question archive 1) When jobs are completed, the total cost of the job is recorded as a debit to Finished goods and a credit to Work in process
1) When jobs are completed, the total cost of the job is recorded as a debit to Finished goods and a credit to Work in process
Subject:AccountingPrice:3.87 Bought7
1) When jobs are completed, the total cost of the job is recorded as a debit to Finished goods and a credit to Work in process.
True
False
2) During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $492,000 of manufacturing costs. Overhead costs have been underallocated.
True
False
3) Overallocated manufacturing overhead occurs when the manufacturing overhead allocated to work in process inventory is less than the amount actually incurred.
True
False
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Answer:
1) TRUE,
JOURNAL ENTRY WILL BE
FINISHED GOODS INVENTORY..................................DR
WORK IN PROCESS INVENTORY
2)
TRUE,
ACTUAL OVER HEAD INCURRED = $500000
LESS ALLOCATED = ($492000)
UNDER ALLOCATION OF OVERHEAD = $8000
3)
FALSE,
OVERALLOCATED MANUFACTURING OVERHEAD OCCURS WHEN THE MANUFACTURING OVERHEAD ALLOCATED TO WORK IN PROCESS INVENTORY IS MORE THAN THE AMOUNT ACTUALLY INCURRED.
