Question

7

11, the formula to calculate the amo ved by the actual manufacturing overhe D ead rate times the actual manufacturing overhead incurto Llumined overhead rate divided by the actual units of allocation D. Predetermined overhead rate times the actual units of allocation base char 5. When closing overapplied manufacturing overhead to cost of goods so would be true? A. Work in process will decrease. B. Cost of goods sold will increase. C. Net income will decrease. D. Gross margin will increase. to calculate the amount is as follows: acturing overhead incurred on the particular job. lead incurred on the particular job. allocation base charged to the particular job. sation base charged to the particular job. to cost of goods sold, which of the following Job-order cost system the Work in Process account is debited with the cost of materials purchased. TRUE FALSE 7. A debit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead is overapplied. TRUE FALSE 8. Period costs are expensed as incurred, rather than going into the Work in Process account. TRUE FALSE l i nh has been completed, the goods are transferred from the production department to ... include a credit to Work in Process

Answer 1

Solution 5:

When closing over applied manufacturing overhead to cost of goods sold, Gross margin will increase because cost of goods sold will decrease.

Hence option D is correct.

Solution 6:

False, Under a job order cost system work in process account is not debited with the cost of material purchased instead same is debited for cost of material used.

Solution 7:

False, a debit balance in the manufacturing overhead at the end of year means that manufacturing overhead is under applied.

Solution 8:

True, Period costs are expensed as incurred rather than going into the Work In Process account.