Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

On which side of the Manufacturing Overhead account is applied manufacturing overhead recorded?

Neither side

Debit side

Credit side

Both sides

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Verified step by step guidance

Understand the concept of manufacturing overhead: Manufacturing overhead includes all indirect costs associated with production, such as factory utilities, depreciation on equipment, and salaries of maintenance staff.

Learn the accounting treatment for applied manufacturing overhead: Applied manufacturing overhead refers to the estimated overhead costs allocated to jobs or products based on a predetermined overhead rate.

Recognize the role of the Manufacturing Overhead account: This account is used to track both actual overhead costs incurred and applied overhead costs. Applied overhead is recorded to match the estimated costs with production activities.

Determine the correct side for applied manufacturing overhead: Applied manufacturing overhead is recorded on the credit side of the Manufacturing Overhead account because it reduces the balance of overhead costs that need to be allocated.

Understand the reasoning: The credit entry represents the allocation of overhead to jobs or products, effectively transferring the cost from the Manufacturing Overhead account to Work-in-Process Inventory or another relevant account.