fill in the blanks.\n1. raw materials purchased from suppliers are stored in ______ until requisitioned for…

fill in the blanks.\n1. raw materials purchased from suppliers are stored in ______ until requisitioned for use in production.\n2. direct materials are added to ______ along with direct labor and applied overhead.\n3. once units of production are complete, their manufacturing costs are transferred from work in process to ______.\n4. when units of production are sold, their associated costs are transferred from finished goods to ______ on the income statement.\n5. selling and administrative expenses are recorded as ______ on the income statement as incurred instead of units of production.\n6. manufacturing costs are applied to jobs using a/an ______.\n7. because the predetermined overhead rate is based on estimates, actual overhead cost may be more or less than actual overhead cost applied to ______.\n8. the difference between estimated predetermined overhead rate and actual overhead cost is referred to as ______, or ______ overhead.\n9. when overhead is underapplied, manufacturing overhead costs have been understated, and inventories or cost of goods sold must be adjusted (upwards, downwards).\n10. when overhead is overapplied, manufacturing overhead costs have been overstated, and inventories or costs of goods sold must be adjusted (upwards, downwards).

fill in the blanks.\n1. raw materials purchased from suppliers are stored in ______ until requisitioned for use in production.\n2. direct materials are added to ______ along with direct labor and applied overhead.\n3. once units of production are complete, their manufacturing costs are transferred from work in process to ______.\n4. when units of production are sold, their associated costs are transferred from finished goods to ______ on the income statement.\n5. selling and administrative expenses are recorded as ______ on the income statement as incurred instead of units of production.\n6. manufacturing costs are applied to jobs using a/an ______.\n7. because the predetermined overhead rate is based on estimates, actual overhead cost may be more or less than actual overhead cost applied to ______.\n8. the difference between estimated predetermined overhead rate and actual overhead cost is referred to as ______, or ______ overhead.\n9. when overhead is underapplied, manufacturing overhead costs have been understated, and inventories or cost of goods sold must be adjusted (upwards, downwards).\n10. when overhead is overapplied, manufacturing overhead costs have been overstated, and inventories or costs of goods sold must be adjusted (upwards, downwards).

Answer

Brief Explanations:

  1. Raw materials are stored in raw materials inventory before use in production.
  2. Direct materials, labor, and overhead are added to work in process.
  3. Completed units' costs transfer to finished goods.
  4. Sold units' costs transfer to cost of goods sold.
  5. Selling and administrative expenses are period costs.
  6. Manufacturing costs use a predetermined overhead rate.
  7. Actual overhead may differ from applied overhead.
  8. The difference is under - or overapplied overhead.
  9. Underapplied overhead requires upward adjustment.
  10. Overapplied overhead requires downward adjustment.

Answer:

  1. raw materials inventory
  2. work in process
  3. finished goods
  4. cost of goods sold
  5. period costs
  6. predetermined overhead rate
  7. jobs
  8. underapplied; overapplied
  9. upwards
  10. downwards