What is the journal entry to record the purchase of raw materials?
Db A/P (or Cash), Cr WIP
Db A/P (or Cash), Cr RM
Db RM, Cr A/P (or Cash)
Db WIP, Cr A/P (or Cash)
What is the journal entry to record the issue of direct and indirect materials?
Db WIP (indirect) and MOH (direct), Cr RM
Db WIP (direct) and MOH (indirect), Cr RM
Db RM, Cr WIP (indirect) and MOH (direct)
Db RM, Cr WIP (direct) and MOH (indirect)
What is the journal entry to record the incurrence of direct and indirect labor?
Db Salaries & Wages Payable, Cr WIP (direct), MOH (indirect)
Db Salaries & Wages Payable, Cr Salaries & Wages Expense
Db Salaries & Wages Expense, Cr Salaries & Wages Payable
Db WIP (direct), MOH (indirect), Cr Salaries & Wages Payable
What is the journal entry to record the incurrence of miscellaneous indirect manufacturing costs (ex. factory utilities)?
Db A/P (or Cash), Cr MOH
Db A/P (or Cash), Cr WIP
Db WIP, Cr A/P (or Cash)
Db MOH, Cr A/P (or Cash)
What is the journal entry to record the recognition of property taxes to be paid and prepaid insurance that has expired?
Db MOH, Cr Property Taxes Payable and Prepaid Insurance
Db WIP, Cr Property Taxes Payable and Prepaid Insurance
Db Property Taxes Payable and Prepaid Insurance, Cr MOH
Db Property Taxes Payable and Prepaid Insurance, Cr WIP
What is the journal entry to record the recognition accumulated depreciation on manufacturing equipment and/or buildings?
Db MOH, Cr Accumulated Depreciation
Db Accumulated Depreciation, Cr MOH
Db Depreciation Expense, Cr Accumulated Depreciation
Db Accumulated Depreciation, Cr A/P
What is the journal entry to record manufacturing overhead application (applied MOH) to a job?
Db MOH, Cr FG
Db FG, Cr MOH
Db MOH, Cr WIP
Db WIP, Cr MOH
What is the journal entry to record the incurrence of non-manufacturing salaries and wages expenses?
Db Salaries Expense, Cr Salaries & Wages Payable
Db Salaries & Wages Payable, Cr MOH
Db Salaries & Wages Payable, Cr Salaries Expense
Db Salaries Expense, Cr MOH
What is the journal entry to record the recognition accumulated depreciation on non-manufacturing equipment and/or buildings?
Db Accumulated Depreciation, Cr MOH
Db Accumulated Depreciation, Cr Depreciation Expense
Db Depreciation Expense, Cr Accumulated Depreciation
Db MOH, Cr Accumulated Depreciation
What is the journal entry to record the incurrence of selling and administrative/general costs (SAG)?
Db Advertising Expense and Other SAG Expense, Cr MOH
Db MOH, Cr Advertising Expense and Other SAG Expense
Db Advertising Expense and Other SAG Expense, Cr A/P (/Cash)
Db A/P (/Cash), Cr Advertising Expense and Other SAG Expense
What is the journal entry to record the cost of goods that have been finished (cost of goods manufactured)?
Db WIP, Cr FG
Db COGS, Cr FG
Cb FG, Cr COGS
Db FG, Cr WIP
What is the journal entry to record the sale (the revenue) of goods?
Db Sales, Cr A/R (or Cash)
Db A/R (or Cash), Cr Sales
Db A/R (or Cash), Cr COGS
Db COGS, Db A/R (or Cash)
What is the journal entry to record the cost of goods that have been sold?
Db COGS, Cr Sales
Db Sales, Cr COGS
Db FG, Cr COGS
Db COGS, Cr FG
Asset (ex. inventory) accounts are increased with a _______ and decreased with a _______.
debit, credit
Liability (ex. A/P, Salaries & Wages Payable) accounts are increased with a _______ and decreased with a _______.
credit, debit
Expense (ex. Salaries Expense) accounts are increased with a _______ and decreased with a _______.
debit, credit
