1. The entry to record direct labor costs into production in a job order cost accounting system is _______.
a) debit Factory Overhead, credit Work in Process
b) debit Finished Goods, credit Wages Payable
c) debit Work in Process, credit Wages Payable
d) debit Factory Overhead, credit Wages Payable
2. The recording of the jobs shipped and customers billed would include a debit to ________.
a) Accounts Payable
c) Finished Goods
d) Cost of Goods Sold
3. A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 45,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 46,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
a) $17,000 overapplied
b) $17,000 underapplied
c) $9,200 overapplied
d) $9,200 underapplied
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