Exam 4: Systems Design: Process Costing

The balance in White Company's Work in Process inventory account was $15,000 on August 1 and $18,000 on August 31.The company incurred $30,000 in direct labour cost during August and requisitioned $25,000 in raw materials (all direct material).If the sum of the debits to the Manufacturing Overhead account total $28,000 for the month,and if the sum of the credits totalled $30,000,then:

Harrell Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs.At the beginning of the year,the company estimated its total manufacturing overhead cost at $400,000 and its direct labour-hours at 100,000 hours.The actual overhead cost incurred during the year was $350,000 and the actual direct labour hours incurred on jobs during the year was 90,000 hours.The manufacturing overhead for the year would be?

Job-order costing is used in manufacturing companies and process costing is used in service firms.

The entry to record depreciation on manufacturing equipment is:

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

The raw materials purchased during November totalled: