ACC 202 - Quiz 2

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $720,000 of factory labor costs are incurred of which $200,000 is indirect labor. Actual overhead incurred was $360,000. The amount of overhead debited to Work in Process Inventory should be:

$364,000

Spencer Inc. applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $6,400. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is $20,000?

$5,600

Gannon Company had the following information at December 31: Finished goods inventory, January 1 $ 50,000 Finished goods inventory, December 31 150,000 If the cost of goods manufactured during the year amounted to $2,200,000 and annual sales were $2,750,000, the amount of gross profit for the year is

$650,000.

Cost of goods manufactured equals $85,000 for 2017. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2017 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?

$81,500

Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost $1,600,000 Actual annual overhead cost $1,575,000 Estimated machine hours 400,000 Actual machine hours 390,000

1,560,000 applied and $15,000 underapplied

Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2,100,000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12?

102,500

Redman Company manufactures customized desks. The following pertains to Job No. 978: Direct materials used $15,450 Direct labor hours worked 360 Direct labor rate per hour $15.00 Machine hours used 300 Applied factory overhead rate per machine hour $22.00 What is the total manufacturing cost for Job No. 978?

27,450

Sportly, Inc. completed Job No. B14 during 2017. The job cost sheet listed the following: Direct materials $110,000 Direct labor $60,000 Manufacturing overhead applied $40,000 Units produced 3,000 units Units sold 1,800 units How much is the cost of the finished goods on hand from this job?

84,000

At the end of the year, any balance in the Manufacturing Overhead account is generally eliminated by adjusting

Cost of Goods Sold.

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is Entry field with correct answer Finished Goods Inventory Direct Materials Direct Labor Manufacturing Overhead Work In Process Inventory Direct Materials Direct Labor Manufacturing Overhead Raw Materials Inventory Work In Process Inventory Finished Goods Inventory Work In Process Inventory

Finished Goods Inventory Work In Process Inventory

The entry to record the acquisition of raw materials on account is Entry field with correct answer Manufacturing Overhead Raw Materials Inventory Accounts Payable Work in Process Inventory Accounts Payable Accounts Payable Raw Materials Inventory Raw Materials Inventory Accounts Payable

Raw Materials Inventory Accounts Payable

Which account is credited when a job is completed? Cost of Goods Sold. Finished Goods Inventory. Sales Revenue. Work in Process Inventory

Work in Process Inventory

If the Manufacturing Overhead account has a debit balance at the end of a period, it means that

actual overhead costs were greater than overhead costs applied to jobs.

A process cost system would most likely be used by a company that makes

breakfast cereal.

Overhead application is recorded with a

credit to Manufacturing Overhead

If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a

debit to Cost of Goods Sold.

The predetermined overhead rate is

determined at the beginning of the year.

If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were

direct labor.

An important feature of a job order cost system is that each job

has its own distinguishing characteristics

At the end of the year a company has a $1,200 debit balance in Manufacturing Overhead. If this amount is considered immaterial, the company will

make an adjusting entry by debiting Cost of Goods Sold for $1,200 and crediting Manufacturing Overhead for $1,200.

The labor costs that have been identified as indirect labor should be charged to

manufacturing overhead.

If actual overhead is less than applied manufacturing overhead, then manufacturing overhead is:

overapplied.

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

predetermined overhead rate

All of the following would be entries in assigning accumulated costs to the Work In Process Inventory except: Entry field with correct answer overhead is applied. raw materials are used. the purchase of raw materials. factory labor is used.

the purchase of raw materials