$\begin{array}{|l|l|l|} \hline \text { 1. Work in process } & \mathrm{XXX} & \\ \hline \text { Manufacturing overhead } & \mathrm{XXX} & \\\hline \text { Wages payable } & & \mathrm{XXX} \\ \hline \text { 2. Salary expense } & \mathrm{XXX} & \\\hline \text { Wages payable } & & \text { XXX } \\ \hline \text { 3. Manufacturing overhead } & \mathrm{XXX} & \\ \hline \text { Accumulated amortization } & & \mathrm{XXX} \\\hline \text { 4. Work in process } & \mathrm{XXX} & \\ \hline \text { Raw materials } & & \mathrm{XXX} \\ \hline \text { 5. Work in process } & \mathrm{XXX} & \\\hline \text { Manufacturing overhead } & & \mathrm{XXX} \\ \hline \text { 6. Manufacturing overhead } & \mathrm{XXX} & \\ \hline \text { Raw materials } & & \mathrm{XXX} \\\hline \text { 7. Finished goods } & \mathrm{XXX} & \\ \hline \text { Work in process } & & \mathrm{XXX} \\\hline \text { 8. Raw materials } & \mathrm{XXX} & \\ \hline \text { Accounts payable } & & \mathrm{XXX} \\ \hline \end{array}$ -Which entry transfers the cost of goods manufactured for the period?

A) 1. B) 4. C) 7. D) 5. A) 1. B) 4. C) 7. D) 5.

$\begin{array}{|l|l|l|} \hline \text { 1. Work in process } & \mathrm{XXX} & \\ \hline \text { Manufacturing overhead } & \mathrm{XXX} & \\\hline \text { Wages payable } & & \mathrm{XXX} \\ \hline \text { 2. Salary expense } & \mathrm{XXX} & \\\hline \text { Wages payable } & & \text { XXX } \\ \hline \text { 3. Manufacturing overhead } & \mathrm{XXX} & \\ \hline \text { Accumulated amortization } & & \mathrm{XXX} \\\hline \text { 4. Work in process } & \mathrm{XXX} & \\ \hline \text { Raw materials } & & \mathrm{XXX} \\ \hline \text { 5. Work in process } & \mathrm{XXX} & \\\hline \text { Manufacturing overhead } & & \mathrm{XXX} \\ \hline \text { 6. Manufacturing overhead } & \mathrm{XXX} & \\ \hline \text { Raw materials } & & \mathrm{XXX} \\\hline \text { 7. Finished goods } & \mathrm{XXX} & \\ \hline \text { Work in process } & & \mathrm{XXX} \\\hline \text { 8. Raw materials } & \mathrm{XXX} & \\ \hline \text { Accounts payable } & & \mathrm{XXX} \\ \hline \end{array}$ -Which entry records amortization on manufacturing equipment?

A) 1. B) 3. C) 4. D) 5. A) 1. B) 3. C) 4. D) 5.

Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,000 of direct material cost, $2,500 of direct labour cost, and $1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 70% of direct labour cost. Any under- or overapplied overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): $\begin{array}{|l|r|} \hline \text { Purchased during the month } & \$ 29,500 \\ \hline \text { Used in production } & \$ 30,500 \\ \hline \end{array}$ Labour: $\begin{array}{|l|r|} \hline \begin{array}{l} \text { Direct labour hours worked during the } \\ \text { month } \end{array} & 2,500 \\ \hline \text { Direct labour cost incurred } & \$ 26,500 \\ \hline \text { Indirect labour costs incurred } & \$ 5,500 \\ \hline \begin{array}{l} \text { Manufacturing overhead costs incurred } \\ \text { (total) } \end{array} & \$ 18,500 \\ \hline \end{array}$ Inventories: $\begin{array}{|l|r|} \hline \text { Raw materials (all direct) March 31 } & \$ 7,500 \\ \hline \text { Work in process, March 31 } & \$ 14,500 \\ \hline \end{array}$ Work in Process inventory contains $\$ 5,500$ of direct labour cost. -What is the amount of direct materials cost in the March 31 work in process inventory account?

A) $5,150. B) $9,350. C) $9,000. D) $3,850. A) $5,150. B) $9,350. C) $9,000. D) $3,850.

Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,000 of direct material cost, $2,500 of direct labour cost, and $1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 70% of direct labour cost. Any under- or overapplied overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): $\begin{array}{|l|r|} \hline \text { Purchased during the month } & \$ 29,500 \\ \hline \text { Used in production } & \$ 30,500 \\ \hline \end{array}$ Labour: $\begin{array}{|l|r|} \hline \begin{array}{l} \text { Direct labour hours worked during the } \\ \text { month } \end{array} & 2,500 \\ \hline \text { Direct labour cost incurred } & \$ 26,500 \\ \hline \text { Indirect labour costs incurred } & \$ 5,500 \\ \hline \begin{array}{l} \text { Manufacturing overhead costs incurred } \\ \text { (total) } \end{array} & \$ 18,500 \\ \hline \end{array}$ Inventories: $\begin{array}{|l|r|} \hline \text { Raw materials (all direct) March 31 } & \$ 7,500 \\ \hline \text { Work in process, March 31 } & \$ 14,500 \\ \hline \end{array}$ Work in Process inventory contains $\$ 5,500$ of direct labour cost. -What is the cost of goods manufactured for March?

A) $67,250. B) $67,300. C) $81,800. D) $75,550. A) $67,250. B) $67,300. C) $81,800. D) $75,550.

Under Lamprey Company's job-order costing system,manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate.During January,Lamprey's transactions included the following: $\begin{array}{|l|r|} \hline \text { Direct materials issued to production } & \$ 90,000 \\ \hline \text { Indirect materials issued to production } & 8,000 \\ \hline \text { Manufacturing overhead cost incurred } & 125,000 \\ \hline \text { Manufacturing overhead cost applied } & 113,000 \\ \hline \text { Direct labour cost incurred } & 107,000 \\ \hline \end{array}$ Lamprey Company had no beginning or ending inventories.What was the cost of goods manufactured for January?

A) $318,000. B) $310,000. C) $322,000. D) $330,000. A) $318,000. B) $310,000. C) $322,000. D) $330,000.

Sai Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 6 $\begin{array}{|l|r|r|} \hline & \text { Estimated } & \text { Actual } \\ \hline \begin{array}{l} \text { Manufacturing overhead } \\ \text { costs } \end{array} & \$ 50,000 & \$ 54,000 \\ \hline \text { Direct labour hours } & 20,000 \text { hours } & 24,000 \text { hours } \\ \hline \end{array}$ Job \#461 was completed during the year and the following costs had been incurred on that job: $\begin{array}{|l|r|} \hline \text { Direct materials: } & \$ 4,000 \\ \hline \text { Direct labour: } & \$ 1,500 \text { (at } \$ 5.00 \text { per direct labour hour) } \\ \hline \end{array}$ -How much of any underapplied or overapplied overhead would have been due to the fact that the estimated overhead allocation base was different from the actual?

A) $4,000. B) $6,000. C) $10,000. D) $14,000. A) $4,000. B) $6,000. C) $10,000. D) $14,000.

Worrell Corporation has a job-order costing system.The following debits (credits)appeared in the Work in Process account for the month of March: $\begin{array}{|l|r|} \hline \text { March 1, balance } & \$ 12,000 \\ \hline \text { March 31, direct materials } & 40,000 \\ \hline \text { March 31, direct labour } & 30,000 \\ \hline \text { March 31, manufacturing overhead applied } & 27,000 \\ \hline \text { March 31, to finished goods } & (100,000) \\ \hline \end{array}$ Worrell applies overhead at a predetermined rate of 90% of direct labour cost.Job No.232,the only job still in process at the end of March,has been charged with manufacturing overhead of $2,250.What was the amount of direct materials charged to Job No.232?

A) $2,250. B) $2,500. C) $4,250. D) $9,000. A) $2,250. B) $2,500. C) $4,250. D) $9,000.

The Bus Company uses a job-order costing system. The following information was recorded for September:$\begin{array}{l} \text { Added During September }\\ \begin{array} { | l | r | r | r | } \hline \text { Job Number } & \begin{array} { r } \text { September 1 } \\ \text { Inventory } \end{array} & \text { Direct Materials } & \text { Direct Labour } \\ \hline 1 & \$ 1,000 & \$ 300 & \$ 200 \\ \hline 2 & 1,400 & 250 & 300 \\ \hline 3 & 500 & 1,500 & 150 \\ \hline 4 & 750 & 4,000 & 400 \\ \hline \end{array} \end{array}$The direct labour wage rate is $10 per hour. Overhead is applied at the rate of $5 per direct labour hour. Jobs 1, 2, and 3 have been completed and transferred to finished goods. Job 2 has been delivered to the customer. -What is the ending Work in Process inventory?

A) $7,575. B) $5,350. C) $4,325. D) $5,150. A) $7,575. B) $5,350. C) $4,325. D) $5,150.

During the year,Paul Company used a predetermined overhead rate of $3.50 per direct labour hour,based on an estimate of 22,000 direct labour hours to be worked during the year.Actual overhead cost and activity during the year were: $\begin{array}{|l|l|} \hline \begin{array}{l} \text { Actual manufacturing overhead cost } \\ \text { incurred } \end{array} & \$ 90,000 \\ \hline \text { Actual direct labour hours worked } & 25,000 \\ \hline \end{array}$ What was the under- or overapplied overhead for the year?

A) $2,500 overapplied. B) $2,500 underapplied. C) $10,500 overapplied. D) $13,000 underapplied. A) $2,500 overapplied. B) $2,500 underapplied. C) $10,500 overapplied. D) $13,000 underapplied.

The following data are for Potras Company: $\begin{array}{|l|r|r|} \hline & \text { Beginning } & \text { Ending } \\ \hline \text { Finished goods inventory } & \$ 30,000 & \$ 40,000 \\ \hline \text { Work-in-process inventory } & 20,000 & 13,000 \\ \hline \text { Raw materials inventory } & 21,000 & 26,000 \\\hline \text { Purchases of raw materials } & 71,000 \\ \hline \text { Factory depreciation } & 5,000 \\ \hline \text { Other factory costs } & 10,000 \\ \hline \text { Direct labour } & 27,000 \\ \hline \text { Indirect labour } & 6,000 \\ \hline \text { Selling expense } & 12,000 \\\hline \begin{array}{l} \text { Over- or underapplied } \\ \text { overhead } \end{array} & -0 \\ \hline \end{array}$ -What is the cost of raw materials used in production?

A) $26,000. B) $71,000. C) $76,000. D) $66,000. A) $26,000. B) $71,000. C) $76,000. D) $66,000.

Exam 5: Systems Design: Job-Order Costing

1. Work in process Manufacturing overhead Wages payable 2. Salary expense Wages payable XXX 3. Manufacturing overhead Accumulated amortization 4. Work in process Raw materials 5. Work in process Manufacturing overhead 6. Manufacturing overhead Raw materials 7. Finished goods Work in process 8. Raw materials Accounts payable -Which entry transfers the cost of goods manufactured for the period?

(Multiple Choice)

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Question 61

Although direct labour may not be an appropriate allocation base in some industries,in others it continues to be a significant driver of manufacturing overhead.

(True/False)

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Question 62

Bitter Company incurs a direct labour rate of $15 per hour applies overhead to jobs on the basis of $1.25 per direct labour hour.If Job 107 shows $86,000 of direct material and $10,000 of manufacturing overhead applied,what is the total cost of job 107?

(Multiple Choice)

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Question 63

Job cost sheets supporting a normal job-order costing system contain entries for actual direct material,actual direct labour,and actual manufacturing overhead cost incurred in completing a job.

(True/False)

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Question 64

Brabec Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 19,700 hours.At the end of the year,actual direct labor-hours for the year were 17,700 hours,the actual manufacturing overhead for the year was $392,940,and manufacturing overhead for the year was underapplied by $35,400. Required: What must have been the estimated manufacturing overhead cost at the beginning of the year used setting the predetermined overhead rate?

(Essay)

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Question 65

1. Work in process Manufacturing overhead Wages payable 2. Salary expense Wages payable XXX 3. Manufacturing overhead Accumulated amortization 4. Work in process Raw materials 5. Work in process Manufacturing overhead 6. Manufacturing overhead Raw materials 7. Finished goods Work in process 8. Raw materials Accounts payable -Which entry records amortization on manufacturing equipment?

(Multiple Choice)

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Question 66

Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,000 of direct material cost, $2,500 of direct labour cost, and $1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 70% of direct labour cost. Any under- or overapplied overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): Purchased during the month \ 29,500 Used in production \ 30,500 Labour: Direct labour hours worked during the month 2,500 Direct labour cost incurred \ 26,500 Indirect labour costs incurred \ 5,500 Manufacturing overhead costs incurred (total) \ 18,500 Inventories: Raw materials (all direct) March 31 \ 7,500 Work in process, March 31 \ 14,500 Work in Process inventory contains $\$ 5,500$ of direct labour cost. -What is the amount of direct materials cost in the March 31 work in process inventory account?

(Multiple Choice)

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Question 67

Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,000 of direct material cost, $2,500 of direct labour cost, and $1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 70% of direct labour cost. Any under- or overapplied overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): Purchased during the month \ 29,500 Used in production \ 30,500 Labour: Direct labour hours worked during the month 2,500 Direct labour cost incurred \ 26,500 Indirect labour costs incurred \ 5,500 Manufacturing overhead costs incurred (total) \ 18,500 Inventories: Raw materials (all direct) March 31 \ 7,500 Work in process, March 31 \ 14,500 Work in Process inventory contains $\$ 5,500$ of direct labour cost. -What is the cost of goods manufactured for March?

(Multiple Choice)

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Question 68

Under Lamprey Company's job-order costing system,manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate.During January,Lamprey's transactions included the following: Direct materials issued to production \ 90,000 Indirect materials issued to production 8,000 Manufacturing overhead cost incurred 125,000 Manufacturing overhead cost applied 113,000 Direct labour cost incurred 107,000 Lamprey Company had no beginning or ending inventories.What was the cost of goods manufactured for January?

(Multiple Choice)

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Question 69

Sai Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 6 Estimated Actual Manufacturing overhead costs \ 50,000 \ 54,000 Direct labour hours 20,000 hours 24,000 hours Job \#461 was completed during the year and the following costs had been incurred on that job: Direct materials: \ 4,000 Direct labour: \ 1,500 (at \ 5.00 per direct labour hour) -How much of any underapplied or overapplied overhead would have been due to the fact that the estimated overhead allocation base was different from the actual?

(Multiple Choice)

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Question 70

Worrell Corporation has a job-order costing system.The following debits (credits)appeared in the Work in Process account for the month of March: March 1, balance \ 12,000 March 31, direct materials 40,000 March 31, direct labour 30,000 March 31, manufacturing overhead applied 27,000 March 31, to finished goods (100,000) Worrell applies overhead at a predetermined rate of 90% of direct labour cost.Job No.232,the only job still in process at the end of March,has been charged with manufacturing overhead of $2,250.What was the amount of direct materials charged to Job No.232?

(Multiple Choice)

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Question 71

The Bus Company uses a job-order costing system. The following information was recorded for September: Added During September Job Number September 1 Inventory Direct Materials Direct Labour 1 \ 1,000 \ 300 \ 200 2 1,400 250 300 3 500 1,500 150 4 750 4,000 400 The direct labour wage rate is $10 per hour. Overhead is applied at the rate of $5 per direct labour hour. Jobs 1, 2, and 3 have been completed and transferred to finished goods. Job 2 has been delivered to the customer. -What is the ending Work in Process inventory?

(Multiple Choice)

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Question 72

During the year,Paul Company used a predetermined overhead rate of $3.50 per direct labour hour,based on an estimate of 22,000 direct labour hours to be worked during the year.Actual overhead cost and activity during the year were: Actual manufacturing overhead cost incurred \ 90,000 Actual direct labour hours worked 25,000 What was the under- or overapplied overhead for the year?

(Multiple Choice)

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Question 73

Kelly Sportswear manufactures a specialty line of T-shirts.The company uses a job-order costing system.During March,the following costs were incurred on Job 1052: Direct materials: \ 13,700 Direct labour: \ 4,800 Manufacturing overhead was applied at the rate of $25 per machine hour,and Job 1052 required 800 machine hours.In addition,selling and shipping costs of $7,000 were incurred.Job 1052 consisted of 7,000 shirts and was completed on March 24.The total cost of job 1052 transferred from Work in Process to Finished Goods on March 24 is:

(Multiple Choice)

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Question 74

The following data are for Potras Company: Beginning Ending Finished goods inventory \ 30,000 \ 40,000 Work-in-process inventory 20,000 13,000 Raw materials inventory 21,000 26,000 Purchases of raw materials 71,000 Factory depreciation 5,000 Other factory costs 10,000 Direct labour 27,000 Indirect labour 6,000 Selling expense 12,000 Over- or underapplied overhead -0 -What is the cost of raw materials used in production?

(Multiple Choice)

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Question 75

Arthur Manufacturing Company produces a single product.The controller has asked for your help in preparing a schedule of cost of goods manufactured for the month just ended.The following information is available: 1.)Eleven thousand units were sold at $22 per unit. 2.)Thirteen thousand units requiring one unit each of raw materials were produced. 3.)Raw materials inventory at the beginning of the month was 1,100 units at $4 each. 4.)During the month,two purchases of raw materials were made: Purchase #1: 7,000 units at $5.00 each Purchase #2: 6,000 units at $5.50 each 5.)The company uses the first-in,first-out method of determining raw materials inventories. 6.)The work-in-process inventories were: Beginning of the month: 1,500 units valued at $17,000 End of the month: 1,500 units valued at $19,000 7.)Direct labour cost was $110,000. 8.)Overhead is applied to production on the basis of 65% of direct labour cost. Required: Prepare a schedule of cost of goods manufactured for the month.

(Essay)

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Question 76

The Tse Manufacturing Company uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. The company closes out any balance in the Manufacturing Overhead account to Cost of Goods Sold. During the year the company's Finished Goods inventory account was debited for $125,000 and credited for $110,000. The ending balance in the Finished Goods inventory account was $28,000. At the end of the year, manufacturing overhead was overapplied by $4,500. -What was the balance in the Finished Goods inventory account at the beginning of the year?

(Multiple Choice)

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Question 77

The labour time ticket contains a detailed summary of the direct and the indirect labour hours of an employee.

(True/False)

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Question 78

Manufacturing overhead is overapplied for the year by $3,000.The unadjusted cost of goods sold is $360,000.Closing manufacturing overhead into cost of goods sold will result in which of the following?

(Multiple Choice)

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Question 79

In a normal job-order costing system,the salary of the factory supervisor would usually be recorded as a debit to which of the following accounts?

(Multiple Choice)

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Question 80

Although direct labour may not be an appropriate allocation base in some industries,in others it continues to be a significant driver of manufacturing overhead.

Bitter Company incurs a direct labour rate of $15 per hour applies overhead to jobs on the basis of $1.25 per direct labour hour.If Job 107 shows $86,000 of direct material and $10,000 of manufacturing overhead applied,what is the total cost of job 107?

Job cost sheets supporting a normal job-order costing system contain entries for actual direct material,actual direct labour,and actual manufacturing overhead cost incurred in completing a job.

The labour time ticket contains a detailed summary of the direct and the indirect labour hours of an employee.

Manufacturing overhead is overapplied for the year by $3,000.The unadjusted cost of goods sold is $360,000.Closing manufacturing overhead into cost of goods sold will result in which of the following?

In a normal job-order costing system,the salary of the factory supervisor would usually be recorded as a debit to which of the following accounts?

Managerial Accounting and the Business Environment

Cost Terms,concepts,and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Process Costing

Activity-Based Costing: A Tool to Aid Decision Making

Variable Costing: A Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis

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