Question

Please answer the following question. Explain answer if you can for the true and false.

ACCT-212 Assignment #2 Answer True or False for the following: Actual manufacturing costs are recorded as a credit under the manufacturing overhead T-account. The journal entry to record issuance of direct materials includes a debit to manufacturing overhead. Work in Process is debited when recording direct labor incurred. 150 completed units equal 150 equivalent units. 300 units at 10% complete equals 300 equivalent units. Complete each of the following statements with the term job order costing or the term process costing: is used by companies that produce small quantities of many different products. b. Atlantic Pacific pulverizes wood into pulp to manufacture cardboard. The company uses a system. c. To record costs of manufacturing thousands of identical files, the file manufacturer will use a system. d. Companies that produce large numbers of identical -systems for product costing. e. The computer repair service that visits your home and repairs your computer uses a system f. Apple assembles electronic parts and software to manufacture millions of iPods. Apple uses a system. g. Textbook publishers produce titles of a particular book in batches. Textbook publishers use a _system. h. A company that bottles milk into one-gallon containers uses system. i. A company that makes large quantities of one type of tank less hot water heater uses a system. j. A particular governmental agency takes bids for specific items it utilizes. Each item requires a separate bid. The agency uses a system.

Answer 1

True or False

Actual manufacturing costs are recorded as a credit under the manufacturing overhead T-account – FALSE

Actual manufacturing costs are recorded as a debit in the manufacturing overhead T-account while the manufacturing overhead applied is recorded as a credit.

The journal entry to record issuance of direct materials includes a debit to manufacturing overhead – FALSE

The journal entry to record the issuance of direct materials includes a debit to the work in process account and not to the manufacturing overhead. Indirect materials are debited to manufacturing overhead.

Work in process is debited when recording direct labor incurred – TRUE

The direct labor costs are charged to the work in process by debiting the same.

150 completed units equal 150 equivalent units – TRUE

300 units at 10% complete equals 300 equivalent units – FALSE

300 units at 10% complete equals 300 x 10% = 30 equivalent units.

Per HOMEWORKLIB RULES, the first 4 are answerable. Please post the remaining parts separately. Thank you.