Question

5) The journal entry for cost of goods manufactured includes the costs of units that are partially completed.

6) Advertising costs should NOT be charged to the Manufacturing Overhead account.

7) The following entry would be used to record the transfer of $40,000 of direct material and $10,000 of indirect material from the storeroom to production:

Direct Materials	40,000
Indirect Materials	10,000
Raw Materials		50,000

8) Entry (16) in the below T-account represents the cost of goods manufactured transferred to Finished Goods from Work in Process.

Finished Goods
Bal.	40,000	(16)	520,000
(15)	540,000
Bal.	60,000

Answer 1

Solution 5:

False, The journal entry for cost of goods manufactured does not includes the costs of units that are partially completed.

Solution 6:

True, Advertising costs should NOT be charged to the Manufacturing Overhead account.

Solution 7:

False, following journal entry will be made for transfer of material to production:

Journal Entries
Event	Particulars	Debit	Credit
1	Work In Process Dr	$40,000.00
	Manufacturing overhead Dr	$10,000.00
	To Raw material inventory		$50,000.00
	(To record transfer of material to production)

Solution 8:

False, Entry (16) in the below T-account represents the cost of goods sold transferred to Cost of goods sold from Finished goods