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ACC 255 EXAM 1 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Withdrawal of raw materials from a store room for use as indirect
and direct materials in production - correct answer -debit - work
in process
Debit- man overhead
Credit- raw materials
Use of direct and indirect labor in production - correct answer -
debit- work in process,
Debit- man overhead
Credit- salaries and wages payable
When manufacturing overhead is applied to work in process -
correct answer -debit - work in process
Credit- man overhead
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When companies incur selling and admin costs, those costs -
correct answer -do not flow through inventories on the balance
sheet
When a job is completed and transferred to the finished goods
warehouse - correct answer -credit work in process
Occurs when finished jobs are shipped to customers - correct
answer -to remove cots of units sold- we debit the cost of goods
sold
Schedule of cost of goods manufactured - correct answer -
includes: direct materials used in production + direct incurred
labor costs + man overhead applied
Unadjusted cost of goods sold - correct answer -beginning
finished goods inventory + cost of goods manufactured - ending
finished goods inventory
Overapplied overhead would result when: - correct answer -
overhead applied exceeds actual overhead costs
ACC 255 EXAM 1 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Withdrawal of raw materials from a store room for use as indirect
and direct materials in production - correct answer -debit - work
in process
Debit- man overhead
Credit- raw materials
Use of direct and indirect labor in production - correct answer -
debit- work in process,
Debit- man overhead
Credit- salaries and wages payable
When manufacturing overhead is applied to work in process -
correct answer -debit - work in process
Credit- man overhead
, Page | 2
When companies incur selling and admin costs, those costs -
correct answer -do not flow through inventories on the balance
sheet
When a job is completed and transferred to the finished goods
warehouse - correct answer -credit work in process
Occurs when finished jobs are shipped to customers - correct
answer -to remove cots of units sold- we debit the cost of goods
sold
Schedule of cost of goods manufactured - correct answer -
includes: direct materials used in production + direct incurred
labor costs + man overhead applied
Unadjusted cost of goods sold - correct answer -beginning
finished goods inventory + cost of goods manufactured - ending
finished goods inventory
Overapplied overhead would result when: - correct answer -
overhead applied exceeds actual overhead costs
