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When a job is completed, the journal entry involves a: debit to work in process inven

When a job is completed, the journal entry involves a: debit to work in process inven

 When a job is completed, the journal entry involves a:

A) debit to work in process inventory and a credit to finished goods inventory.

B) debit to finished goods inventory and a credit to work in process inventory.

C) debit to cost of goods sold and a credit to finished goods inventory.

D) debit to finished goods and a credit to cost of goods sold.

52) Here is selected data for Lorelei Corporation:

Cost of raw material purchased

$75,000

Cost of requisitioned direct materials

    41,000

Cost of requisitioned indirect materials

2,000

Direct labor

75,000

Manufacturing overhead incurred

    95,000

Cost of goods completed

  226,750

Cost of goods sold

138,000

Beginning raw materials inventory

    15,000

Beginning work in process inventory

32,000

Beginning finished goods inventory

31,000

Manufacturing overhead allocation rate (based on direct labor)

       125%

The journal entry to transfer completed goods to the finished goods inventory account would include a:

A) debit to work in process inventory for $226,750.

B) debit to finished goods inventory for $227,875.

C) credit to work in process inventory for $227,875.

D) debit to finished goods for $226,750.

53) Here is selected data for Lorelei Corporation:

Cost of raw material purchased

$75,000

Cost of requisitioned direct materials

    41,000

Cost of requisitioned indirect materials

2,000

Direct labor

75,000

Manufacturing overhead incurred

    95,000

Cost of goods completed

  226,750

Cost of goods sold

138,000

Beginning raw materials inventory

    15,000

Beginning work in process inventory

32,000

Beginning finished goods inventory

31,000

Manufacturing overhead allocation rate (based on direct labor)

       125%

 

The journal entry to close manufacturing overhead would include a:

A) credit to manufacturing overhead for $1,250.

B) debit to work in process inventory for $1,250.

C) debit to manufacturing overhead for $1,250.

D) credit to cost of goods sold for $1,250.

54) Here is selected data for Lorelei Corporation:

Cost of raw material purchased

$75,000

Cost of requisitioned direct materials

    41,000

Cost of requisitioned indirect materials

2,000

Direct labor

75,000

Manufacturing overhead incurred

    95,000

Cost of goods completed

  226,750

Cost of goods sold

138,000

Beginning raw materials inventory

    15,000

Beginning work in process inventory

32,000

Beginning finished goods inventory

31,000

Manufacturing overhead allocation rate (based on direct labor)

       125%

 

The journal entry to close manufacturing overhead would include a:

A) debit to manufacturing overhead for $1,250.

B) debit to work in process inventory for $1,250.

C) credit to work in process inventory for $1,250.

D) debit to cost of goods sold for $1,250.

55) Daniel Company uses a job cost system. The overhead account shows a $4,500 overallocated balance at the end of the year. Actual overhead incurred was $95,000. Other balances are:

Ending raw materials $10,000

Work in process inventory at end of year 30,000

Finished goods inventory at end of year 45,000

Cost of goods sold for year $275,000

The entry to close manufacturing overhead would include a:

A) debit to manufacturing overhead for $4,500.

B) debit to work in process inventory for $4,500.

C) debit to cost of goods sold for $4,500.

D) credit to work in process for $4,500.

56) ABC uses job costing. Actual manufacturing overhead for the period is $19,600 while allocated manufacturing overhead is $18,700. What entry will close the manufacturing overhead balance?

A) Debit manufacturing overhead and credit work in process for $900

B) Debit manufacturing overhead and credit cost of goods sold for $900

C) Debit cost of goods sold and credit finished goods inventory for $900

D) Debit cost of goods sold and credit manufacturing overhead for $900

57) A company has overallocated manufacturing overhead by $1,000. The entry to close manufacturing overhead account would be to:

A) debit manufacturing overhead and credit work in process for $1,000.

B) debit manufacturing overhead and credit cost of goods sold for $1,000.

C) debit cost of goods sold and credit manufacturing overhead for $1,000.

D) debit cost of goods sold and credit finished goods inventory for $10,000

58) Manufacturing overhead has an underallocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000.

Which of these accounts would have an ending credit balance?

A) Raw materials inventory

B) Finished goods inventory

C) Work in process inventory

D)  None of the above

59) Manufacturing overhead has an underallocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000.

Using this information, which account would have an opening credit balance?

A) Raw materials inventory

B) Finished goods inventory

C) Work in process inventory

D) None of the above

Tripti 07-Dec-2019

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