Accounting Ch. 2

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $139,080 Estimated machine-hours 3,800 Actual manufacturing overhead $137,000 Actual machine-hours 3,780 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The overhead for the year was: $732 underapplied $1,348 underapplied $732 overapplied $1,348 overapplied

$1,348 overapplied

Dapper Corporation had only one job in process on May 1. The job had been charged with $3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May, the following activity was recorded: Raw materials (all direct materials): Beginning balance $8,500 Purchased during the month $42,000 Used in production $48,500 Labor: Direct labor-hours worked during the month 2,200 Direct labor cost incurred $25,520 Actual manufacturing overhead costs incurred $52,800 Inventories: Raw materials, May 30 ? Work in process, May 30 $32,190 Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The cost of goods manufactured for May was: $109,670 $124,620 $143,300 $126,820

$109,670

Hudek Inc., a manufacturing Corporation, has provided the following data for the month of July. The balance in the Work in Process inventory account was $20,000 at the beginning of the month and $10,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $50,000 and direct labor cost of $22,000. The actual manufacturing overhead cost incurred was $58,000. The manufacturing overhead cost applied to Work in Process was $56,000. The cost of goods manufactured for July was: $138,000 $140,000 $130,000 $128,000

$138,000

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $139,080 Estimated machine-hours 3,800 Actual manufacturing overhead $137,000 Actual machine-hours 3,780 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: $136,269 $138,348 $136,987 $137,630

$138,348

Echo Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $360,000 and credited for $338,800. The ending balance in the Finished Goods inventory account was $36,600. At the end of the year, manufacturing overhead was overapplied by $15,900. If the applied manufacturing overhead was $169,300, the actual manufacturing overhead cost for the year was: $168,800 $153,400 $190,000 $185,200

$153,400

Collins Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information applies to the Corporation for the current year: Direct labor-hours: Estimated for the year 24,000 Actual hours worked 19,500 Direct labor cost: Estimated for the year $300,000 Actual cost incurred $210,000 Manufacturing overhead: Estimated for the year $240,000 Actual cost incurred $185,000 The manufacturing overhead cost for the current year will be: $17,000 overapplied $17,000 underapplied $55,000 overapplied $55,000 underapplied

$17,000 underapplied

Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,900 hours and the total estimated manufacturing overhead was $341,890. At the end of the year, actual direct labor-hours for the year were 16,700 hours and the actual manufacturing overhead for the year was $336,890. Overhead at the end of the year was: $22,920 underapplied $17,920 overapplied $17,920 underapplied $22,920 overapplied

$17,920 underapplied

Killian Corporation began operations on January 1. The predetermined overhead rate was set at $6.00 per direct labor-hour. Debits to Work in Process for the year totaled $550,000. Credits to Work in Process totaled $480,000. Analysis of the Corporation's records indicate that direct labor cost totaled $250,000 for the year, which represents 20,000 direct labor-hours. The direct materials used in production during the year totaled: $180,000 $240,000 $130,000 $120,000

$180,000

Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $39,000 and at the end of the month was $47,000. The cost of goods manufactured for the month was $188,000. The actual manufacturing overhead cost incurred was $71,000 and the manufacturing overhead cost applied to Work in Process was $67,000. The adjusted cost of goods sold that would appear on the income statement for July is: $196,000 $184,000 $180,000 $188,000

$184,000

Tondre Inc. has provided the following data for the month of July: Inventories: Beginning Ending Work in process $23,000 $21,000 Finished goods $26,000 $35,000 Additional information: Direct materials $56,000 Direct labor cost $91,000 Manufacturing overhead cost incurred $58,000 Manufacturing overhead cost applied to Work in Process $61,000 The adjusted cost of goods sold that appears on the income statement for July is: $201,000 $198,000 $219,000 $210,000

$198,000

Dapper Corporation had only one job in process on May 1. The job had been charged with $3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May, the following activity was recorded: Raw materials (all direct materials): Beginning balance $8,500 Purchased during the month $42,000 Used in production $48,500 Labor: Direct labor-hours worked during the month 2,200 Direct labor cost incurred $25,520 Actual manufacturing overhead costs incurred $52,800 Inventories: Raw materials, May 30 ? Work in process, May 30 $32,190 Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The balance in the raw materials inventory account on May 30 was: $33,500 $2,000 $40,000 $6,500

$2,000

Clear Colors Corporation uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs. At the beginning of the year the Corporation estimated its total manufacturing overhead cost at $350,000 and its direct labor costs at $200,000. The actual overhead cost incurred during the year was $362,000 and the actual direct labor costs incurred on jobs during the year was $208,000. The manufacturing overhead for the year would be: $12,000 underapplied. $12,000 overapplied. $2,000 underapplied. $2,000 overapplied.

$2,000 overapplied.

Jameson Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $5,000 Direct labor $19,000 Rent on factory building $16,000 Sales salaries $24,000 Depreciation on factory equipment $7,000 Indirect labor $11,000 Production supervisor's salary $14,000 Jameson estimates that 24,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be: $2.00 $2.79 $3.00 $4.00

$2.00

Paulson Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year: Direct materials $25,000 Direct labor $22,000 Advertising expense $15,000 Rent on factory building $13,500 Depreciation on factory equipment $6,500 Indirect materials $10,000 Sales salaries $28,000 Insurance on factory equipment $12,000 Paulson estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year. The predetermined overhead rate per machine-hour will be: $1.60 $2.10 $1.00 $1.05

$2.10

CR Corporation has the following estimated costs for the next year: Direct materials $4,000 Direct labor $20,000 Rent on factory building $15,000 Sales salaries $25,000 Depreciation on factory equipment $8,000 Indirect labor $10,000 Production supervisor's salary $12,000 CR Corporation estimates that 20,000 labor-hours will be worked during the year. If overhead is applied on the basis of direct labor-hours, the overhead rate per hour will be: $2.25 $3.25 $3.45 $4.70

$2.25

Messana Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Raw materials purchases $69,000 Direct labor cost $94,000 Manufacturing overhead cost incurred $54,000 Indirect materials included in manufacturing overhead cost incurred $8,000 Manufacturing overhead cost applied to Work in Process $56,000 The adjusted cost of goods sold that appears on the income statement for August is: $229,000 $211,000 $209,000 $247,000

$209,000

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980. The applied manufacturing overhead for the year was closest to: $208,283 $209,001 $209,898 $209,180

$209,898

The direct labor rate for Brent Corporation is $9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour. During May, the company purchased $60,000 in raw materials (all direct materials) and worked 3,200 direct labor-hours. The Raw Materials inventory (all direct materials) decreased by $3,000 between the beginning and end of May. The Work in Process inventory on May 1 consisted of one job which had been charged with $4,000 in direct materials and on which 300 hours of direct labor time had been worked. There was no Work in Process inventory on May 31. If overhead was underapplied by $2,500 during May, the actual overhead cost for the month must have been: $16,700 $21,700 $18,500 $23,500

$21,700

Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $423,870. At the end of the year, actual direct labor-hours for the year were 19,400 hours, manufacturing overhead for the year was underapplied by $5,650, and the actual manufacturing overhead was $418,870. The predetermined overhead rate for the year must have been closest to: $21.59 $20.76 $21.30 $21.85

$21.30

Tondre Inc. has provided the following data for the month of July: Inventories: Beginning Ending Work in process $23,000 $21,000 Finished goods $26,000 $35,000 Additional information: Direct materials $56,000 Direct labor cost $91,000 Manufacturing overhead cost incurred $58,000 Manufacturing overhead cost applied to Work in Process $61,000 The cost of goods manufactured for July is: $210,000 $205,000 $208,000 $207,000

$210,000

Messana Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Raw materials purchases $69,000 Direct labor cost $94,000 Manufacturing overhead cost incurred $54,000 Indirect materials included in manufacturing overhead cost incurred $8,000 Manufacturing overhead cost applied to Work in Process $56,000 The cost of goods manufactured for August is: $227,000 $229,000 $219,000 $217,000

$229,000

Bradbeer Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,500 hours. At the end of the year, actual direct labor-hours for the year were 16,000 hours, the actual manufacturing overhead for the year was $233,000, and manufacturing overhead for the year was underapplied by $15,400. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been: $249,375 $217,600 $228,000 $238,000

$238,000

The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Bal 0 (b) 87,000 (a) 93,000 5,000 Work In Process Bal 0 (f) 251,000 (b) 69,000 (c) 82,000 (e) 100,000 0 Finished Goods Bal 0 (g) 226,000 (f) 251,000 25,000 Manufacturing Overhead (b) 18,000 (e) 100,000 (c) 12,000 (d) 67,000 (h) 3,000 3,000 Cost of Goods Sold (g) 226,000 (h) 3,000 223,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year? $255,000 $251,000 $223,000 $226,000

$251,000

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: Raw Materials Beg Bal 4,700 10,000 6,900 Work in Process Beg Bal 4,600 26,300 7,400 8,000 6,800 Finished Goods Beg Bal 1,900 22,900 26,300 Manufacturing Overhead 2,600 6,800 3,000 1,900 Wages & Salaries Payable 12,300 Beg Bal 1,400 11,000 Cost of Goods Sold 22,900 The Cost of Goods Manufactured was: $22,900 $26,300 $6,400 $49,200

$26,300

Compute the amount of raw materials used during August if $25,000 of raw materials were purchased during the month and the inventories were as follows: Balance Balance Inventories August 1 August 31 Raw Materials $5,000 $3,000 Work in process $13,000 $16,000 Finished goods $25,000 $27,000 $16,000 $19,000 $23,000 $27,000

$27,000

Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Estimated machine-hours 74,000 Estimated variable manufacturing overhead $7.67 per machine-hour Estimated variable manufacturing overhead $1,630,960 The predetermined overhead rate for the recently completed year was closest to: $22.04 $29.59 $7.67 $29.71

$29.71

Hibshman Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 10,000 machine-hours. The estimated variable manufacturing overhead was $6.82 per machine-hour and the estimated total fixed manufacturing overhead was $230,200. The predetermined overhead rate for the recently completed year was closest to: $29.84 per machine-hour $23.15 per machine-hour $23.02 per machine-hour $6.82 per machine-hour

$29.84 per machine-hour

The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Bal 0 (b) 87,000 (a) 93,000 5,000 Work In Process Bal 0 (f) 251,000 (b) 69,000 (c) 82,000 (e) 100,000 0 Finished Goods Bal 0 (g) 226,000 (f) 251,000 25,000 Manufacturing Overhead (b) 18,000 (e) 100,000 (c) 12,000 (d) 67,000 (h) 3,000 3,000 Cost of Goods Sold (g) 226,000 (h) 3,000 223,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overapplied or underapplied for the year? $12,000 overapplied $12,000 underapplied $3,000 overapplied $3,000 underapplied

$3,000 overapplied

Spectrum Manufacturing had the following information in its records at the end of the year: Predetermined overhead rate 125% of direct labor costs Estimated direct labor costs $87,500 Actual direct labor costs $84,000 Manufacturing Overhead 11,000 13,000 78,000 What was the balance in Manufacturing Overhead, and when closed what will the effect be on gross margin? $3,000 underapplied, and increase $3,000 overapplied, and increase $3,000 underapplied, and decrease $3,000 overapplied, and decrease

$3,000 overapplied, and increase

Meyers Corporation had the following inventory balances at the beginning and end of November: November 1 November 30 Raw Materials $17,000 $20,000 Finished Goods $50,000 $44,000 Work in Process $9,000 $11,000 During November, $39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $8 per direct labor-hour, and it paid its direct labor workers $10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $4,700 of direct materials cost. The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The amount of direct labor cost in the November 30 Work in Process inventory was: $2,800 $3,300 $3,500 $6,300

$3,500

Meyers Corporation had the following inventory balances at the beginning and end of November: November 1 November 30 Raw Materials $17,000 $20,000 Finished Goods $50,000 $44,000 Work in Process $9,000 $11,000 During November, $39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $8 per direct labor-hour, and it paid its direct labor workers $10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $4,700 of direct materials cost. The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The direct materials cost in the November 1 Work in Process inventory account totaled: $6,600 $6,000 $3,600 $3,000

$3,600

Killian Corporation began operations on January 1. The predetermined overhead rate was set at $6.00 per direct labor-hour. Debits to Work in Process for the year totaled $550,000. Credits to Work in Process totaled $480,000. Analysis of the Corporation's records indicate that direct labor cost totaled $250,000 for the year, which represents 20,000 direct labor-hours. The Corporation's ending work in process inventory consisted of one job, Job 42. The job had been charged with $28,000 of direct labor cost, which consisted of 2,000 actual labor-hours. The direct materials cost in Job 42 totaled: $33,000 $42,000 $17,000 $30,000

$30,000

Aksamit Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours 62,000 Estimated variable manufacturing overhead $7.03 per machine-hour Estimated total fixed manufacturing overhead $1,486,140 Actual machine-hours for the year 61,100 The predetermined overhead rate for the recently completed year was closest to: $23.97 $31.00 $7.03 $31.35

$31.00

Sirmons Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 70,000 labor-hours. The estimated variable manufacturing overhead was $9.93 per labor-hour and the estimated total fixed manufacturing overhead was $1,649,200. The actual labor-hours for the year turned out to be 74,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to: $32.22 $9.93 $33.49 $23.56

$33.49

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980. The predetermined overhead rate for the year was closest to: $34.95 $34.83 $34.98 $35.10

$35.10

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $139,080 Estimated machine-hours 3,800 Actual manufacturing overhead $137,000 Actual machine-hours 3,780 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The predetermined overhead rate is closest to: $36.60 $36.41 $36.24 $36.05

$36.60

Dillon Corporation applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During May, the following transactions were recorded by the company: Raw materials (all direct materials): Purchased during the month $38,000 Used in production $35,000 Labor: Direct labor-hours worked during the month 3,150 Direct labor cost incurred $30,000 Manufacturing overhead cost incurred (total) $24,500 Inventories: Raw materials (all direct), May 31 $8,000 Work in process, May 1 $9,000 Work in process, May 31 $12,000* *Contains $4,400 in direct labor cost. The amount of direct materials cost in the May 31 Work in Process inventory account was: $7,600 $2,000 $6,300 $4,300

$4,300

The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,260. A total of 37 direct labor-hours and 141 machine-hours were worked on the job. The direct labor wage rate is $13 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost for the job on its job cost sheet would be: $3,259 $2,741 $4,715 $2,287

$4,715

Galbraith Corporation applies overhead cost to jobs on the basis of 70% of direct labor cost. If Job 201 shows $28,000 of manufacturing overhead applied, the direct labor cost on the job was: $40,000 $19,600 $28,000 $36,400

$40,000

Dillon Corporation applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During May, the following transactions were recorded by the company: Raw materials (all direct materials): Purchased during the month $38,000 Used in production $35,000 Labor: Direct labor-hours worked during the month 3,150 Direct labor cost incurred $30,000 Manufacturing overhead cost incurred (total) $24,500 Inventories: Raw materials (all direct), May 31 $8,000 Work in process, May 1 $9,000 Work in process, May 31 $12,000* *Contains $4,400 in direct labor cost. The balance on May 1 in the Raw Materials inventory account was: $11,000 $5,000 $7,000 $9,000

$5,000

Stelmack Corporation, a manufacturing Corporation, has provided data concerning its operations for September. The beginning balance in the raw materials account was $20,000 and the ending balance was $27,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $53,000, of which $3,000 consisted of raw materials classified as indirect materials. The direct materials cost for September was: $56,000 $53,000 $70,000 $63,000

$53,000

Caber Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour. The applied manufacturing overhead for the year was closest to: $58,017 $59,590 $60,600 $58,597

$59,590

Caber Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour. The overhead for the year was: $1,010 underapplied $590 overapplied $590 underapplied $1,010 overapplied

$590 overapplied

Job 593 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $3,190 Direct labor-hours 71 labor-hours Direct labor wage rate $15 per labor-hour Machine-hours 175 machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be: $6,705 $3,219 $5,249 $4,255

$6,705

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: Raw Materials Beg Bal 4,700 10,000 6,900 Work in Process Beg Bal 4,600 26,300 7,400 8,000 6,800 Finished Goods Beg Bal 1,900 22,900 26,300 The manufacturing overhead applied was: $1,900 $6,800 $12,900 $3,000

$6,800

The following accounts are from last year's books of Sharp Manufacturing: Raw Materials Bal 0 (b) 87,000 (a) 93,000 6,000 Work In Process Bal 0 (f) 251,000 (b) 69,000 (c) 82,000 (e) 100,000 0 Finished Goods Bal 0 (g) 226,000 (f) 251,000 25,000 Manufacturing Overhead (b) 18,000 (e) 100,000 (c) 12,000 (d) 67,000 (h) 3,000 3,000 Cost of Goods Sold (g) 226,000 (h) 3,000 223,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year? $93,000 $69,000 $87,000 $82,000

$69,000

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: Raw Materials Beg Bal 4,700 10,000 6,900 Work in Process Beg Bal 4,600 26,300 7,400 8,000 6,800 Finished Goods Beg Bal 1,900 22,900 26,300 Manufacturing Overhead 2,600 6,800 3,000 1,900 Wages & Salaries Payable 12,300 Beg Bal 1,400 11,000 Cost of Goods Sold 22,900 The direct materials cost was: $8,000 $10,000 $7,400 $4,600

$7,400

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: Raw Materials Beg Bal 4,700 10,000 6,900 Work in Process Beg Bal 4,600 26,300 7,400 8,000 6,800 Finished Goods Beg Bal 1,900 22,900 26,300 Manufacturing Overhead 2,600 6,800 3,000 1,900 Wages & Salaries Payable 12,300 Beg Bal 1,400 11,000 Cost of Goods Sold 22,900 The manufacturing overhead was: $1,900 underapplied $700 underapplied $400 overapplied $3,200 overapplied

$700 underapplied

Messana Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Raw materials purchases $69,000 Direct labor cost $94,000 Manufacturing overhead cost incurred $54,000 Indirect materials included in manufacturing overhead cost incurred $8,000 Manufacturing overhead cost applied to Work in Process $56,000 The direct materials cost for August is: $73,000 $69,000 $81,000 $57,000

$73,000

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: Raw Materials Beg Bal 4,700 10,000 6,900 Work in Process Beg Bal 4,600 26,300 7,400 8,000 6,800 Finished Goods Beg Bal 1,900 22,900 26,300 Manufacturing Overhead 2,600 6,800 3,000 1,900 Wages & Salaries Payable 12,300 Beg Bal 1,400 11,000 Cost of Goods Sold 22,900 The direct labor cost was: $8,000 $12,300 $12,600 $11,000

$8,000

The direct labor rate for Brent Corporation is $9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour. During May, the company purchased $60,000 in raw materials (all direct materials) and worked 3,200 direct labor-hours. The Raw Materials inventory (all direct materials) decreased by $3,000 between the beginning and end of May. The Work in Process inventory on May 1 consisted of one job which had been charged with $4,000 in direct materials and on which 300 hours of direct labor time had been worked. There was no Work in Process inventory on May 31. The balance in the Work in Process inventory account on May 1 was: $0 $6,700 $4,500 $8,500

$8,500

Brusveen Corporation applies manufacturing overhead to jobs on the basis of direct labor-hours. The following information relates to Brusveen for last year: Estimated Actual Direct labor-hours 15,000 14,800 Manufacturing overhead cost $300,000 $287,120 What was Brusveen's underapplied or overapplied overhead for last year? $4,000 underapplied $8,880 underapplied $8,880 overapplied $9,000 underapplied

$8,880 overapplied

Dillon Corporation applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During May, the following transactions were recorded by the company: Raw materials (all direct materials): Purchased during the month $38,000 Used in production $35,000 Labor: Direct labor-hours worked during the month 3,150 Direct labor cost incurred $30,000 Manufacturing overhead cost incurred (total) $24,500 Inventories: Raw materials (all direct), May 31 $8,000 Work in process, May 1 $9,000 Work in process, May 31 $12,000* *Contains $4,400 in direct labor cost. The Cost of Goods Manufactured for May was: $84,500 $95,000 $75,500 $81,500

$84,500

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980. The overhead for the year was: $702 underapplied $898 underapplied $702 overapplied $898 overapplied

$898 overapplied

At the beginning of the year, manufacturing overhead for the year was estimated to be $477,590. At the end of the year, actual direct labor-hours for the year were 29,000 hours, the actual manufacturing overhead for the year was $472,590, and manufacturing overhead for the year was overapplied by $110. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: 29,300 direct labor-hours 28,987 direct labor-hours 28,993 direct labor-hours 29,000 direct labor-hours

29,300 direct labor-hours

Parsons Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, Parsons Corporation incurred $250,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied $12,000 for the year. If the predetermined overhead rate was $8.00 per direct labor-hour, how many hours did the Corporation work during the year? 31,250 hours 30,250 hours 32,750 hours 29,750 hours

32,750 hours

The Work in Process inventory account of a manufacturing Corporation shows a balance of $18,000 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $6,000 and $3,000 for materials, and charges of $4,000 and $2,000 for direct labor. From this information, it appears that the Corporation is using a predetermined overhead rate, as a percentage of direct labor costs, of: 50% 200% 300% 20%

50%

Caber Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour. The predetermined overhead rate was based on how many estimated machine-hours? 5,783 6,000 5,900 5,842

6,000

Which of the following entries or sets of entries would record sales for the month of July of $200,000 for goods costing $119,000 for? Accounts Receivable 200,000 Sales 200,000 Accounts Receivable 200,000 Sales 200,000 Cost of Goods Sold 119,000 Work in Process 119,000 Cost of Goods Sold 119,000 Net Income 81,000 Sales 200,000 Accounts Receivable 200,000 Sales 200,000 Cost of Goods Sold 119,000 Finished Goods 119,000

Accounts Receivable 200,000 Sales 200,000 Cost of Goods Sold 119,000 Finished Goods 119,000

Kaleohano Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $62,000 and the total of the credits to the account was $73,000. Which of the following statements is true? Manufacturing overhead for the month was underapplied by $11,000. Manufacturing overhead applied to Work in Process for the month was $62,000. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $73,000. Actual manufacturing overhead for the month was $62,000.

Actual manufacturing overhead for the month was $62,000.

Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $51,000 and the total of the credits to the account was $64,000. Which of the following statements is true? Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $51,000. Manufacturing overhead applied to Work in Process for the month was $64,000. Manufacturing overhead for the month was underapplied by $13,000. Actual manufacturing overhead incurred during the month was $64,000.

Manufacturing overhead applied to Work in Process for the month was $64,000.

Arvay Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of October. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $62,000 and the total of the credits to the account was $52,000. Which of the following statements is true? Actual manufacturing overhead incurred during the month was $52,000. Manufacturing overhead applied to Work in Process for the month was $62,000. Manufacturing overhead for the month was underapplied by $10,000. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $62,000.

Manufacturing overhead for the month was underapplied by $10,000.

The actual manufacturing overhead incurred at Fraze Corporation during November was $79,000, while the manufacturing overhead applied to Work in Process was $65,000. The Corporation's Cost of Goods Sold was $385,000 prior to closing out its Manufacturing Overhead account. The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true? Manufacturing overhead for the month was underapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $399,000 Manufacturing overhead for the month was overapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $371,000 Manufacturing overhead for the month was overapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $399,000 Manufacturing overhead for the month was underapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $371,000

Manufacturing overhead for the month was underapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $399,000

Smallwood Corporation has provided the following data concerning manufacturing overhead for January: Actual manufacturing overhead incurred $64,000 Manufacturing overhead applied to Work in Process $59,000 The Corporation's Cost of Goods Sold was $223,000 prior to closing out its Manufacturing Overhead account. The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true? Manufacturing overhead for the month was overapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000 Manufacturing overhead for the month was underapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $218,000 Manufacturing overhead for the month was underapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000 Manufacturing overhead for the month was overapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $218,000

Manufacturing overhead for the month was underapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000

In a job-order costing system, the use of indirect materials that have been previously purchased is recorded as a credit to: Work in Process inventory. Manufacturing Overhead. Raw Materials inventory. Finished Goods inventory.

Raw Materials inventory.

Dillon Corporation applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During May, the following transactions were recorded by the company: Raw materials (all direct materials): Purchased during the month $38,000 Used in production $35,000 Labor: Direct labor-hours worked during the month 3,150 Direct labor cost incurred $30,000 Manufacturing overhead cost incurred (total) $24,500 Inventories: Raw materials (all direct), May 31 $8,000 Work in process, May 1 $9,000 Work in process, May 31 $12,000* *Contains $4,400 in direct labor cost. The entry to dispose of the under or overapplied manufacturing overhead cost for the month would include: a debit of $2,000 to the Manufacturing Overhead account. a credit of $2,500 to the Manufacturing Overhead account. a debit of $2,000 to Cost of Goods Sold. a credit of $2,500 to Cost of Goods Sold.

a debit of $2,000 to Cost of Goods Sold.

Dapper Corporation had only one job in process on May 1. The job had been charged with $3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May, the following activity was recorded: Raw materials (all direct materials): Beginning balance $8,500 Purchased during the month $42,000 Used in production $48,500 Labor: Direct labor-hours worked during the month 2,200 Direct labor cost incurred $25,520 Actual manufacturing overhead costs incurred $52,800 Inventories: Raw materials, May 30 ? Work in process, May 30 $32,190 Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the month would include a: debit of $2,200 to Manufacturing Overhead. debit of $14,950 to Manufacturing Overhead. credit of $14,950 to Manufacturing Overhead. credit of $2,200 to Manufacturing Overhead.

credit of $2,200 to Manufacturing Overhead.

Longstaff Inc. has provided the following data for the month of March. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Work In Process Finished Goods Cost of Goods Sold Total Direct materials $4,290 $12,480 $31,200 $47,970 Direct labor 5,260 17,160 42,900 65,320 Manufacturing overhead applied 4,100 10,660 26,240 41,000 Total $13,650 $40,300 $100,340 $154,290 Manufacturing overhead for the month was overapplied by $5,000. The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for March would include the following: debit to Work in Process of $13,650 debit to Work in Process of $500 credit to Work in Process of $13,650 credit to Work in Process of $500

credit to Work in Process of $500

Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company misclassified a portion of direct labor cost as indirect labor. The effect of this misclassification will be to: understate the predetermined overhead rate. overstate the predetermined overhead rate. have no effect on the predetermined overhead rate. cannot be determined from the information given.

overstate the predetermined overhead rate.

In computing its predetermined overhead rate, Brady Company included its factory insurance cost twice. This error will result in: the ending balance of Finished Goods to be understated. the credits to the Manufacturing Overhead account to be understated. the Cost of Goods Manufactured to be overstated. the Net Operating Income to be overstated.

the Cost of Goods Manufactured to be overstated.

Departmental overhead rates are generally preferred to plant-wide overhead rates when: the activities of the various departments in the plant are not homogeneous. the activities of the various departments in the plant are homogeneous. most of the overhead costs are fixed. all departments in the plant are heavily automated.

the activities of the various departments in the plant are not homogeneous.

On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents: the amount of cost charged to Work in Process during the period. the amount of cost transferred from Finished Goods to Cost of Goods Sold during the period. the amount of cost placed into production during the period. the amount of cost of goods completed during the current year whether they were started before or during the current year.

the amount of cost of goods completed during the current year whether they were started before or during the current year.

Overapplied manufacturing overhead means that: the applied manufacturing overhead cost was less than the actual manufacturing overhead cost. the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost. the estimated manufacturing overhead cost was less than the actual manufacturing overhead cost. the estimated manufacturing overhead cost was less than the applied manufacturing overhead cost.

the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost.

Killian Corporation began operations on January 1. The predetermined overhead rate was set at $6.00 per direct labor-hour. Debits to Work in Process for the year totaled $550,000. Credits to Work in Process totaled $480,000. Analysis of the Corporation's records indicate that direct labor cost totaled $250,000 for the year, which represents 20,000 direct labor-hours. If the actual manufacturing overhead cost for the year totaled $145,000, then overhead was: overapplied by $25,000 overapplied by $10,000 underapplied by $25,000 underapplied by $10,000

underapplied by $25,000

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was: overapplied by $15,000 underapplied by $15,000 overapplied by $3,000 underapplied by $3,000

underapplied by $3,000