IV. Accounting for other overhead requires two types of entries. A. Other overhe

Question

IV.    Accounting for other overhead requires two types of entries.

A.     Other overhead includes plant ____________, property _____________, insurance, and _______________.

B.     To record _____________ overhead costs, debit Overhead and credit Cash or Accumulated Depreciation.

C.     To record _____________ overhead costs, debit Work in Process Inventory and credit Overhead.

D.     The actual (debits) and estimated (credits) overhead costs are ________________ at the end of the period to determine the accuracy of overhead cost recognition.  

V.     To record the transfer of ________________ units, debit Finished Goods Inventory and credit Work in Process Inventory.

VI.    When a company uses a perpetual inventory system, two accounting entries are made when products are sold.

A.     To record the sold product’s ________________, debit Accounts Receivable (or Cash) and credit Sales.  

B.     To record the sold product’s associated ____________, debit Cost of Goods Sold and credit Finished Goods Inventory.  

Explanation / Answer

1. plant maintenance and cleaning labor, plant rent, plant insurance, property taxes on the plant, plant depreciation, and the compensation of plant managers.

2. Manufacturing overhead

3.Factory Overhead.

4. netted off

5.completed

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