Accounting 202 Chapter 3 Quiz

Greatwater Manufacturing uses job costing. In​ May, material requisitions were​ $44,000 ($39,000 of these were direct​ materials), and raw material purchases were​ $57,700. The end of month balance in raw materials inventory was​ $24,300. What was the beginning raw materials inventory​ balance?

$10,600

Job 590 has an ending balance of​ $28,500. It has been charged manufacturing overhead costs of​ $7,000. The rate is​ 70% of direct labor. What was the amount of direct materials charged to the​ job?

$11,500

Before the year​ began, Murphy Manufacturing estimated that manufacturing overhead for the year would be​ $175,500 and that​ 13,000 direct labor hours would be worked. Actual results for the year included the​ following: Actual manufacturing overhead cost ​$184,000 Actual direct labor hours ​ 14,500 The predetermined manufacturing overhead rate per direct labor hour is closest to

$13.50

Here are selected data for Sally Day​ Corporation: Beginning raw materials inventory ​$37,000 Beginning work in process inventory ​ 61,500 Beginning finished goods inventory ​ 56,300 Cost of materials purchased ​151,000 Cost of direct materials requisitioned ​ 91,300 Direct labor incurred ​ 125,000 Actual manufacturing overhead ​160,000 Cost of goods manufactured ​287,000 Cost of goods sold ​265,000 Manufacturing overhead rate​ (% of direct​ labor) ​125% What is the ending work in process inventory​ balance?

$147,050

Here are selected data for Campbell​ Company: Cost of goods manufactured ​$320,000 Work in process​ inventory, beginning ​109,000 Work in process​ inventory, ending ​104,000 Direct materials used ​ 73,000 Manufacturing overhead is allocated at​ 60% of direct labor cost. What was the amount of direct labor​ costs?

$151,250

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. Selected data about the​ company's operations​ follows: Actual manufacturing overhead cost ​$500,000 Estimated manufacturing overhead cost ​$550,000 Estimated direct labor cost ​$175,000 Estimated direct labor hours ​ 50,000 Actual direct labor hours ​ 60,000 Estimated machine hours ​ 40,000 Actual machine hours ​ 35,000 By how much was manufacturing overhead overallocated or underallocated for the​ year?

$160,000 overallocated

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs. Selected data about the​ company's operations​ follows: Actual manufacturing overhead cost ​$500,000 Estimated manufacturing overhead cost ​$550,000 Estimated direct labor cost ​$175,000 Estimated direct labor hours ​ 50,000 Actual direct labor hours ​ 60,000 Estimated machine hours ​ 40,000 Actual machine hours ​ 35,000 By how much was manufacturing overhead overallocated or underallocated for the​ year?

$18,750 under allocated

Before the year​ began, Murphy Manufacturing estimated that manufacturing overhead for the year would be​ $175,500 and that​ 13,000 direct labor hours would be worked. Actual results for the year included the​ following: Actual manufacturing overhead cost ​$184,000 Actual direct labor hours ​ 14,500 The amount of manufacturing overhead allocated for the year based on direct labor hours would have been

$195,750

Wet N Wild Sports Equipment​ Company's work in process inventory on June 1 has a balance of​ $22,400 representing Job No. 265. During​ June, $50,000 of direct materials were requisitioned for Job No. 265 and​ $35,000 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at​ 125% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to​ $41,000. No new jobs were started during June. Job No. 265 is completed on June 28. Is manufacturing overhead overallocated or underallocated for the month of​ June? By how​ much?

$2,750 overallocated

Here are selected basic data for Stehli​ Company: Estimated manufacturing overhead ​ $253,500 Factory utilities ​ $30,200 Estimated labor hours ​ 35,000 Indirect labor ​ $22,400 Actual direct labor hours ​ 36,000 Sales commissions ​ $53,700 Estimated direct labor cost ​ $325,000 Factory rent ​ $47,700 Actual direct labor cost ​ $320,000 Factory property taxes ​ $28,100 Factory depreciation ​ $66,000 Indirect materials ​ $33,000 If the company allocates overhead based on direct labor​ cost, what are the total actual manufacturing overhead​ costs?

$227,400

The following is selected financial data from Turtle Bay Manufacturing for the most recent year. Ending raw materials inventory ​ $21,000 Ending work in process inventory ​ $44,200 Ending finished goods inventory ​ $53,200 Amount of underallocated manufacturing overhead ​ $5,100 Cost of goods sold for year ​ $85,000 Cost of raw materials purchased during year ​ $45,300 Cost of direct materials requisitioned during year ​ $43,800 Cost of indirect materials requisitioned during year ​ $7,200 Cost of goods completed during year ​ $120,000 Manufacturing overhead allocated ​ $60,000 Manufacturing overhead​ % of direct labor cost ​120% What is the beginning raw materials​ inventory?

$26,700

Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost ​$235,000 Actual manufacturing overhead cost ​$244,000 Estimated machine hours ​20,000 Actual machine hours ​22,500 The estimates were made as of the beginning of the​ year, while the actual results were for the entire year. The amount of manufacturing overhead allocated for the year based on machine hours would have been

$264,375

Job 450 requires​ $9,800 of direct​ materials, $6,400 of direct​ labor, 590 direct labor​ hours, and 400 machine hours. Manufacturing overhead is computed at​ $14 per direct labor hour used and​ $10 per machine hour used. The total cost of Job 450 is

$28,460

Stanley Company uses a job cost system. Manufacturing overhead has been overapplied by​ $5,600 for the year. Actual overhead incurred was​ $105,000. Other balances​ are: Raw materials inventory at end of year ​ $14,000 Work in process inventory at end of year ​ $31,500 Finished goods inventory at end of year ​ $41,500 Unadjusted cost of goods sold for the year ​ $290,000 What will be adjusted cost of goods sold after closing manufacturing​ overhead?

$284,400

Squire Corporation charged Job 110 with​ $13,400 of direct materials and​ $11,900 of direct labor. Allocation for manufacturing overhead is​ 75% of direct labor costs. What is the total cost of Job​ 110?

$34,225

Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent​ year: Estimated direct labor cost ​$500,000 Actual direct labor cost ​$465,000 Estimated manufacturing overhead costs ​$425,000 Actual manufacturing overhead costs ​$350,000 Estimated direct labor hours ​250,000 Actual direct labor hours ​232,000 If Federer Company uses direct labor hours as the allocation​ base, what would the allocated manufacturing overhead be for the​ year?

$394,400

Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two​ departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is​ available: Estimated amounts Trimming Dept Finishing Dept Direct labor cost ​ $320,000 ​ $400,000 Direct labor hours ​ 25,000 ​ 40,000 Manufacturing overhead costs ​ $400,000 ​ $300,000 Actual data for completed Job No. 650 is as​ follows: Actual amounts Trimming Dept Finishing Dept Direct materials requisitioned ​ $22,500 ​ $52,500 Direct labor cost ​ $35,400 ​ $37,100 Direct labor hours ​ 5,400 ​ 5,000 If Job No. 650 consists of 500 units of​ product, the average unit cost of this job is closest​ to:

$458.50

Perry Moldings has the following estimated costs for the upcoming​ year: Direct labor costs ​ $62,000 Direct materials used ​ $25,000 Salary of factory supervisor ​ $39,000 Sales commissions ​ $8,000 Heating and lighting costs for factory ​ $22,000 Depreciation on factory equipment ​ $5,000 Advertising expense ​ $33,000 The company estimates that​ 1,200 direct labor hours will be worked in the upcoming​ year, while​ 2,000 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour is closest to

$55

The following is selected financial data from Turtle Bay Manufacturing for the most recent year. Ending raw materials inventory ​ $21,000 Ending work in process inventory ​ $44,200 Ending finished goods inventory ​ $53,200 Amount of underallocated manufacturing overhead ​ $5,100 Cost of goods sold for year ​ $85,000 Cost of raw materials purchased during year ​ $45,300 Cost of direct materials requisitioned during year ​ $43,800 Cost of indirect materials requisitioned during year ​ $7,200 Cost of goods completed during year ​ $120,000 Manufacturing overhead allocated ​ $60,000 Manufacturing overhead​ % of direct labor cost ​120% What is the actual manufacturing​ overhead?

$65,100

Here are selected data for Sunny Sky​ Corporation: Beginning raw materials inventory ​$37,000 Beginning work in process inventory ​ 62,200 Beginning finished goods inventory ​ 58,300 Cost of materials purchased ​151,000 Cost of direct materials requisitioned ​ 91,300 Direct labor incurred ​ 135,000 Actual manufacturing overhead ​160,000 Cost of goods manufactured ​287,000 Cost of goods sold ​265,000 Manufacturing overhead rate​ (% of direct​ labor) ​125% What is the finished goods ending​ inventory?

$80,300

Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two​ departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is​ available: Estimated amounts Trimming Dept Finishing Dept Direct labor cost ​ $320,000 ​ $400,000 Direct labor hours ​ 25,000 ​ 40,000 Manufacturing overhead costs ​ $400,000 ​ $300,000 Actual data for completed Job No. 650 is as​ follows: Actual amounts Trimming Dept Finishing Dept Direct materials requisitioned ​ $22,500 ​ $52,500 Direct labor cost ​ $35,400 ​ $37,100 Direct labor hours ​ 5,400 ​ 5,000 What is the total manufacturing overhead cost for Job No.​ 650?

$81,750

Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two​ departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is​ available: Estimated amounts Trimming Dept Finishing Dept Direct labor cost ​ $320,000 ​ $400,000 Direct labor hours ​ 25,000 ​ 40,000 Manufacturing overhead costs ​ $400,000 ​ $300,000 Actual data for completed Job No. 650 is as​ follows: Actual amounts Trimming Dept Finishing Dept Direct materials requisitioned ​ $22,500 ​ $52,500 Direct labor cost ​ $35,400 ​ $37,100 Direct labor hours ​ 5,400 ​ 5,000 What is the predetermined manufacturing overhead rate for the Trimming​ Department?

125% of direct labor cost

Showboat Corporation had actual manufacturing overhead costs for the most recent year of​ $29,500. Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of​ $1.50 per direct labor hour. Direct labor cost is​ $19 per hour. At the end of the​ year, Cabaret Corporation found it had overallocated manufacturing overhead by​ $1,250. How many direct labor hours were worked in total during the​ year?

20,500

Morgan Corporation uses estimated direct labor hours of​ 200,000 and estimated manufacturing overhead costs of​ $920,000 in establishing manufacturing overhead rates. Actual manufacturing overhead was​ $970,000, and allocated manufacturing overhead was​ $1,012,000. What was the number of actual direct hours​ worked?

220,000

Here are selected data for Wilson​ Company: Estimated manufacturing overhead ​ $243,750 Factory utilities ​ $30,200 Estimated labor hours ​ 35,000 Indirect labor ​ $22,400 Actual direct labor hours ​ 36,000 Sales commissions ​ $53,700 Estimated direct labor cost ​ $325,000 Factory rent ​ $47,700 Actual direct labor cost ​ $320,000 Factory property taxes ​ $28,100 Factory depreciation ​ $65,400 Indirect materials ​ $33,000 If the company allocates overhead based on direct labor​ cost, what is the predetermined manufacturing overhead​ rate?

75% of direct labor cost

Which of the following is an example of an industry that would use a process costing—rather than a job costing—​system?

Coca-Cola

Which of the following industries would be most likely to use a job costing​ system?

Commercial Building Construction

Which product costing system would be better for custom−order ​products?

Job Costing System

The two basic types of costing systems are

Job Costing and Process Costing

A job costing system can be used by which types of​ companies?

Service, Manufacturing, and Merchandising Businesses

When direct materials are​ requisitioned, they flow directly into

Work in Process Inventory Account

Manufacturing overhead would include

all manufacturing costs except direct materials and direct labor

When using cost−plus ​pricing, the markup is added to the job cost to help

all of the above

Management can use job cost information for each of the following except

all of the listed choices are possible uses of job cost information

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

allocating some manufacturing overhead to each individual job.

Assigning manufacturing overhead costs and other indirect costs is called

cost allocation

Which of the following would be an example of a typical manufacturing overhead​ cost?

depreciation on factory equipment

If manufacturing overhead has been overallocated during the​ period, then

the jobs produced during the period have been overcosted