EXAM 1 Burgess

A. $194,740 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $646,250 ÷ 47,000 direct labor-hours = $13.75 per direct labor-hour Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred = $13.75 per direct labor-hour × 37,000 direct labor-hours = $508,750 $20,000 + ($535,000 + $699,000 + $508,750) − $1,568,000 = $20,000 + ($1,742,750) − $1,568,000 = $194,750

A. $194,740 B. $154,750 C. $174,750 D. $214,225

B. $50,000 $47,000 + $538,000 − $535,000 = $50,000

A. $97,000 B. $50,000 C. $585,000 D. $47,000

A. Neither statement is true.

Assume that a company closes out any manufacturing overhead overapplied or underapplied to cost of goods sold. Related to the Cost of Goods Sold, which of the following statements is true? I. In the Schedule of Cost of Goods Sold, the Adjusted cost of goods sold = Unadjusted cost of goods sold + Over applied overhead − Under applied overhead. II. Cost of Goods Sold will be debited if manufacturing overhead is over applied for the period. A. Neither statement is true. B. Only statement II is true. C. Only statement I is true. D. Both statements I and II are true.

D. $49,400 Direct materials cost = Beginning raw materials inventory + Raw materials purchases − Ending raw materials − Indirect materials = $25,500 + $74,000 − $47,000 − $3,100 = $49,400

Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $25,500 and the ending balance was $47,000. Raw materials purchases during the month totaled $74,000. Manufacturing overhead cost incurred during the month was $116,500, of which $3,100 consisted of raw materials classified as indirect materials. The direct materials cost for May was: A. $52,500 B. $95,500 C. $74,000 D. $49,400

C. $588,600 Total manufacturing cost for the job (a) : $850,200 Total number of units produced (b): 13,000 Unit product cost (a) / (b): $65.40 Finished goods inventory (9,000 units * $65.40 per unit): $588,600

Burrel Incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In June the company completed job E08D that consisted of 13,000 units of one of the company's standard products. No other jobs were in beginning finished goods inventory or work in process during the month. The job cost sheet for job E08D shows that the job's total cost was $850,200. During the month, 4,000 completed units from job E08D were sold. The finished goods inventory at the end of June is closest to: A. $850,200 B. $461,600 C. $588,600 D. $261,600

D. $ 261,600 Total manufacturing cost for the job (a): $850,200 Total number of units produced (b): 13,000 Unit product cost (a) / (b): $65.40 Cost of goods sold (4,000 units * $65.40 per unit): $261,600

Burrel Incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In June the company completed job E08D that consisted of 13,000 units of one of the company's standard products. No other jobs were in process or sold during the month. The job cost sheet for job E08D shows that the job's total cost was $850,200. During the month, 4,000 completed units from job E08D were sold. The cost of goods sold for June is closest to: A. $ 850,200 B. $ 829,400 C. $ 259,200 D. $ 261,600

C. $7,626 under applied Manufacturing overhead applied = Predetermined overhead rate × Actual direct labor-hours = $11.90 per machine-hour × 1,460 machine-hours = $17,374 Actual manufacturing overhead incurred: $25,000 Manufacturing overhead applied to Work in Process: 17,374 Underapplied (overapplied) manufacturing overhead:$7,626

Caple 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 $16,660. Actual manufacturing overhead for the year amounted to $25,000 and actual machine-hours were 1,460. The company's predetermined overhead rate for the year was $11.90 per machine-hour. The overhead for the year was: A. $714 over applied B. $7,626 over applied C. $7,626 under applied D. $714 under applied

D. $270 Fixed manufacturing overhead rate = 105000/70000 = 1.5 per machine hour variable manufacturing overhead rate = 3 per machine hour Total manufacturing overhead rate = (3+1.5) = 4.5 per machine hour Amount of overhead applied to job P233 is closest = (60*4.5) = 270

Carradine Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $105,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. The company recently completed Job P233 which required 60 machine-hours. The amount of overhead applied to Job P233 is closest to: A. $180 B. $450 C. $90 D. $270

B. $23,000 Direct material cost = raw materials beginning inventory + purchase of raw materials - ending inventory of raw materials - indirect materials = 14,000+33,000-20,000-4,000=23,000

Hunkins Corporation has provided the following data concerning last month's operations. Purchase of raw materials: $33,000 Indirect material included in manufacturing overhead: $4,000 Direct labor cost: $58,000 Manufacturing overhead applied to Work in Process: $91,000 Beginning Ending Raw material inventory $14,000 $20,000 Work in process inventory $57,000 $70,000 How much is the direct materials cost for the month on the Schedule of Cost of Goods manufactured? A. $39,000 B. $23,000 C. $33,000 D. $47,000

D. $3,532 Overhead cost applied = predetermined overhead rate x machine hours = 4.9 x 80 = 392 Total job cost = Direct materials + direct labour cost + overhead = 500 + 2640 + 392 = 3532

Levron Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $58,000, variable manufacturing overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the following data concerning Job P978 which was recently completed: Number of units in the job: 20 Total machine-hours: 80 Direct materials: $ 500 Direct labor cost: $2, 640 The total job cost for Job P978 is closest to: A. $3,140 B. $3,032 C. $892 D. $3,532

C. Manufacturing overhead applied to Work in Process for the month was $75,000. The credits to the Manufacturing overhead account consist of manufacturing overhead applied.

Matthias Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of May. 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 $56,000 and the total of the credits to the account was $75,000. Which of the following statements is true? A. Manufacturing overhead for the month was underapplied by $19,000. B. Actual manufacturing overhead incurred during the month was $75,000. C. Manufacturing overhead applied to Work in Process for the month was $75,000. D. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $56,000.

D. $504,000 Work in process inventory, 1/1: 18,000 Add: Debits (Additions to work in process): 520,000 538,000 Deduct: Work in process inventory, 12/31: 34,000 Cost of completed jobs transferred from Work in Process to Finished Goods: 504,000

Maysonet Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Work In Process Debit Credit Balance 1/1 18,000 Credits ? Debits 520,000 Balance 12/31 34,000 The cost of completed jobs transferred from Work in Process to Finished Goods during the year was: A. $572,000 B. $538,000 C. $520,000 D. $504,000

A. $4.70 Assembly Department predetermined overhead rate: Estimated fixed manufacturing overhead: $10,500 Estimated variable manufacturing overhead ($2.60 per MH × 5,000 MHs): 13,000 Estimated total manufacturing overhead cost (a): $ 23,500 Estimated total machine-hours (b): 5,000MHs Departmental predetermined overhead rate (a) ÷ (b): $ 4.70per MH

Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Forming / Assembly / Total Estimated total machine-hours (MHs): 5,000 / 5,000 / 10,000 Estimated total fixed manufacturing overhead cost: $ 28,000 / $ 10,500 / $ 38,500 Estimated variable manufacturing overhead cost per MH: $ 1.80 / $2.60 During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow: Job B Job L Forming machine-hours: 3,400 1,600 Assembly machine-hours: 2,000 3,000 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Assembly Department is closest to: A. $4.70 B. $6.05 C. $2.10 D. $2.60

A. $171,000 Explanation Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $136,800 + ($1.80 per machine-hour × 19,000 machine-hours) = $136,800 + $34,200 = $171,000

Kalp Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining Finishing Machine-hours 19,000 12,000 Direct labor-hours 2,000 8,000 Total fixed manufacturing $136,800 $69,600 overhead cost Variable manufacturing $ 1.80 overhead per machine-hour Variable manufacturing $ 3.20 overhead per direct labor-hour During the current month the company started and finished Job K928. The following data were recorded for this job: Job K928: Machining Finishing Machine-hours 90 10 Direct labor-hours 30 50 Direct materials $775 $415 Direct labor cost $630 $1,050 The estimated total manufacturing overhead for the Machining Department is closest to: A. $171,000 B. $359,100 C. $34,200 D. $136,800

A. applied more overhead to Work in Process than the actual amount of overhead cost for the year. Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $300,000 ÷ 75,000 machine-hours = $4 per machine-hour Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred Overhead applied = $4 per machine-hour × 75,000 machine-hours = $300,000 Therefore, the amount of overhead applied was greater than the actual manufacturing overhead costs.

Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of August, Karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours. Actual results for the period were manufacturing overhead costs of $290,000 and 75,000 machine-hours. As a result, Karvel would have: A. applied more overhead to Work in Process than the actual amount of overhead cost for the year. B. found it necessary to recalculate the predetermined overhead rate. C. applied an amount of overhead to Work in Process that was equal to the actual amount of overhead. D. applied less overhead to Work in Process than the actual amount of overhead cost for the year.

B. $663,160 Manufacturing overhead applied= actual machine hours * predetermined overhead rate = 28,100 * 23.60 = $663,160

Kavin Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year. Predetermined overhead rate: $23.60 per machine-hour Estimated total fixed manufacturing overhead from the beginning of the year: $708,000 Estimated activity level from the beginning of the year: 30,000 machine-hours Actual total fixed manufacturing overhead: $752,000 Actual activity level: 28,100 machine-hours The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: A. $44,000 B. $663,160 C. $704,373 D. $708,000

C. Choice A

The cost of electricity for running production equipment is classified as: Conversion Cost Period Cost A) Yes No B) Yes Yes C) No Yes D) No No A. Choice C B. Choice B C. Choice A D. Choice D

D. indirect material cost.

The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n): A. period cost. B. opportunity cost. C. direct material cost. D. indirect material cost.

D. $6,100 over applied The manufacturing overhead is overapplied by $6,100 because the manufacturing overhead applied of $210,500 exceeds the manufacturing overhead incurred by $6,100.

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses a job-order costing and applies manufacturing overhead jobs based on direct labor costs. What is the manufacturing overhead over applied or under applied for the year? A. $6,100 under applied B. $26,100 under applied C. $26,100 over applied D. $6,100 over applied

D. $513,200 Cost of goods manufactured is represented by the debit to Finished Goods and the credit to Work in Process (entry f) = $513,200 cost of goods manufactured

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-ordering costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year? A. $464,000 B. $457,600 C. 253,400 D. $513,200

C. $ 156,500 non direct costs= corporate headquarters building lease + corporate legal office salaries + central warehouse lease cost= $156,500

The following cost data pertain to the operations of Quinonez Department Stores, Incorporated for the month of September. Corporate headquarters building lease: $83,200 Cosmetics Department sales commissions-Northridge Store: $5,380 Corporate legal office salaries: $66,800 Store manager's salary-Northridge Store: $12,400 Heating-Northridge Store: $16,700 Cosmetics Department cost of sales-Northridge Store: $33,800 Central warehouse least cost: $$6,500 Store security-Northridge Store: $19,000 Cosmetics Department manager's salary-Northridge Store: $4,940 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store? A. $83,200 B. $48,100 C. $ 156,500 D. $44,570

A. $46,000 prime cost = direct materials + direct labor = 33,000+13,000= $46,000

The following costs were incurred in May: Direct Materials: $ 33,000 Direct Labor: $ 13,000 Manufacturing Overhead: $ 23,000 Selling Expenses: $ 16,000 Administrative Expanses: $ 34,000 Prime costs during the month totaled: A. $46,000 B. $119,000 C. $36,000 D.$69,000

C. $439,200 Total manufacturing cost for the job: $732,000 Total number of units produced: 15,000 Unit product cost: $48.80 Finished goods inventory (9,000 units * $48.80 per unit): $439,200

Abramov Incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In May the company completed job N29W that consisted of 15,000 units of one of the company's standard products. No other jobs were in beginning finished goods inventory or work in process during the month. The job cost sheet for job N29W shows that the job's total cost was $732,000. During the month, 6,000 completed units from job N29W were sold. The finished goods inventory at the end of May is closest to: A. $292,800 B. $392,800 C. $439,200 D. $732,000

A. $292,800 Total manufacturing cost for the job: $732,000 Total number of units produced: 15,000 Unit product cost: $48.80 Cost of goods sold (6,000 units * $48.80 per unit): $292,800

Abramov Incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In May the company completed job N29W that consisted of 15,000 units of one of the company's standard products. No other jobs were in process or sold during the month. The job cost sheet for job N29W shows that the job's total cost was $732,000. During the month, 6,000 completed units from job N29W were sold. The cost of goods sold for May is closest to: A. $292,800 B. $297,720 C. $709,500 D. $732,000

B. $82,200 Total manufacturing overhead = Variable manufacturing overhead + Fixed manufacturing overhead Fixed manufacturing overhead = 55,200 (given) Variable manufacturing overhead = 6,000 X 4.50 = 27,000 Total Manufacturing overhead = 27,000 + 55,200 = 82,200

Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming / Assembly Machine-hours: 16,000 / 15,000 Direct labor-hours: 2,000 / 6,000 Total fixed manufacturing overhead cost:$ 102,400 / $55,200 Variable manufacturing overhead per machine-hour: $2.30 / Variable manufacturing overhead per direct labor-hour: / $4.50 During the current month the company started and finished Job T924. The following data were recorded for this job: Job T924: Forming: Assembly: Machine-hours 70 20 Direct labor-hours 30 40 Direct materials $870 $385 Direct labor cost $630 $840 The estimated total manufacturing overhead for the Assembly Department is closest to: A. $47,700 B. $82,200 C. $27,000 D. $55,200

D. $82,200 Explanation Assembly Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $55,200 + ($4.50 per direct labor-hour × 6,000 direct labor-hours) = $55,200 + $27,000 = $82,200

Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming/Assembly Machine-hours: 16,000/15,000 Direct labor-hours: 2,000/6,000 Total fixed manufacturing overhead cost: $102,400/$55,200 Variable manufacturing overhead per machine-hour: $2.30/ Variable manufacturing overhead per direct labor-hour: / $4.50 During the current month the company started and finished Job T924. The following data were recorded for this job: Job T924: Forming/Assembly Machine-hours: 70/20 Direct labor-hour: 30/40 Direct materials: $870/$385 Direct labor cost: $630/$840 The estimated total manufacturing overhead for the Assembly Department is closest to: A. $47,700 B. $55,200 C. $27,000 D. $82,200

B. taxes on real estate.

An example of a committed foxed cost would be: A. public relation costs. B. taxes on real estate. C. management development programs. D. advertising programs.

D. $7,400 under applied Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total direct labor-hours = $239,700 ÷ 4,700 direct labor-hours = $51.00 per direct labor-hour Manufacturing overhead applied = Predetermined overhead rate × Actual direct labor-hours = $51.00 per direct labor-hour × 4,600 direct labor-hours = $234,600 Actual manufacturing overhead incurred: $242,000 Manufacturing overhead applied to Work in Process: 234,600 Under applied (over applied) manufacturing overhead: $7,400

Baka 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 $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600. A. $5,100 over applied B. $7,400 over applied C. $5,100 under applied D. $7,400 under applied

A. $16,600 under applied Predetermined Overhead Rate: 240,000/5,000=$48 per direct labor-hour Applied Manufacturing Overhead= 48* 4,700= $225,600 Overhead for the Year= Actual Manufacturing Overhead - Applied Manufacturing Overhead Overhead for the Year= $242,200-$225,600= $16,600

Baka 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 $240,000 and 5,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,200 and actual direct labor-hours were 4,700. The overhead for the year was: A. $16,600 under applied B. $14,400 over applied C. $14,400 under applied D. $16,600 over applied

B. $9.50 per machine-hour Explanation Milling Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $118,400 + ($2.10 per machine-hour × 16,000 machine-hours) = $118,400 + $33,600 = $152,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $152,000 ÷ 16,000 machine-hours = $9.50 per machine-hour

Bassett Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling / Customizing Machine-hours: 16,000 / 12,000 Direct labor-hours: 2,000 / 8,000 Total fixed manufacturing overhead cost: $118,400 / $87,200 Variable manufacturing overhead per machine-hour: $2.10 / Variable manufacturing overhead per direct labor-hour: / $3.30 The predetermined overhead rate for the Milling Department is closest to: A. $19.00 per machine-hour B. $9.50 per machine-hour C. $2.10 per machine-hour D. $7.40 per machine-hour

B. $464,120 Explanation Estimated total fixed manufacturing overhead (a): $492,000 Estimated activity level (b): 30,000 Predetermined overhead rate (a) / (b): $16.40 Actual activity level: 28,300 Manufacturing overhead applied: $464,120

Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $492,000 and 30,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $517,000 and 28,300 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: A. $25,000 B. $464,120 C.$492,000 D. $487,703

D. $6.50 per-machine-hour Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $294,000 + ($2.30 per machine-hour × 70,000 machine-hours) = $294,000 + $161,000 = $455,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $455,000 ÷ 70,000 machine-hours = $6.50 per machine-hour

Bolander Corporation uses a job-order costing system with a single plant wide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours: 70,000 Total fixed manufacturing overhead cost: $294,000 Variable manufacturing overhead per machine-hour: $2.30 Recently, Job M825 was completed with the following characteristics: Number of units in the job: 20 Total machine-hours: 80 Direct materials: $ 665 Direct labor cost: $1, 840 The predetermined overhead rate is closest to: A. $4.20 per machine-hour B. $2.30 per machine-hour C. $8.80 per-machine-hour D. $6.50 per-machine-hour

A. $820 under applied Step 1: determine the overhead variance incurred by the entity. Step 2: Variance regarding costs incurred during production represents the difference between the actual and the budgeted costs. Step 3: determine the predetermined overhead rate as follows: 10,000/25,000=0.4 The budgeted overhead cost per machine hour set by the entity is $0.40. Step 4: actual machine hours incurred. $0.4*26,200=$10,480 (Overhead cost per machine) The standard overhead cost set by the entity totaled $10,480. Step 5: Accordingly, we will compare the actual and standard budgeted overhead cost incurred in the production to determine any overhead variance. $10,480- 11,300 =—$820

Chipata Corporation applies manufacturing overhead to jobs on the basis of machine-hours. Chipata estimated 25,000 machine-hours and $10,000 of manufacturing overhead cost for the year. During the year, Chipata incurred 26,200 machine-hours and $11,300 of manufacturing overhead. What was Chipata's under applied or over applied overhead for the year? A. $820 under applied B. $1,300 under applied C. $1,300 over applied D. $480 over applied

A. $6,763.40 Explanation Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $102,000 + ($1.70 per machine-hour × 17,000 machine-hours) = $102,000 + $28,900 = $130,900 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $130,900 ÷ 17,000 machine-hours = $7.70 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $7.70 per machine-hour × 80 machine-hours = $616 Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $61,200 + ($4.10 per direct labor-hour × 6,000 direct labor-hours) = $61,200 + $24,600 = $85,800 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $85,800 ÷ 6,000 direct labor-hours = $14.30 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base i

Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Maching/Customizing Machine-hours: 17,000/15,000 Direct labor-hours: 3,000/6,000 Total fixed manufacturing overhead cost: $102,000/ $61,200 Variable manufacturing overhead per machine-hour: $1.70/ Variable manufacturing overhead per direct labor-hour: /$4.10 During the current month the company started and finished Job T268. The following data were recorded for this job: Job T268: Maching/Customizing Machine-hours: 80/30 Direct labor-hours: 30/50 Direct materials: $720/ $380 Direct labor cost: $900/$1500 If the company marks up its manufacturing costs by 40% then the selling price for Job T268 would be closest to: A. $6,763.40 B.$1,932.40 C. $7,440.00 D. $4,831.00

A. $4,831 Explanation Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $102,000 + ($1.70 per machine-hour × 17,000 machine-hours) = $102,000 + $28,900 = $130,900 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $130,900 ÷ 17,000 machine-hours = $7.70 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $7.70 per machine-hour × 80 machine-hours = $616 Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $61,200 + ($4.10 per direct labor-hour × 6,000 direct labor-hours) = $61,200 + $24,600 = $85,800 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $85,800 ÷ 6,000 direct labor-hours = $14.30 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base in

Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining/Customizing Machine-hours: 17,000/15,000 Direct labor-hours: 3,000/6,000 Total fixed manufacturing overhead cost: $102,000/$61,200 Variable manufacturing overhead per machine-hour: $1.70/ Variable manufacturing overhead per direct labor-hour: / $4.10 During the current month the company started and finished Job T268. The following data were recorded for this job: Job T268: Machining/Customizing Machine-hours: 80/30 Direct Labor-hours: 30/50 Direct materials: $720/$380 Direct labor cost: $900/$1,500 The total job cost for Job T268 is closest to: A. $4,831 B. $616 C. $2,236 D.$2,595

B.$4,584.00 Explanation Milling Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $113,400 + ($1.60 per machine-hour × 18,000 machine-hours) = $113,400 + $28,800 = $142,200 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $142,200 ÷ 18,000 machine-hours = $7.90 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $7.90 per machine-hour × 60 machine-hours = $474 Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $64,400 + ($3.90 per direct labor-hour × 7,000 direct labor-hours) = $64,400 + $27,300 = $91,700 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $91,700 ÷ 7,000 direct labor-hours = $13.10 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base i

Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling/Customizing Machine-hours: 18,000/13,000 Direct labor-hours: 4,000/7,000 Total fixed manufacturing overhead cost: $113,400/$64,400 Variable manufacturing overhead per machine-hour: $1.60/ Variable manufacturing overhead per direct labor-hour: / $3.90 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319: Milling/Customizing Machine-hours: 60 / 10 Direct labor-hours: 20 / 60 Direct materials: $655 / $305 Direct labor cost: $400 / $1,200 If the company marks up its manufacturing costs by 20% then the selling price for Job A319 would be closest to: A. $5,042.00 B.$4,584.00 C. $3,820.00 D. $764.00

A. $33,000 Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials − Ending raw materials inventory Raw materials used in production = $7,000 + $30,000 − $4,000 = $33,000

Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows: Inventorie Balance 11/1 11/30 Raw Materials $7,000 $4,000 Work In Process $6,000 $7,500 Finished Goods $10,000 $12,000 A. $33,000 B. $29,500 C. $31,500 D. $27,000

B. $33,000 Raw materials used in November = Opening stock + Purchases - Closing stock = 7000+30000-4000 = $ 33,000.

Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows: Inventories Balance 11/1 Balance 11/30 Raw materials $ 7,000 $ 4,000 Work in progress $ 6,000 $ 7,500 Finished goods $ 10,000 $ 12,000 A. 29, 500 B. $33,000 C. $31,500 D. $27,000

C. $6,210 under applied Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $501,860 ÷ 21,820 direct labor-hours = $23.00 per direct labor-hour Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred = $23.00 per direct labor-hour × 21,550 direct labor-hours = $495,650 Overhead over or under applied Actual manufacturing overhead incurred: $501,860 Manufacturing overhead applied to Work in Process: 495,650 Under applied (over applied) manufacturing overhead: $6,210

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,820 hours and the total estimated manufacturing overhead was $501,860. At the end of the year, actual direct labor-hours for the year were 21,550 hours and the actual manufacturing overhead for the year was $501,860. Overhead at the end of the year was: A. $6,260 over applied B. $6,210 over applied C. $6,210 under applied D. $6,260 under applied

B. $1,524 under applied Predetermined overhead rate = Estimated manufacturing overhead / Estimated labor hours: $560,324 / 22,060 = $25.40 Applied manufacturing overhead = Actual direct labor hours * Predetermined overhead rate: 22,000*$25.4= $558,800.00 Over (under) applied overheads = Applied manufacturing overhead - Actual manufacturing overhead: $558,800-$560,324= —1,524

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,060 hours and the total estimated manufacturing overhead was $560,324. At the end of the year, actual direct labor-hours for the year were 22,000 hours and the actual manufacturing overhead for the year was $560,324. Overhead at the end of the year was: A. $1,574 under applied B. $1,524 under applied C. $1,574 over applied D. $1,524 over applied

D. $74,000 Work in Process Debit Credit Balance 48,000 (8) 458,000 (1) 154,000 (3) 94,000 (7) 236,000 Balance 74,000

Dagostino Corporation uses a job-order costing system. The following data relate to the just completed month's operations. Direct materials requisitioned for use in production, $154,000 Indirect materials requisitioned for use in production, $45,000 Direct labor wages incurred, $94,000 Indirect labor wages incurred, $119,000 Depreciation recorded on factory equipment, $44,000 Additional manufacturing overhead costs incurred, $83,000 Manufacturing overhead costs applied to jobs, $236,000 Cost of jobs completed and transferred from Work in Process to Finished Goods, $458,000 Use the following T-accounts to answer the following question. Work in Process Debit Credit Balance $48,000 A. $94,000 B. $84,000 C. $64,000 D. $74,000

A. $4.40 per machine-hour Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $144,000 + ($2.00 per machine-hour × 60,000 machine-hours) = $144,000 + $120,000 = $264,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $264,000 ÷ 60,000 machine-hours = $4.40 per machine-hour

Dearden Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $144,000, variable manufacturing overhead of $2.00 per machine-hour, and 60,000 machine-hours. The predetermined overhead rate is closest to: A. $4.40 per machine-hour B. $6.40 per machine-hour C. $2.00 per machine-hour D. $2.40 per machine-hour

A. $812 Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $33,000 + ($2.50 per direct labor-hour × 10,000 direct labor-hours) = $33,000 + $25,000 = $58,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $58,000 ÷ 10,000 direct labor-hours = $5.80 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $5.80 per direct labor-hour × 140 direct labor-hours = $812

Decorte Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours: 10,000 Total fixed manufacturing overhead cost: $33,000 Variable manufacturing overhead per direct labor-hour: $2.50 Recently, Job K332 was completed with the following characteristics: Number of units in the job: 70 Total direct labor-hours: 140 Direct materials: $455 Direct labor-cost: $5,320 The amount of overhead applied to Job K332 is closest to: A. $812 B. $350 C. $1,162 D. $462

A. Both statements I and II are true.

Determine if the statements about the schedule of cost of goods manufactured are true. I. The Schedule of Cost of Goods Manufactured contains three elements of product costs—direct materials, direct labor, and manufacturing overhead. II. The Schedule of Cost of Goods Manufactured summarizes the portions of its product costs that remain in ending Work in Process inventory and that are transferred out of Work in Process into Finished Goods. A. Both statements I and II are true. B. Neither statement is true. C. Only statement I is true. D. Only statement II is true.

B. $95,000 545,000-450,000=$95,000

Dominik Corporation purchased a machine 5 years ago for $527,000 when it launched product M08Y. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 310 machine costing $545,000 or by a new model 240 machine costing $450,000. Management has decided to buy the model 240 machine. It has less capacity than the model 310 machine, but its capacity is sufficient to continue making product M08Y. Management also considered, but rejected, the alternative of dropping product M08Y and not replacing the old machine. If that were done, the $450,000 invested in the new machine could instead have been invested in a project that would have returned a total of $532,000. In making the decision to buy the model 240 machine rather than the model 310 machine, the differential cost was: A. $5,000 B. $95,000 C. $77,000 D. $18,000

B. $139,000 Beginning finished goods inventory + cost of goods manufactured= cost of goods available for sale - ending finished goods inventory = unadjusted cost of goods sold - over applied overhead = adjusted cost of goods sold 35,000+ 146,000=181,000-37,000=144,000-5,000=139,000

Emigh Corporation's cost of goods manufactured for the just completed month was $146,000 and its overhead was overapplied by $5,000. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $37,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much was the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A. $144,000 B. $139,000 C. $146,000 D. $181,000

B. Manufacturing overhead was over applied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000 69,000-79,000= -10,000 Adjusted cost of goods sold = Unadjusted cost of goods sold + Under applied manufacturing overhead − Overapplied manufacturing overhead = $243,000 + $0 − $10,000 = $233,000

Faughn Corporation has provided the following data concerning manufacturing overhead for July: Actual manufacturing overhead incurred: $69,000 Manufacturing overhead applied to Work in Process: $79,000 The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true? A. Manufacturing overhead was under applied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000 B. Manufacturing overhead was over applied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000 C. Manufacturing overhead was under applied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000 D. Manufacturing overhead was over applied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000

A. under applied manufacturing overhead of $300 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $18,000 ÷ 15,000 direct labor-hours = $1.20 per direct labor-hour

Forbes Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the Corporation estimated manufacturing overhead would be $18,000 and direct labor-hours would be 15,000. The actual figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours. The cost records for the period will show: A. under applied manufacturing overhead of $300 B. over applied manufacturing overhead of $1,500 C. over applied manufacturing over head of $300 D. under applied manufacturing overhead of $1,500

D. $14.89 per machine-hr (72,400*3.30)=238,920+ 838,770=1,077,690/72,400=14.885=14.89

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Estimated Machine Hrs: 72,400 Estimated Variable—Manufacturing overhead: $3.30/machine-hr Estimated Total Fixed Manufacturing overhead: $838,770 The predetermined overhead rate for the recently completed year was closest to: A. $8.63 per machine-hr B. $9.90 per machine-hr C. $6.72 per machine-hr D. $14.89 per machine-hr

B. $14.85 per machine-hour Estimated total manufacturing overhead = $838,750 + ($3.30 per machine-hour × 72,600 machine-hours) = $1,078,330 Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $1,078,330 ÷ 72,600 machine-hours = $14.85 per machine-hour

Giannitti 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: 72,600 Estimated variable manufacturing overhead: $3.30 per machine-hour Estimated total fixed manufacturing overhead: $838,750 The predetermined overhead rate for the recently completed year was closest to: A. $8.66 per machine-hour B. $14.85 per machine-hour C. $9.90 per machine-hour D. $6.73 per machine-hour

A. $203,000 Beginning finished goods inventory: $33,000 Add: Cost of goods manufactured: 170,000 Cost of goods available for sale: $203,000

Gurtner Corporation has provided the following data concerning last month's operations. Cost of goods manufactured: $170,000 Under applied overhead: $ 4,000 Beginning Ending Finished goods inventory: $33,000 $40,000 Any under applied or over applied manufacturing overhead is closed out to cost of goods sold. How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold? A. $203,000 B. $163,000 C. $167,000 D. $170,000

D. $1,200 Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $312,000 + ($2.10 per machine-hour × 80,000 machine-hours) = $312,000 + $168,000 = $480,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $480,000 ÷ 80,000 machine-hours = $6.00 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $6.00 per machine-hour × 200 machine-hours = $1,200

Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours: 80,000 Total fixed manufacturing overhead cost: $312,000 Variable manufacturing overhead per machine-hour: $2.10 Recently, Job T629 was completed with the following characteristics: Number of units in the job: 50 Total machine-hours: 200 The amount of overhead applied to Job T629 is closest to: A. $1,620 B. $420 C. $780 D. $1,200

A. $186,000 Beginning work in process inventory: $47,000 Direct Materials: $14,000 Direct Labor: 58,000 Manufacturing overhead cost applied to work in process: 79,000 Total manufacturing costs added to production 151,000 Total manufacturing costs to account for 198,000 Deduct: Ending work in process inventory 53,000 Cost of goods manufactured $145,000 Beginning finished goods inventory $ 41,000 Add: Cost of goods manufactured 145,000 Cost of goods available for sale $186,000

Holmstrom Corporation has provided the following data concerning last month's operations. Direct Material: $14,000 Direct Labor Cost: $58,000 Manufacturing overhead applied to Work in Process: $79,000 Beginning Ending Work in process inventory: $47,000 $53,000 Finished goods inventory: $41,000 $42,000 How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold? A. $186,000 B. $145,000 C. $144,000 D. $138,000

C. $172,000 Direct Materials: Beginning materials: $14,000 Add: purchase of raw materials: 33,000 Total raw materialas available: 47,000 Deduct: Ending raw material inventory: 20,000 Total raw materials used in production: 27,000 Deduct: Indirect materials included in manufacturing overhead: 4,000 Direct materials used in production: $23,000 Direct labor: 58,000 Manufacturing overhead cost applied to work in process: 91,000 Total manufacturing costs added to production: 172,000

Hunkins Corporation has provided the following data concerning last month's operations. Purchases of raw materials: $33,000 Indirect materials included in manufacturing overhead: $4,000 Direct Labor cost: $58,000 Manufacturing overhead applied to work in Process: $91,000 Beginning Ending Raw materials inventory: $14,000 $20,000 Work in process inventory $57,000 $70,000 How much is the total manufacturing cost for the month on the Schedule of Cost of Goods Manufactured? A. $176,000 B. $229,000 C. $172,000 D. $159,000

B. Only statement I is true.

I. A bill of materials is a document that lists the type and quantity of each type of direct material needed to complete a unit of product. II. An employee time ticket is used to record points that are earned by employees based on the hours they worked that can be used to pay for coffee, food in the cafeteria, and even in some cases for vacation travel. Which of the following statements are true? A. Only statement II is true. B. Only statement I is true. C. Both of the statements are true. D. Neither of the statements are true.

A. Neither statement is true.

I. Direct labor is separately listed as an expense. II. Direct materials is separately listed as an expense. On a manufacturing company's income statement, which of the following is true? A. Neither statement is true. B. Only II is true. C. Only I is true. D. Both I and II are true.

B. Neither of the statements are true.

I. Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred in completing a job. II. A job cost sheet is used to record how much a customer pays for the job once the job is completed. Which of the following statements are true? A. Only statement II is true. B. Neither of the statements are true. C. Both of the statements are true. Only statement I is true.

A. total cost

In a standard cost formula Y= a + bX, what does the "Y" represent? A. total cost B. total variable cost C. variable cost per unit D. total fixed cost

D. total fixed cost

In a standard cost formula Y= a + bX, what does the "a" represent? A. total cost B. total variable cost C. variable cost per unit D. total fixed cost

C. variable cost per unit

In a standard cost formula Y= a + bX, what does the "b" represent? A. total cost B. total variable cost C. variable cost per unit D. total fixed cost

A. Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory − Ending work in process inventory

In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations? A. Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory − Ending work in process inventory B. Cost of goods manufactured = Total manufacturing costs + Beginning finished goods inventory − Ending finished goods inventory C. Cost of goods manufactured = Total manufacturing costs + Ending work in process inventory − Beginning work in process inventory D. Cost of goods manufactured = Total manufacturing costs + Ending finished goods inventory − Beginning finished goods inventory

D. $3,604 Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $237,000 + ($3.90 per machine-hour × 30,000 machine-hours) = $237,000 + $117,000 = $354,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $354,000 ÷ 30,000 machine-hours = $11.80 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $11.80 per machine-hour × 80 machine-hours = $944 Direct materials: $500 Direct labor: 2,160 Manufacturing overhead applied: 944 Total cost of Job A496: $3,604

Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed: Number of units in the job: 20 Total machine-hours: 80 Direct materials: $500 Direct labor cost: $2,160 The total job cost for Job A496 is closest to: A. $1,444 B. $2,660 C. $3,104 D. $3,604

A. $180.20 Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $237,000 + ($3.90 per machine-hour × 30,000 machine-hours) = $237,000 + $117,000 = $354,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $354,000 ÷ 30,000 machine-hours = $11.80 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $11.80 per machine-hour × 80 machine-hours = $944 Direct material: $500 Direct labor: 2,160 Manufacturing overhead applied: 944 Total cost of Job A496: $3,604 Total cost of Job A496 (a): $3,604 Number of units (b): 20 Units product cost (a)/(b): $180.20

Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed: Number of units in the job: 20 Total machine-hours: 80 Direct materials: $500 Direct labor cost: $2,160 The unit product cost for Job A496 is closest to: A. $180.20 B. $133.00 C. $72.20 D. $45.05

B. $650 Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $90,000 + ($3.50 per direct labor-hour × 30,000 direct labor-hours) = $90,000 + $105,000 = $195,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $195,000 ÷ 30,000 direct labor-hours = $6.50 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $6.50 per direct labor-hour × 100 direct labor-hours = $650

Kubes Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.50 per direct labor-hour, and 30,000 direct labor-hours. The company has provided the following data concerning Job A477 which was recently completed: Total direct labor-hours: 100 Direct material: $520 Direct labor cost: $2,800 The amount of overhead applied to Job A477 is closest to: A. $1,000 B. $650 C. $350 D. $300

A. $630,000 Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $357,000 + ($3.90 per machine-hour × 70,000 machine-hours) = $357,000 + $273,000 = $630,000

Laflame Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours: 70,000 Total fixed manufacturing overhead cost: $357,000 Variable manufacturing overhead per machine-hour: $3.90 A. $630,000 B. $273,000 C. $357,004 D. $357,000

A. $5,000 Raw Materials Debit Credit Balance 0 (1) 96,000 (2) 69,000 (3) 22,000 Balance 5,000

Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. 1. Raw materials purchased for cash, $96,000 2. Direct materials requisitioned for use in production, $69,000 3. Indirect materials requisitioned for use in production, $22,000 4. Direct labor wages incurred and paid, $129,000 5. Indirect labor wages incurred and paid, $16,000 6. Additional manufacturing overhead costs incurred and paid, $121,000 7. Manufacturing overhead costs applied to jobs, $163,000 8. All of the jobs in process were completed. 9. All of the completed jobs were shipped to customers. 10. Any under applied or over applied overhead for the period was closed out to Cost of Goods Sold. The ending balance in the Raw Materials account is closest to: A. $5,000 B. $22,000 C. $27,000 D. $74,000

B. $4.90 per machine-hour The Estimated Total Manufacturing Overhead Cost = Variable cost +Fixed Cost= $58,000+$40,000=$98,000 The predetermined overhead rate = The Estimated Total Manufacturing Overhead Cost/ Estimated Total Machine Hours=$98000/20,000 Machine Hours =4.9 Per Machine Hour

Levron Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $58,000, variable manufacturing overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the following data concerning Job P978 which was recently completed: Number of units in the job: 20 Total machine-hours: 80 Direct materials: $ 500 Direct labor cost: $2, 640 The predetermined overhead rate is closest to: A. $2.00 per machine-hour B. $4.90 per machine-hour C. $6.90 per machine-hour D. $2.90 per machine-hour

C. $254,400 Calculation of over applied overhead: Particulars Amount applied overhead cost $65,200 actual overhead cost incurred $60,400 over applied overhead $4,800 Calculation of the adjusted cost of goods sold Particulars Amount beginning finished goods inventory $70,000 add:- cost of goods manufactured $221,000 less:- ending finished goods inventory $31,800 unadjusted cost of goods sold $259,200 less:- over applied overhead $4,800 adjusted cost of goods sold $254,400

Luebke Incorporated has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $70,000 and at the end of the month was $31,800. The cost of goods manufactured for the month was $221,000. The actual manufacturing overhead cost incurred was $60,400 and the manufacturing overhead cost applied to Work in Process was $65,200. The company closes out any under applied or over applied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is: A. $259,200 B. 221,000 C. $254,400 D. $182,800

D. $760 Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $497,000 + ($2.40 per direct labor-hour × 70,000 direct labor-hours) = $497,000 + $168,000 = $665,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $665,000 ÷ 70,000 direct labor-hours = $9.50 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.50 per direct labor-hour × 80 direct labor-hours = $760

Lueckenhoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours. The company has provided the following data concerning Job T498 which was recently completed: Number of units in the job: 40 Total direct labor-hours: 80 Direct materials: $950 Direct labor cost: $2,720 The amount of overhead applied to Job T498 is closest to: A. $568 B. $192 C. $952 D. $760

C. $204.00 predetermined overhead rate= 8.4 Direct materials: $675 Direct labor cost: $1,050 Variable manufacturing overhead: (30 * 2.10): $63 Fixed manufacturing overhead: (30*8.4): $252 Total cost incurred: $2,040 Divide by: Number units in the job: $10 Unit product cost for Job T687: $204

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours: 30,000 Total fixed manufacturing overhead cost: $252,000 Variable manufacturing overhead per machine-hour: $2.10 Recently, Job T687 was completed with the following characteristics: Number of units in the job: 10 Total machine-hours: 30 Direct materials: $675 Direct labor cost: $1,050 The unit product cost for Job T687 is closest to: A. $68.00 B. $172.50 C. $204.00 D. $99.00

C. $624.00 Explanation Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $102,600 + ($2.10 per machine-hour × 18,000 machine-hours) = $102,600 + $37,800 = $140,400 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $140,400 ÷ 18,000 machine-hours = $7.80 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $7.80 per machine-hour × 80 machine-hours = $624

Malakan Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining / Finishing Machine-hours: 18,000 / 11,000 Direct labor-hours: 2,000 / 9,000 Total fixed manufacturing overhead cost: $102,600 / $96,300 Variable manufacturing overhead per machine-hour: $2.10 / Variable manufacturing overhead per direct labor-hour: / $3.90 During the current month the company started and finished Job K368. The following data were recorded for this job: Job K368: Machining / Finishing Machine-Hours: 80 / 30 Direct labor-hours 20 / 40 The amount of overhead applied in the Machining Department to Job K368 is closest to: A. $856.00 B. $168.00 C. $624.00 D. $140,400.00

B. $25,940 Explanation Forming Department predetermined overhead rate: Estimated fixed manufacturing overhead: $28,000 Estimated variable manufacturing overhead ($1.80 per MH * 5,000MHs): 9,000 Estimated total manufacturing overhead cost (a): $37,000 Estimated total machine-hours (b): 5,000 MHs Departmental predetermined overhead rate (a)/(b): $7.40 per MH Assembly Department predetermined overhead rate: Estimated fixed manufacturing overhead: $10,500 Estimated variable manufacturing overhead ($2.60 per MH * 5,000MHs): 13,000 Estimated total manufacturing overhead cost (a): $23,500 Estimated total machine-hours (b): 5,000 MHs Departmental predetermined overhead rate (a)/(b): $4.70 per MH Manufacturing overhead applied to Job L: Forming ($7.40 per MH * 1,600MHs): $11,840 Assembly ($4.70 per MH*3,000MHs): 14,100 Total manufacturing overhead applied: $25,940

Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Forming / Assembly/ Total Estimated total machine-hours (MHs): 5,000/5,000/10,000 Estimated total fixed manufacturing overhead cost: $28,000/$10,500/$38,500 Estimated variabvle manufacturing overhead cost per MH: $1.80/$2.60 During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow: Job B Job L Forming machine-hours 3,400 1,600 Assembly machine-hours 2,000 3,000 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job L is closest to: A. $27,830 B. $25,940 C. $11,840 D. $14,100

D. $ 116,100 Total manufacturing cost for the job (a): $ 928,800 Total number of units produced (b): 24,000 Unit product cost (a) / (b): $ 38.70 Units in finished goods inventory (a): 3,000 Unit product cost (b): $ 38.70 Finished goods inventory (a) * (b): $ 116,110

Nagle Incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In October the company completed job O43G that consisted of 24,000 units of one of the company's standard products. No other jobs were in beginning finished goods inventory or work in process during the month. The job cost sheet for job O43G shows that the total cost for the job was $928,800. During the month, 21,000 completed units from job O43G were sold. The finished goods inventory at the end of October is closest to: A. $ 816,100 B. $ 928,800 C. $ 812,700 D. $ 116,100

D. $812,700 total manufacturing cost of the job (a) : $928,800 total number of units produced (b): 24,000 unit product cost (a) / (b): $38.70 units in finished goods inventory (a): 3,000 unit product cost (b): $38.70 finished goods inventory (a) * (b): $116,100

Nagle Incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In October the company completed job O43G that consisted of 24,000 units of one of the company's standard products. No other jobs were in beginning finished goods inventory or work in process during the month. The job cost sheet for job O43G shows that the total cost for the job was $928,800. During the month, 21,000 completed units from job O43G were sold. The finished goods inventory at the end of October is closest to: A. $928,800 B. $816,100 C. $116,100 D. $812,700

B. $633,100 Finished goods inventory at the end : = units produced - units sold = 44,000-31,000= 13,000 Product cost per unit = Total manufacturing cost / units produced = 2,142,800/44,000=48.7 Cost of finished goods inventory at the end : 13,000* 48.7= $633,100

Nagle Incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In October the company completed job O43G that consisted of 44,000 units of one of the company's standard products. No other jobs were in beginning finished goods inventory or work in process during the month. The job cost sheet for job O43G shows that the total cost for the job was $2,142,800. During the month, 31,000 completed units from job O43G were sold. The finished goods inventory at the end of October is closest to: A. $1,509,700 B. $633,100 C. $2,142,800 D. $826,100

D.$72,758 Explanation The first step is to calculate the estimated total overhead costs in the two departments. Molding Estimated fixed manufacturing overhead: $19,600 Estimated variable manufacturing overhead ($1.10 per MH * 4,000 MHs): 4,400 Estimated total manufacturing overhead cost: $24,000 Finishing Estimated fixed manufacturing overhead: $2,400 Estimated variable manufacturing overhead ($2.10 per MH * 1,000 MHs): 2,100 Estimated total manufacturing overhead cost: $4,500 The second step is to combine the estimated manufacturing overhead costs in the two departments ($24,000 + $4,500 = $28,500) to calculate the plantwide predetermined overhead rate as follow: Estimated total manufacturing overhead cost: $28,500 Estimated total machine hours: 5,000 MHs Predetermined overhead rate: $5.70 per MH The overhead applied to Job A is calculated as follows: Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job = $5.70 per MH × (2,700 MHs + 400 MHs) = $5.70 per MH × (3,100 MHs) = $17,670 Job A's manufacturing cost: Direct materials: $13,600 Direct labor cost: 20,700 Manufacturing overhead applied: 17,670 Total manufacturing cost:

Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Molding/Finishing/Total Estimated total machine-hours (MHs):4,000/1,000/5,000 Estimated total fixed manufacturing overhead cost: $19,600/$2,400/$22,000 Estimated variable manufacturing overhead cost per MH: $1.10/ $2.10 During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow: Job A / Job M Direct materials: $13,600/$7,500 Direct labor cost: $20,700/$7,400 Molding machine-hours: 2,700/1,300 Finishing machine-hours: 400/600 Assume that the company uses a plant wide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: A. $51,970 B. $20,788 C.$80,034 D.$72,758

D. manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production.

Over applied manufacturing overhead would result if: A. manufacturing overhead costs incurred were greater than manufacturing overhead costs charged to production. B. manufacturing overhead costs incurred were less than estimated manufacturing overhead costs. C. the plant was operated at less than normal capacity. D. manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production.

C. $31,600 Unit direct labor cost: $2.90 Direct materials cost per unit: $5.00 Total unit direct manufacturing costs= direct labor costs+direct material costs=2.90+5.00= $7.90 Perky units produced 4,000 Total direct manufacturing costs= units produced * unit direct manufactured = 4,000*7.90= $31,600

Perkey Corporation has provided the following: Cost per Unit / Cost per Period Direct Materials: $5.00 / Direct Labor: $ 2.90 / Variable Manufacturing Overhead:$1.25 / Fixed Manufacturing Overhead: / $21,000 Slaes Commissions: $1.00 / Variable Administrative Expense:$0.55 / Fixed Selling and Administrative Expense: / $7,500 If 4,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: A. $53,400 B. $35,600 C. $31,600 D. $36,600

B$190 Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $285,000 + ($3.80 per direct labor-hour × 50,000 direct labor-hours) = $285,000 + $190,000 = $475,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $475,000 ÷ 50,000 direct labor-hours = $9.50 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.50 per direct labor-hour × 20 direct labor-hours = $190

Prather Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours: 50,000 Total fixed manufacturing overhead cost: $285,000 Variable manufacturing overhead per direct labor-hour: $3.80 Recently, Job P513 was completed with the following characteristics: Number of units in the job: 10 Total direct labor-hours: 20 Direct materials: $720 Direct labor cost: $500 The amount of overhead applied to Job P513 is closest to: A. $114 B$190 C.$76 D.$266

A. $141,400 Cost of goods manufactured = Direct materials + Direct labor + Manufacturing overhead applied + Beginning work in process inventory − Ending work in process inventory = $55,400 + $28,600 + $51,400 + $24,000 − $18,000 = $141,400

Rediger Incorporated a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $24,000 at the beginning of the month and $18,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $55,400 and direct labor cost of $28,600. The actual manufacturing overhead cost incurred was $53,200. The manufacturing overhead cost applied to Work in Process was $51,400. The cost of goods manufactured for June was: A. $141,400 B. $135,400 C. $143,200 D.$137,200

D. $403,000 Finished goods inventory, 1/1: 38,000 Add: Debits (Cost of good manufactured): 415,000 Goods available for sale: 453,000 Deduct: Finished goods inventory, 12/31: 50,000 Cost of goods sold: 403,000

Solt Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Finished Goods Debit Credit Balance 1/1: 38,000 Credits ? Debits: ? Balance 12/31: 50,000 The Cost of Goods Manufactured for the year was $415,000. The unadjusted Cost of Goods Sold for the year was: A. $503,000 B. $453,000 C. $415,000 D. $403,000

C. $403,000 The unadjusted Cost of Goods Sold for the year = Beginning finished goods+The Cost of Goods Manufactured -Ending finished goods: 38,000+ 415,000= 453,000-50,000= 403,000

Solt Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Finished Goods Debit Credit Balance 1/1 38,000 Credits ? Debits ? Balance 12/31 50,000 The Cost of Goods Manufactured for the year was $415,000. The unadjusted Cost of Goods Sold for the year was: A. $453,000 B. $503,000 C. $403,000 D. $415,000

C. $736.00 Explanation Forming Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $138,000 + ($2.30 per machine-hour × 20,000 machine-hours) = $138,000 + $46,000 = $184,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $184,000 ÷ 20,000 machine-hours = $9.20 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.20 per machine-hour × 80 machine-hours = $736

Stoke Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming / Assembly Machine-hours: 20,000 / 15,000 Direct labor-hours: 2,000 / 7,000 Total fixed manufacturing overhead cost: $138,000 / $58,100 Variable manufacturing overhead per machine-hour: $2.30 / Variable manufacturing overhead per direct labor-hour: / $3.00 During the current month the company started and finished Job A460. The following data were recorded for this job: Job A460: Forming / Assembly Machine-hours: 80 / 10 Direct labor-hours: 30 / 50 The amount of overhead applied in the Forming Department to Job A460 is closest to: A. $664.00 B. $184.00 C. $736.00 D. $184,000.00

B. $736.00 Forming Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $138,000 + ($2.30 per machine-hour × 20,000 machine-hours) = $138,000 + $46,000 = $184,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $184,000 ÷ 20,000 machine-hours = $9.20 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.20 per machine-hour × 80 machine-hours = $736

Stoke Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming Assembly Machine-hours 20,000 15,000 Direct labor-hours Total fixed manufacturing $138,000 $58,100 overhead cost Variable manufacturing overhead $2.30 per machine-hour Variable manufacturing overhead $3.00 per direct labor-hour During the current month the company started and finished Job A460. The following data were recorded for this job: JobA460: Forming Assembly Machine-hours 80 10 Direct labor-hours 30 50 The amount of overhead applied in the Forming Department to Job A460 is closest to: A. $184.00 B. $736.00 C. $664.00 D. $184,000.00

D.$122,000 Cost of goods sold=Beginning inventory+Purchase of inventory-Ending inventory = 46,000+128,000-52,000= 122,000

Streif Incorporated, a local retailer, has provided the following data for the month of June: Merchandise inventory, beginning balance: $46,000 Merchandise inventory, ending balance: $52,000 Sales: $ 260,000 Purchases of merchandise inventory: $128,000 Selling Expense: $ 13,000 Administrative Expense: $ 40,000 The cost of goods sold for June was: A. $134,000 B. $128,000 C. $181,000 D.$122,000

C. $83,000 The ending balance in Raw Materials is computed as follows: Debit Balance, beginning: 37,000 Purchases: 480,000 Balance, ending*: 83,000 Credit Raw materials used in production 434,000 * #37,000 +$480,000-$434,000=$83,000

Tatar Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Beginning inventories: Raw material: $37,000 Work in process: $15,000 Result of operation: Raw materials purchased on account: $480,000 Raw materials (all direct) requisitioned for use in production: $434,000 How much is the ending balance in the Raw Materials inventory account? A. $37,00 B. $120,000 C. $83,000 D. $517,000

D. $546,750 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $568,000 ÷ 32,000 direct labor-hours = $17.75 per direct labor-hour Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred = $17.75 per direct labor-hour × 33,000 direct labor-hours = $585,750 Actual manufacturing overhead incurred ($176,000/ $420,000): $ 596,000 Manufacturing overhead applied to Work in Process: 585,750 Underapplied (overapplied) manufacturing overhead: $10,250 Unadjusted cost of goods sold: $ 1,376,000 Underapplied (overapplied) overhead: 10,250 Adjusted cost of goods sold: $ 1,386,250 Sales $ 2,498,000 Cost of goods sold (adjusted): 1,386,250 Gross margin: 1,111,750 Selling and administrative expenses: Selling and administrative salaries: 219,000 Other selling and administrative expenses: 346,000 565,000 Net operating income $ 546,750

Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: A. $1,111,750 B. $892,750 C. $765,750 D. $546,750

B. $123,000 Beginning finished goods inventory: $ 35,000 Add: Cost of goods manufactured: 136,000 Cost of goods available for sale: 171,000 Deduct: Ending finished goods inventory: 48,000 Unadjusted cost of goods sold: $123,000

Vogel Corporation's cost of goods manufactured last month was $136,000. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $48,000. Overhead was over applied by $6,000. Any under applied or over applied manufacturing overhead is closed out to cost of goods sold. How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold? A. $136,000 B. $123,000 C. $117,000 D. $171,000

B. Gross margin will increase.

When closing over applied manufacturing overhead to Cost of Goods Sold, which of the following would be true? A. Work in Process will decrease. B. Gross margin will increase. C. Net income will decrease. D. Cost of Goods Sold will increase.

A. the Work in Progress account.

When manufacturing overhead is applied to production, it is added to: A. the Work in Progress account. B. the Finished Goods inventory account. C. the Cost of Goods Sold account. D. the Raw materials account.

A. The amount paid to the individual who stains a chair.

Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory? A. The amount paid to the individual who stains a chair. B. The workman's compensation to insurance of the supervisor who oversees production. C. The factory utilities of the department in which production takes place. D. The cost of the glue in a chair.