For the following accounts, indicate what causes the account to increase and decrease. The first account is completed as an example. (Abbreviation used: OH=overhead.) (Click on the icon to view the accounts.) Account Is increased by: Is decreased by: Raw Materials Inventory Materials purchased Materials used Work-in-Process Inventory Direct materials used Shipping sold jobs Direct labor incurred Manufacturing overhead allocated Finished Goods InventoryCompletion of jobs Shipping sold jobs Cost of Goods Sold

Question

Mckinney

Business

27 February, 09:21

For the following accounts, indicate what causes the account to increase and decrease. The first account is completed as an example. (Abbreviation used: OH=overhead.) (Click on the icon to view the accounts.) Account Is increased by: Is decreased by: Raw Materials Inventory Materials purchased Materials used Work-in-Process Inventory Direct materials used Shipping sold jobs Direct labor incurred Manufacturing overhead allocated Finished Goods InventoryCompletion of jobs Shipping sold jobs Cost of Goods Sold

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Cantrell · Answer 1

Solution:

Account Is increased by : Is decreased by:

Raw Materials Inventory : Materials purchased Materials used

Work-in-Process Inventory: Direct materials used

Direct labor incurred : Manufacturing overhead allocated Completion of jobs

Finished Goods Inventory: Completion of jobs Shipping of sold units

Cost of Goods Sold Shipping of sold units : Adjusting entry Adjusting entry