chapter 15

Bonita Industries developed the following data for the current year: Beginning work in process inventory$ 146000 Direct materials used 208000 Actual overhead 176000 Overhead applied 184000 Cost of goods manufactured 900000 Total manufacturing costs 856000 How much is Bonita Industries's ending work in process inventory for the year? a)$102000 b)$484000 c)$74000 d)$372000

a)$102000

For Vaughn Manufacturing, the predetermined overhead rate is 70% of direct labor cost. During the month, $500000 of factory labor costs are incurred of which $140000 is indirect labor. Actual overhead incurred was $310000. The amount of overhead debited to Work in Process Inventory should be: a)$252000 b)$310000 c)$350000 d)$360000

a)$252000

Which of the following is one of the components of cost accounting? a)It involves measuring product costs. b)It involves the determination of company profits. c)It requires GAAP to be applied. d)It requires cost minimizing principles.

a)It involves measuring product costs.

If the entry to assign factory labor showed only an increase to Work In Process Inventory, then all labor costs were a)direct labor. b)indirect labor. c)overtime related. d)regular hours.

a)direct labor.

Cost accounting involves the measuring, recording, and reporting of a)product costs. b)future costs. c)manufacturing processes. d)managerial accounting decisions.

a)product costs.

Sunland Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours. The estimate of annual overhead costs is $460000. The company used 1000 hours of processing for Job A15 during the period and incurred actual overhead costs of $480000. The budgeted machine hours for the year totaled 20000. What amount of manufacturing overhead should be applied to Job A15? a)$480. b)$23000. c)$24000. d)$460.

b 23000

Hayward Manufacturing Company developed the following data: Beginning work in process inventory$900,000Direct materials used700,000Actual overhead1,100,000Overhead applied800,000Cost of goods manufactured1,200,000Ending work in process1,500,000 Hayward Manufacturing Company's total manufacturing costs for the period is a)$1,900,000. b)$1,800,000. c)$1,300,000. d)cannot be determined from the data provided.

b)$1,800,000.

In Crawford Company, the predetermined overhead rate is 80% of direct labor cost. During the month, $210,000 of factory labor costs are incurred, of which $180,000 is direct labor and $30,000 is indirect labor. Actual overhead incurred was $200,000. The amount of overhead debited to Work in Process Inventory should be a)$120,000. b)$144,000. c)$168,000. d)$160,000.

b)$144,000

Bramble Corp. provided the following information from its accounting records for 2019. Expected production50000 labor hoursActual production46000 labor hoursBudgeted overhead$1100000Actual overhead$1060000 How much is the overhead application rate if Bramble Corp. bases the rate on direct labor hours? a)$23.91 per hour b)$22.00 per hour c)$21.20 per hour d)$23.04 per hour

b)$22.00 per hour

Waterway Industries manufactures customized desks. The following pertains to Job No. 953: Direct materials used$29800Direct labor hours worked500Direct labor rate per hour$16.00Machine hours used400Applied factory overhead rate per machine hour$30.00 What is the total manufacturing cost for Job No. 953? a)$48200 b)$49800 c)$51200 d)$55800

b)$49800

In accumulating raw materials costs, the cost of raw materials purchased in a perpetual system is debited to a)raw materials purchases. b)raw materials inventory. c)purchases. d)work in process.

b)raw materials inventory.

A company expected its annual overhead costs to be $1400000 and direct labor costs to be $500000. Actual overhead was $1100000, and actual labor costs totaled $550000. How much is the company's predetermined overhead rate to the nearest cent? a)$2.20 b)$2.00 c)$2.80 d)$2.55

c)$2.80

Why do companies, using job order costing to estimate manufacturing overhead costs, allocate them to individual jobs and products? a)Manufacturing overhead is a period cost, not a job or product cost. b)It is more accurate to estimate costs. c)It enables the company to determine the approximate cost of each job as it gets completed. d) the actual overhead costs are not determinable.

c)It enables the company to determine the approximate cost of each job as it gets completed.

Which one of the following is a source document that impacts the job cost sheet? a)Raw materials receiving slips. b)Materials purchase orders. c)Labor time tickets. d)Finished goods shipping documents.

c)Labor time tickets.

In Mynex Company, Job No. 26 is completed at a cost of $4,500 and later sold for $7,000 cash. A correct entry is a)debit Finished Goods Inventory $7,000 and credit Work in Process Inventory $7,000. b)debit Cost of Goods Sold $7,000 and credit Finished Goods Inventory $7,000. c)debit Finished Goods Inventory $4,500 and credit Work in Process Inventory $4,500. d)debit Accounts Receivable $7,000 and credit Sales $7,000.

c)debit Finished Goods Inventory $4,500 and credit Work in Process Inventory $4,500.

Assigning manufacturing costs to work in process results in credits to all of the following except a)raw materials inventory. b)manufacturing overhead. c)finished goods inventory. d)factory labor.

c)finished goods inventory.

Manufacturing overhead applied plus direct labor incurred and what other item equals total manufacturing costs for the period? a)Goods available for sale. b)Raw materials purchased. c)Work in process. d)Direct materials used.

d)Direct materials used.

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is a)Finished Goods InventoryDirect MaterialsDirect LaborManufacturing Overhead b) Work In Process InventoryDirect MaterialsDirect LaborManufacturing Overhead c)Raw Materials InventoryWork In Process Inventory d)Finished Goods InventoryWork In Process Inventory

d)Finished Goods InventoryWork In Process Inventory

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is a)Increase Finished Goods Inventory and decrease Raw Materials Inventory, Factory Labor, and Manufacturing Overhead. b)Increase Work in Process Inventory and decrease Raw Materials Inventory, Factory Labor, and Manufacturing Overhead. c)Increase Raw Materials Inventory and decrease Work in Process Inventory. d)Increase Finished Goods Inventory and decrease Work in Process Inventory.

d)Increase Finished Goods Inventory and decrease Work in Process Inventory.

When the company assigns factory labor costs to jobs, the direct labor cost is debited to a)Direct Labor. b)Factory Labor. c)Manufacturing Overhead. d)Work in Process Inventory.

d)Work in Process Inventory.