ACC 200 FINAL VERIFIED STUDY GUIDE
Inventory Accounts - Answers - Raw Materials, WIP (Work in Process) Inventory,
Finished Goods, Overhead
All have Debit Increasing, Credit Decreasing
Raw material T-account - Answers - Debit-> Beginning Balance, Materials Purchased
Credit-> Direct Materials, Indirect Materials
WIP Inventory T-Account - Answers - Debit:
Beg. WIP inventory
+ Direct Materials used
+ Direct Labor used
+ Applied Overhead
Credit:
- Finished Goods
Finished Goods T-Account - Answers - Debit:
Beginning Balance
+Finished Goods
Credit:
-Sold Goods
Overhead T-Account - Answers - Debit:
+Indirect Labor
+Indirect Materials
+Other indirect costs (rent, utilities, etc)
Credit:
-Applied Overhead
Putting Direct materials from raw materials inventory into production - Answers - Work-
in-Process Inventory DEBIT
Raw Materials Inventory CREDIT
Putting indirect materials from raw materials inventory into production- Actual Overhead
Cost - Answers - Overhead DEBIT
Raw Materials Inventory CREDIT
, Applied Manufacturing Overhead into Work-in-Process Inventory - Answers - Work-in-
Process inventory DEBIT
Overhead CREDIT
Finished goods transferred from Work-in-Process Inventory to Finished Goods
Inventory - Answers - Finished Goods Inventory DEBIT
Work-In-Process Inventory CREDIT
Finished Goods Sold - Answers - Cost of Goods Sold DEBIT
Finished Goods Inventory CREDIT
Predetermined Overhead Allocation Rate - Answers - Driver-> Almost ALWAYS direct
labor hours
(total expected overhead costs)/(total expected driver level)
Expected Overhead Examples - Answers - Indirect labor, Indirect materials, factory
utilities, depreciation on manufacturing equipment
NOT Administration costs or depreciation! Only costs occurring in the factory
Applied Overhead - Answers - Predetermined overhead rate x actual driver level used
Journal Entry for Applied Overhead - Answers - WIP Inventory DEBIT
Overhead CREDIT
Overhead over/under - Answers - DEBIT-- Actual Overhead (How much cost actually
incurred)
CREDIT-- Applied Overhead (How much cost expected to occur)
Under-Applied-> Actual Overhead MORE than Applied Overhead
Over-Applied-> Actual Overhead LESS than applied overhead
Under-Appllied/Over-Applied Closing Statements - Answers - Under:
DEBIT Costs of Goods Sold
CREDIT Overhead
Over:
DEBIT Overhead
Inventory Accounts - Answers - Raw Materials, WIP (Work in Process) Inventory,
Finished Goods, Overhead
All have Debit Increasing, Credit Decreasing
Raw material T-account - Answers - Debit-> Beginning Balance, Materials Purchased
Credit-> Direct Materials, Indirect Materials
WIP Inventory T-Account - Answers - Debit:
Beg. WIP inventory
+ Direct Materials used
+ Direct Labor used
+ Applied Overhead
Credit:
- Finished Goods
Finished Goods T-Account - Answers - Debit:
Beginning Balance
+Finished Goods
Credit:
-Sold Goods
Overhead T-Account - Answers - Debit:
+Indirect Labor
+Indirect Materials
+Other indirect costs (rent, utilities, etc)
Credit:
-Applied Overhead
Putting Direct materials from raw materials inventory into production - Answers - Work-
in-Process Inventory DEBIT
Raw Materials Inventory CREDIT
Putting indirect materials from raw materials inventory into production- Actual Overhead
Cost - Answers - Overhead DEBIT
Raw Materials Inventory CREDIT
, Applied Manufacturing Overhead into Work-in-Process Inventory - Answers - Work-in-
Process inventory DEBIT
Overhead CREDIT
Finished goods transferred from Work-in-Process Inventory to Finished Goods
Inventory - Answers - Finished Goods Inventory DEBIT
Work-In-Process Inventory CREDIT
Finished Goods Sold - Answers - Cost of Goods Sold DEBIT
Finished Goods Inventory CREDIT
Predetermined Overhead Allocation Rate - Answers - Driver-> Almost ALWAYS direct
labor hours
(total expected overhead costs)/(total expected driver level)
Expected Overhead Examples - Answers - Indirect labor, Indirect materials, factory
utilities, depreciation on manufacturing equipment
NOT Administration costs or depreciation! Only costs occurring in the factory
Applied Overhead - Answers - Predetermined overhead rate x actual driver level used
Journal Entry for Applied Overhead - Answers - WIP Inventory DEBIT
Overhead CREDIT
Overhead over/under - Answers - DEBIT-- Actual Overhead (How much cost actually
incurred)
CREDIT-- Applied Overhead (How much cost expected to occur)
Under-Applied-> Actual Overhead MORE than Applied Overhead
Over-Applied-> Actual Overhead LESS than applied overhead
Under-Appllied/Over-Applied Closing Statements - Answers - Under:
DEBIT Costs of Goods Sold
CREDIT Overhead
Over:
DEBIT Overhead
