1,o 6o The following transactions took place during the month: December 2: Issue

Question

1,o 6o The following transactions took place during the month: December 2: Issued direct materials $39,000 and indirect materials $6000 to production December 15: Incurred $5000 and $4000 toward factory's direct labor cost and indirect labor cost, respectively What should be the balance in the Work- in- Process Inventory following these transactions? A) $119,000 B) $69,000 C) $80,000 D) $79,000 6) At the end of the year, Metro, Inc. has an unadjusted credit balance in the Manufacturing Overhead account of $890. Which of the following is the year-end adjusting entry needed to adjust the 6) account? A) A debit to Manufacturing Overhead of $890 and a creditto Finished Goods Inventory of $890 B) A debit to Manufacturing Overhead of $890 and a credit to Cost of Goods Sold of $890 C) A debit to Cost of Goods Sold of $890 and a credit to Finished Goods Inventory of $890 D) A debit to Cost of Goods Sold of $890 and a credit to Manufacturing Overhead of $890 7) 7) The four- steps of tracking product costs in a process costing system are accumulate, assign, allocate, and adjust B) arrive, analyze, assume, and allocate C) assign, analyze, approximate, and allocate D) verify, analyze, record, and adjust

Explanation / Answer

Q6.

Answer is B. Debits Manufacturing overheads by $ 890 and credit Cost of goods sold by $ 890

The explanation is as follows:

Journal entry for closing the manufacturing overheads accounthaving credit balance of $ 890 is as follows:

Manufacturing overheads Dr.      $890

Cost of Goods sold Cr.                         $890

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