Multiple Choice Questions:

1) The ________ account is credited to adjust for over-allocated overhead costs.

A) Cost of Goods Sold

B) Sales Revenue

C) Manufacturing Overhead

D) Finished Goods Inventory

2) The ________ account is credited to adjust for under-allocated overhead costs.

A) Cost of Goods Sold

B) Sales Revenue

C) Manufacturing Overhead

D) Finished Goods Inventory

3) Productions costs are transferred from one Work-in-Process Inventory account to the next and eventually to:

A) Manufacturing Overhead.

B) Sales Revenue.

C) Finished Goods Inventory.

D) Accounts Payable.

4) Iowa Inc. purchased raw materials for $6,000 and $25,000 for cash and on account, respectively.

Provide the journal entry to record purchase of raw materials.