) a.decrease to Work in Process. b.increase to…arrow_forward
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