Concept introduction:
Work in Progress inventory means the stock which is still in the process of production.
Finished Goods inventory means those goods on which the work of production is completed, and they are available for sale.
Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.
Manufacturing
Requirement-1:
To prepare:
Necessary
Concept introduction:
Work in Progress inventory means the stock which is still in the process of production the work on these goods still not completed.
Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.
Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.
Manufacturing overhead are applied to the process of production on the basis of various methods but the actual manufacturing overhead are different from the applied manufacturing overhead. So the difference between actual and applied is transferred to the cost of goods sold account.
Requirement-2:
To prepare:
Pass journal of transfer of overhead balance to cost of goods sold account.
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Managerial Accounting
- A summary of materials requisition slips and time tickets, along with the overhead allocation, show these costs: Prepare an entry to record the assignment of direct material to work in process. Prepare an entry to record the assignment of direct labor to work in process. Prepare an entry to record the assignment of manufacturing overhead to work in process.arrow_forwardRex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity.arrow_forwardRocks Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity.arrow_forward
- Why is the manufacturing overhead account debited as expenses are recognized and then credited when overhead is applied?arrow_forwardA summary of material requisition slips and time tickets, along with the overhead allocation, show these costs: Prepare an entry to record the assignment of direct material to work in process. Prepare an entry to record the assignment of direct labor to work in process. Prepare an entry to record the assignment of manufacturing overhead to work in process.arrow_forwardIn a job order cost system, overhead applied is debited to which account? A. work in process inventory B. finished goods inventory C. manufacturing overhead D. cost of goods soldarrow_forward
- b) State the journal entries necessary to record the following transactions in the general journal.(i) Total materials issued to production(ii) Manufacturing labour incurred(iii)Assign manufacturing labour to the appropriate accountsarrow_forwardRequired: 1. Prepare journal entries to record the transactions given above. 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000. b. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000. Manufacturing Overhead C. Beginning balance d. Complete this question by entering your answers in the tabs below. Required 1 Required 2 e. Debit Ending balance ✓ ✓ ✓ 38,200✔ 22,000✔ 106,000 ✓ 130,000✔ X Answer is not complete. Credit 380,000 X 83,800 Beginning balance b. C. f. Debit Ending balance Credit 512,000 Xarrow_forwardREQUIRED: Entries in general journal form to record:a. Actual overhead cost incurredb. Total applied overhead cost charged to productionc. Cost of completed units (use three work in process accounts; show computation)arrow_forward
- Please solve this MCQs The journal entry to record actual manufacturing overhead for indirect labor debits Manufacturing Overhead Control and credits Work-in-Process inventory. True Falsearrow_forwardPrepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.arrow_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
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