Which of the following transactions could have caused the indicated effects on t
ID: 2480436 • Letter: W
Question
Which of the following transactions could have caused the indicated effects on the company's accounting equation?
a.Collection of account receivable.
b. Allocation of underapplied overhead to cost of goods sold.
c. Goods transferred from work in process to finished goods.
d. Allocation of overapplied overhead to cost of goods sold.
4. The entry to dispose of overapplied manufacturing overhead will include a:
a. Debit to manufacturing overhead and a credit to cost of goods sold.
b. Debit to cost of goods sold and a credit to manufacturing overhead.
c. Debit to cost of goods sold and a credit to finished goods.
d. Debit to finished goods and a credit to manufacturing overhead.
5.
None of these.
Purchased raw materials inventory on account.
Recognized revenue from merchandise sold for cash.
Transferred cost of goods manufactured from work in process to finished goods inventory.
9.
10. All of the following transactions lead to an entry on the job cost sheet except:
a. A materials requisition for material used on a job.
b. Application of estimated overhead to the job.
c. Indirect material used on the job.
d. Work ticket for direct labor incurred on the job.
12. Jefferson Company made the following estimates for the 2014 accounting period:
Overhead costs: $360,000
Direct labor hours: 80,000
Assume Overhead is allocated on the basis of direct labor hours.
If 30,000 hours of labor are actually used in February, how much overhead cost would be allocated to work in process during the month? (Do not round your intermediate calculations.)
a. $135,000
b. $12,000
c. $108,000
d. $155,000
13. All of the following transactions lead to an entry on the job cost sheet except:
a. Indirect material used on the job.
b. Application of estimated overhead to the job.
c. A materials requisition for material used on a job.
d. Work ticket for direct labor incurred on the job.
19. The entry to dispose of overapplied manufacturing overhead will include a:
a. Debit to manufacturing overhead and a credit to cost of goods sold.
b. Debit to cost of goods sold and a credit to manufacturing overhead.
c. Debit to cost of goods sold and a credit to finished goods.
d. Debit to finished goods and a credit to manufacturing overhead.
Explanation / Answer
Answer 1.a. Collection of account receivable. No Effect on Accounting Equation - Cash will Increased and Accounts receivables will decreased, resulting in Net Assets will remain same. Answer 1.b. Allocation of underapplied overhead to cost of goods sold. The Journal entry to be passed: Cost of Goods Sold Dr. To Manufacturing Expenses This will effect the Expenses will be increased and Retained Earnings / Net Income will reduced Answer 1. c. Goods transferred from work in process to finished goods. The Journal entry to be passed: Finished Goods Inventory Dr. To WIP This will have no effect on Accounting Equation, as one side WIP will be reduced and the Finished Goods Inventory will be Increased Answer 1. d. Allocation of overapplied overhead to cost of goods sold. The Journal entry to be passed: Manufacturing Exp Dr. To Cost of Goods Sold This will effect the Expenses will be decreased and Retained Earnings / Net Income will increased As per Chegg Guidelines, You can ask only one question at a time having four subparts. For other parts or Questions please ask it again.
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