Question 1

Messana Corporation reported the following data for the month of August:   The direct materials cost for August is:

Accepted Answer

A) $73,000 
B) $69,000 
C) $81,000 
D) $57,000 
A) $73,000 
B) $69,000 
C) $81,000 
D) $57,000

Question 2

Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July.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 $51,000 and the total of the credits to the account was $64,000.Which of the following statements is true?

Accepted Answer

A) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $51,000. 
B) Manufacturing overhead applied to Work in Process for the month was $64,000. 
C) Manufacturing overhead for the month was underapplied by $13,000. 
D) Actual manufacturing overhead incurred during the month was $64,000. 
A) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $51,000. 
B) Manufacturing overhead applied to Work in Process for the month was $64,000. 
C) Manufacturing overhead for the month was underapplied by $13,000. 
D) Actual manufacturing overhead incurred during the month was $64,000.

Question 3

Smallwood Corporation has provided the following data concerning manufacturing overhead for January:   The Corporation's Cost of Goods Sold was $223,000 prior to closing out its Manufacturing Overhead account.The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold.Which of the following statements is true?

Accepted Answer

A) Manufacturing overhead for the month was overapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000 
B) Manufacturing overhead for the month was underapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $218,000 
C) Manufacturing overhead for the month was underapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000 
D) Manufacturing overhead for the month was overapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $218,000 
A) Manufacturing overhead for the month was overapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000 
B) Manufacturing overhead for the month was underapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $218,000 
C) Manufacturing overhead for the month was underapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000 
D) Manufacturing overhead for the month was overapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $218,000

Question 4

During October,Dorinirl Corporation incurred $60,000 of direct labor costs and $5,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Accepted Answer

A) credit to Work in Process of $60,000 
B) credit to Work in Process of $65,000 
C) debit to Work in Process of $65,000 
D) debit to Work in Process of $60,000 
A) credit to Work in Process of $60,000 
B) credit to Work in Process of $65,000 
C) debit to Work in Process of $65,000 
D) debit to Work in Process of $60,000

Question 5

On August 1,Shead Corporation had $35,000 of raw materials on hand.During the month,the company purchased an additional $56,000 of raw materials.During August,$69,000 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 $6,000.Prepare journal entries to record these events.Use those journal entries to answer the following questions: The debits entered in the Raw Materials account during the month of August total:

Accepted Answer

A) $91,000 
B) $69,000 
C) $35,000 
D) $56,000 
A) $91,000 
B) $69,000 
C) $35,000 
D) $56,000

Question 6

Spectrum Manufacturing had the following information in its records at the end of the year:     What was the balance in Manufacturing Overhead,and when closed what will the effect be on gross margin?

Accepted Answer

A) $3,000 underapplied,and increase 
B) $3,000 overapplied,and increase 
C) $3,000 underapplied,and decrease 
D) $3,000 overapplied,and decrease 
A) $3,000 underapplied,and increase 
B) $3,000 overapplied,and increase 
C) $3,000 underapplied,and decrease 
D) $3,000 overapplied,and decrease

Question 7

Acton Corporation,which applies manufacturing overhead on the basis of machine-hours,has provided the following data for its most recent year of operations.   The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The overhead for the year was:

Accepted Answer

A) $732 underapplied 
B) $1,348 underapplied 
C) $732 overapplied 
D) $1,348 overapplied 
A) $732 underapplied 
B) $1,348 underapplied 
C) $732 overapplied 
D) $1,348 overapplied

Question 8

Hudek Inc. ,a manufacturing Corporation,has provided the following data for the month of July.The balance in the Work in Process inventory account was $20,000 at the beginning of the month and $10,000 at the end of the month.During the month,the Corporation incurred direct materials cost of $50,000 and direct labor cost of $22,000.The actual manufacturing overhead cost incurred was $58,000.The manufacturing overhead cost applied to Work in Process was $56,000.The cost of goods manufactured for July was:

Accepted Answer

A) $138,000 
B) $140,000 
C) $130,000 
D) $128,000 
A) $138,000 
B) $140,000 
C) $130,000 
D) $128,000

Question 9

Tondre Inc.has provided the following data for the month of July:   The adjusted cost of goods sold that appears on the income statement for July is:

Accepted Answer

A) $201,000 
B) $198,000 
C) $219,000 
D) $210,000 
A) $201,000 
B) $198,000 
C) $219,000 
D) $210,000

Question 10

Overapplied manufacturing overhead means that:

Accepted Answer

A) the applied manufacturing overhead cost was less than the actual manufacturing overhead cost. 
B) the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost. 
C) the estimated manufacturing overhead cost was less than the actual manufacturing overhead cost. 
D) the estimated manufacturing overhead cost was less than the applied manufacturing overhead cost. 
A) the applied manufacturing overhead cost was less than the actual manufacturing overhead cost. 
B) the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost. 
C) the estimated manufacturing overhead cost was less than the actual manufacturing overhead cost. 
D) the estimated manufacturing overhead cost was less than the applied manufacturing overhead cost.

Question 11

The Work in Process inventory account of a manufacturing Corporation shows a balance of $18,000 at the end of an accounting period.The job cost sheets of the two uncompleted jobs show charges of $6,000 and $3,000 for materials,and charges of $4,000 and $2,000 for direct labor.From this information,it appears that the Corporation is using a predetermined overhead rate,as a percentage of direct labor costs,of:

Accepted Answer

A) 50% 
B) 200% 
C) 300% 
D) 20% 
A) 50% 
B) 200% 
C) 300% 
D) 20%

Question 12

Caber 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 $60,600.Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900.The company's predetermined overhead rate for the year was $10.10 per machine-hour. The applied manufacturing overhead for the year was closest to:

Accepted Answer

A) $58,017 
B) $59,590 
C) $60,600 
D) $58,597 
A) $58,017 
B) $59,590 
C) $60,600 
D) $58,597

Question 13

At the beginning of the year,manufacturing overhead for the year was estimated to be $477,590.At the end of the year,actual direct labor-hours for the year were 29,000 hours,the actual manufacturing overhead for the year was $472,590,and manufacturing overhead for the year was overapplied by $110.If the predetermined overhead rate is based on direct labor-hours,then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been:

Accepted Answer

A) 29,300 direct labor-hours 
B) 28,987 direct labor-hours 
C) 28,993 direct labor-hours 
D) 29,000 direct labor-hours 
A) 29,300 direct labor-hours 
B) 28,987 direct labor-hours 
C) 28,993 direct labor-hours 
D) 29,000 direct labor-hours

Question 14

Caber 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 $60,600.Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900.The company's predetermined overhead rate for the year was $10.10 per machine-hour. The predetermined overhead rate was based on how many estimated machine-hours?

Accepted Answer

A) 5,783 
B) 6,000 
C) 5,900 
D) 5,842 
A) 5,783 
B) 6,000 
C) 5,900 
D) 5,842

Question 15

Pirkl Corporation has provided the following data for the month of March:     Required:
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.

Accepted Answer

The answer of Pirkl Corporation has provided the following data...

Question 16

Messana Corporation reported the following data for the month of August:   The adjusted cost of goods sold that appears on the income statement for August is:

Accepted Answer

A) $229,000 
B) $211,000 
C) $209,000 
D) $247,000 
A) $229,000 
B) $211,000 
C) $209,000 
D) $247,000

Question 17

During February,Irving Corporation incurred $65,000 of actual Manufacturing Overhead costs.During the same period,the Manufacturing Overhead applied to Work in Process was $60,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

Accepted Answer

A) debit to Work in Process of $65,000 
B) credit to Work in Process of $65,000 
C) credit to Manufacturing Overhead of $60,000 
D) debit to Manufacturing Overhead of $60,000 
A) debit to Work in Process of $65,000 
B) credit to Work in Process of $65,000 
C) credit to Manufacturing Overhead of $60,000 
D) debit to Manufacturing Overhead of $60,000

Question 18

Meyers Corporation had the following inventory balances at the beginning and end of November:   During November,$39,000 in raw materials (all direct materials)were drawn from inventory and used in production.The company's predetermined overhead rate was $8 per direct labor-hour,and it paid its direct labor workers $10 per hour.A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account.The ending Work in Process inventory account contained $4,700 of direct materials cost.The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The raw materials purchased during November totaled:

Accepted Answer

A) $42,000 
B) $45,000 
C) $36,000 
D) $39,000 
A) $42,000 
B) $45,000 
C) $36,000 
D) $39,000

Question 19

On March 1,Metevier Corporation had $37,000 of raw materials on hand.During the month,the company purchased an additional $62,000 of raw materials.During March,$69,000 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 $6,000. The journal entry to record the purchase of raw materials would include a:

Accepted Answer

A) credit to Raw Materials of $62,000 
B) credit to Raw Materials of $99,000 
C) debit to Raw Materials of $99,000 
D) debit to Raw Materials of $62,000 
A) credit to Raw Materials of $62,000 
B) credit to Raw Materials of $99,000 
C) debit to Raw Materials of $99,000 
D) debit to Raw Materials of $62,000

Question 20

Christofferse Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below:   Required:
Compute the company's predetermined overhead rate for the recently completed year.

Accepted Answer

Estimated total manufacturing

Messana Corporation reported the following data for the month of August: The direct materials cost for August is:

During October,Dorinirl Corporation incurred $60,000 of direct labor costs and $5,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Spectrum Manufacturing had the following information in its records at the end of the year: What was the balance in Manufacturing Overhead,and when closed what will the effect be on gross margin?

Tondre Inc.has provided the following data for the month of July: The adjusted cost of goods sold that appears on the income statement for July is:

Overapplied manufacturing overhead means that:

Pirkl Corporation has provided the following data for the month of March: Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.

Messana Corporation reported the following data for the month of August: The adjusted cost of goods sold that appears on the income statement for August is:

During February,Irving Corporation incurred $65,000 of actual Manufacturing Overhead costs.During the same period,the Manufacturing Overhead applied to Work in Process was $60,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

Christofferse Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below: Required: Compute the company's predetermined overhead rate for the recently completed year.

Managerial Accounting and Cost Concepts

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variance

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

Filters

Exam 2: Job-Order Costing: Calculating Unit Production Costs

Messana Corporation reported the following data for the month of August: The direct materials cost for August is:

During October,Dorinirl Corporation incurred $60,000 of direct labor costs and $5,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Spectrum Manufacturing had the following information in its records at the end of the year: What was the balance in Manufacturing Overhead,and when closed what will the effect be on gross margin?

Tondre Inc.has provided the following data for the month of July: The adjusted cost of goods sold that appears on the income statement for July is:

Overapplied manufacturing overhead means that:

Pirkl Corporation has provided the following data for the month of March: Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.

Messana Corporation reported the following data for the month of August: The adjusted cost of goods sold that appears on the income statement for August is:

During February,Irving Corporation incurred $65,000 of actual Manufacturing Overhead costs.During the same period,the Manufacturing Overhead applied to Work in Process was $60,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

Christofferse Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below: Required: Compute the company's predetermined overhead rate for the recently completed year.

Managerial Accounting and Cost Concepts

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variance

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

Filters