ACCOUNTING EXAM 1

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is

$62 per machine hour

The entry to record the flow of direct labor costs into production in a job order cost accounting system is

debit Work in Process, credit Wages Payable

At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/under applied overhead into Cost of Goods Sold would cause net income to

increase by $1,700,000

Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as

period costs

In a job order cost accounting system, the entry to record the flow of direct materials into production is

to debit Work in Process, and credit Materials

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

$500,000 over applied

Work in process, beginning $14,000; Work in process, ending, $20,000; Direct labor costs $4,000; Cost of goods manufactured $8,000; Factory overhead $8,000. Direct materials used is

$2,000

Work in process inventory increased by $20,000 during the current year (from beginning to end). Cost of goods manufactured was $180,000. Total manufacturing costs incurred are

$200,000

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The finished goods inventory balance decreased by $7,400 from January 1 to December 31. Cost of goods manufactured during the period was

$225,600

Cost of goods manufactured $68,250; Direct materials used $27,000; Direct labor incurred $25,000; Work in process inventory, January 1, $11,000. Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, is

$13,500

Cost of materials used: $45,000; Direct labor costs: $48,000; Factory overhead: $39,000; Work in process, beg: $28,000; Work in process, end: $18,000; Finished goods, beg: $28,000; Finished goods, end: $18,000. What is the Cost of Goods Sold

$152,000

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

$270,000

The recording of the factory labor incurred for general factory use would include a debit to

Factory Overhead

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for

Work in Process and Factory Overhead