What is the journal entry to record the direct labor summarized on the labor dis
ID: 2492634 • Letter: W
Question
What is the journal entry to record the direct labor summarized on the labor distribution report? A. Debit Finished Goods; credit Payroll B. Debit Work-in-Process; credit Payroll C. Debit Payroll; credit Direct Labor D. Debit Payroll; credit Cash
Raw material inventory appears on the
A. balance sheet.
B. income statement.
C. cost of goods manufactured statement.
D. Both a and c
Omega.com sold 25 jet skis for $7,000, which cost $5,000. The entry to record the sale would include a
A. credit to Finished Goods Inventory for $5,000.
B. credit to Sales for $7,000.
C. debit to Cost of Goods Sold for $5,000.
D. All of the above
What is the journal entry to record issuing raw materials from the storeroom?
A. Debit Raw Materials Inventory; credit Work-in-Process
B. Debit Overhead—Control; credit Work-in-Process
C. Debit Work-in-Process; credit Overhead—Control
D. Debit Work-in-Process; credit Raw Materials Inventory
If direct labor for the month is $80,000 and overhead is applied based on 75% of direct labor dollars, what is the entry to apply overhead?
A. Debit Work-in-Process Inventory $80,000; credit Payroll $80,000
B. Debit Overhead—Applied $60,000; credit Work-in-Process Inventory $60,000
C. Debit Work-in-Process Inventory $60,000; credit Overhead—Applied $60,000
D. Debit Work-in-Process Inventory $80,000; credit Overhead—Applied $80,000
A. balance sheet.
B. income statement.
C. cost of goods manufactured statement.
D. Both a and c
Omega.com sold 25 jet skis for $7,000, which cost $5,000. The entry to record the sale would include a
A. credit to Finished Goods Inventory for $5,000.
B. credit to Sales for $7,000.
C. debit to Cost of Goods Sold for $5,000.
D. All of the above
What is the journal entry to record issuing raw materials from the storeroom?
A. Debit Raw Materials Inventory; credit Work-in-Process
B. Debit Overhead—Control; credit Work-in-Process
C. Debit Work-in-Process; credit Overhead—Control
D. Debit Work-in-Process; credit Raw Materials Inventory
If direct labor for the month is $80,000 and overhead is applied based on 75% of direct labor dollars, what is the entry to apply overhead?
A. Debit Work-in-Process Inventory $80,000; credit Payroll $80,000
B. Debit Overhead—Applied $60,000; credit Work-in-Process Inventory $60,000
C. Debit Work-in-Process Inventory $60,000; credit Overhead—Applied $60,000
D. Debit Work-in-Process Inventory $80,000; credit Overhead—Applied $80,000
Explanation / Answer
1.
B. Debit Work-in-Process; credit Payroll
(Being Labor Cost summarized from Labor distribution Report recorded in books & not paid yet)
2.
D. Raw material inventory appears on the Both Balance Sheet & Cost of Goods Manufactured Statement.
3.
The entry to record sales is:
Account Receivable-Dr.
Cost of Goods Sold-Dr.
To SAles
To Inventory
Thus, The right option is D i.e All of the above
4.
journal entry to record issuing raw materials from the storeroom is
D. Debit Work-in-Process; credit Raw Materials Inventory
5.
Since applied overhead is 75% of $80,000. Therefore, entry to apply overhead will be:
C. Debit Work-in-Process Inventory $60,000; credit Overhead—Applied $60,000
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