Work in process 35000 manufacturing overhead 12000

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Work in Process 35,000 Manufacturing Overhead 12,000 Salaries/Wages Payable 47,000
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3-27 Mfg. Overhead Salaries and  Wages Payable Work in Process (Job Cost Sheet) l Direct    Materials l Direct  Labor l Direct  Labor l Indirect  Materials Actual Applied l Indirect Labor l Indirect Labor Recording Actual Manufacturing  Overhead l Other Overhead
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3-28 Recording Actual Manufacturing  Overhead During the month the company incurred the following actual overhead costs: 1. Utilities (heat, water, and power) $1,700 2. Depreciation of factory equipment $2,900 3. Property taxes payable on factory $1,000 Manufacturing Overhead 5,600 Utilities Payable 1,700 Accumulated Depreciation 2,900 Property Taxes Payable 1,000 (4)
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3-29 Mfg. Overhead Salaries and  Wages Payable Work in Process (Job Cost Sheet) l Direct    Materials l Direct  Labor l Direct  Labor l Indirect  Materials Actual Applied l Indirect Labor l Indirect Labor Applying Manufacturing Overhead l Other Overhead l Overhead Applied l Overhead Applied to Work in Process If actual and applied manufacturing overhead are not equal, a year-end adjustment is required.
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3-30 Applying Manufacturing Overhead Smith uses a predetermined overhead rate of $3.50 per machine-hour. During the month, 5,000 machine-hours were worked on jobs. Work in Process 17,500 Manufacturing Overhead 17,500 (5,000 machine hours × $3.50 = $17,500) (5)
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3-31 Accounting for Nonmanufacturing  Cost Nonmanufacturing costs are not assigned to  individual jobs, rather they are expensed in the  period incurred. Examples: 1. Salary expense of employees who work in a marketing, selling, or administrative capacity. 2. Advertising expenses are expensed in the period incurred.
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3-32 Accounting for Nonmanufacturing  Cost During the month, Smith incurred but has not paid sales salaries of $2,000, and advertising expense of $750. Salaries Expense 2,000 Advertising Expense 750 Salaries Payable 2,000 Accounts Payable 750 (6)
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3-33 Finished Goods Work in Process (Job Cost Sheet ) l Direct    Materials l Direct  Labor l Overhead  Applied l Cost of Goods Mfd. l Cost of Goods Mfd. Transferring Completed Units
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3-34 Transferring Completed Units During the period, Smith completed jobs with a total cost of $27,000. Finished Goods 27,000 Work in Process 27,000 (9)
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3-35 Finished Goods Cost of Goods Sold Work in Process (Job Cost Sheet) l Direct    Materials l Direct  Labor l Overhead  Applied l Cost of Goods Mfd.  l Cost of Goods Mfd.  l Cost of Goods Sold l Cost of Goods Sold Transferring Units Sold
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3-36 Transferring Units Sold Smith sold the $27,000 in Finished Goods Inventory to customers for $43,500 on account. Accounts Receivable 43,500 Sales 43,500 Cost of Goods Sold 27,000 Finished Goods 27,000 (10)
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3-37 Schedule of Cost of Goods  Manufactured: Key Concepts This schedule contains three  types of costs, namely direct  materials, direct labor, and  manufacturing overhead.
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