52) Describe the three elements of manufacturing cost.

25.2   Learning Objective 25-2


1) What is the journal entry to record issuing supplies from the storeroom?

A) Debit Overhead-Applied; credit Raw Materials Inventory

B) Debit Overhead-Control; credit Supplies Inventory

C) Debit Supplies Inventory; credit Overhead-Applied

D) Debit Overhead-Applied; credit Supplies Inventory


2) What is the journal entry to record issuing raw materials from the storeroom?

A) Debit Raw Materials Inventory; Credit Work-in-Process

B) Debit Overhead-Control; Credit Work-in-Process

C) Debit Work-in-Process; Credit Overhead-Control

D) Debit Work-in-Process; Credit Raw Materials Inventory


3) What is the journal entry to record the direct labor summarized on the labor distribution report?

A) Debit Finished Goods; credit Payroll

B) Debit Work-in-Process; credit Payroll

C) Debit Payroll; credit Direct Labor

D) Debit Payroll; credit Cash

4) In a manufacturing company, the purchase of materials on account should be recorded as follows:


Raw Material Inventory

Accounts Payable



Work-in-Process Inventory

Accounts Payable



Finished Goods Inventory

Accounts Payable



Accounts Payable

Raw Materials Inventory



5) Journal entries crediting Payroll and debiting Work-in-Process Inventory are made for:

A) administrative salaries.

B) hourly manufacturing labor.

C) foremen’s salaries.

D) raw materials.




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