Exam 3: Job-Order Costing: Cost Flows and External Reporting

During December, Moulding Corporation incurred $76,000 of actual Manufacturing Overhead costs.During the same period, the Manufacturing Overhead applied to Work in Process was $74,000. Required: Prepare journal entries to record the incurrence of manufacturing overhead and the application of manufacturing overhead to Work in Process.

The balance in the Finished Goods inventory account at the beginning of the year was:

The cost of goods sold (after adjustment for underapplied or overapplied manufacturing overhead)is:

When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would be true?

The entire difference between the actual manufacturing overhead cost for a period and the applied manufacturing overhead cost is typically closed to the Work In Process account.

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:

Testor Products uses a job-order costing system with a predetermined overhead rate based on machine-hours.The company closes out any underapplied or overapplied overhead to Cost of Goods Sold. Required: If overhead is overapplied, what adjustment does the company make to Cost of Goods Sold? Is Cost of Goods Sold increased or decreased? Why?

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:

The balance in the raw materials inventory account on May 30 was:

The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

In the Schedule of Cost of Goods Manufactured, Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory.

In October, Raddatz Inc.incurred $73,000 of direct labor costs and $6,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

The predetermined overhead rate is closest to:

Leelanau Corporation uses a job-order costing system.The following data are for last year: Leelanau applies overhead using a predetermined rate.What amount of overhead was applied to work in process last year?

Fisher Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs.The following information about Fisher Corporation's Work in Process inventory account has been provided for the month of May: During the month, Fisher Corporation's Work in Process inventory account was credited for $120,500, which represented the Cost of Goods Manufactured for the month.Only one job remained in process on May 31; this job had been charged with $9,600 of applied overhead cost.The amount of direct materials cost in the unfinished job would be:

During September at Renfro Corporation, $65,000 of raw materials were requisitioned from the storeroom for use in production.These raw materials included both direct and indirect materials.The indirect materials totaled $4,000.The journal entry to record this requisition would include a debit to Manufacturing Overhead of:

The ending balance in the Work in Process account is closest to:

The cost of goods manufactured for May was:

How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Manufacturing overhead is overapplied or underapplied by: