Deck 17: Job Order and Process Costing

Question 1

Which of the following companies would NOT use job order costing?

A) A lawn maintenance company
B) A legal firm
C) An auto repair shop
D) A beverage manufacturer

Answer 1

D

Question 2

Which of the following statements is FALSE?

A) A job order costing system would be used by manufacturers of custom made products.
B) A process costing system would be used by manufacturers of commodities, such as flour or sugar.
C) A service firm would likely use a job order costing system.
D) A print and copy shop would likely use a process costing system.

Answer 2

D

Question 3

Direct materials and direct labor are assigned to individual job cost records, and recorded with a debit to Work in process.

Answer 3

True

Question 4

Which of the following is an industry that would use a process costing system rather than a job order costing system?

A) Custom furniture manufacturer
B) Music production studio
C) Paint manufacturer
D) Home remodeling contractor

Question 5

Which of the following would be included in the journal entry to record direct labor costs actually incurred?

A) Debit to Work in process Inventory
B) Debit to Wages payable
C) Debit to Manufacturing overhead
D) Debit to Finished goods inventory

Question 6

Which of the following would be included in the journal entry to record the requisition of direct materials?

A) Debit to Cost of goods sold
B) Debit to Work in process inventory
C) Debit to Finished goods inventory
D) Debit to Materials inventory

Question 7

Process costing is used by companies that produce large numbers of identical units in a continuous fashion.

Question 8

Which of the following would be included in the journal entry to record the incurrence of indirect labor costs?

A) Debit to Manufacturing overhead
B) Debit to Wages payable
C) Debit to Finished goods inventory
D) Debit to Work in process inventory

Question 9

The entry to record the purchase of materials on account using a job order costing system would include a:

A) debit to materials inventory.
B) debit to accounts payable.
C) debit to work in process inventory.
D) credit to materials inventory.

Question 10

A job order costing system is useful in which of the following circumstances?

A) Mass production of a commodity
B) Manufacturing multiple products in separate batches
C) Continuous flow production of a single product
D) Manufacturing a product in a multi-step flow of production

Question 11

When materials are requisitioned for a job, the materials inventory account is debited.

Question 12

Indirect materials issued and indirect labor costs incurred are debited to the Manufacturing overhead account.

Question 13

Indirect materials and indirect labor are tracked to individual job costing records and recorded in the Work in process account.

Question 14

In job order costing, the journal entry to issue indirect materials to production should include which of the following?

A) Credit to Finished goods inventory
B) Credit to Materials inventory
C) Credit to Manufacturing overhead
D) Credit to Work in process inventory

Question 15

Accounting firms, building contractors, and healthcare providers are companies that use job order costing.

Question 16

Which of the following would be included in the journal entry to record the requisition of indirect materials?

A) Debit to Manufacturing overhead
B) Debit to Work in process inventory
C) Debit to Materials inventory
D) Debit to Finished goods inventory

Question 17

Job order costing is most likely used in which of the following industries?

A) Pharmaceutical manufacturing
B) Medical clinic
C) Oil refinery
D) Food and beverage manufacturing

Question 18

Work in process inventory is debited for the incurrence of both direct and indirect labor in a job costing system.

Question 19

When direct materials are requisitioned, the Work in process account will be debited.

Question 20

A process costing system is useful in which of the following circumstances?

A) Providing specialized services
B) Production of unique products
C) Production of multiple products in separate batches
D) Mass production of a single type of product

Question 21

All manufacturing overhead costs incurred are accumulated as debits to a general ledger account titled Manufacturing overhead.

Question 22

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. During June, the following transactions took place:
June 2: Issue $2,400 of direct materials and $200 of indirect materials to production.

-
Following this transaction, what was the balance in the Manufacturing overhead account?

A) $43,600
B) $43,400
C) $41,200
D) $41,000

Question 23

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. During June, the following transactions took place:
June 2: Issue $2,400 of direct materials and $200 of indirect materials to production.
June 13: Pay $7,500 of direct factory labor cost, and $14,100 of indirect factory labor cost.

-
Following these transactions, what was the balance in the Work in process inventory account?

A) $29,900
B) $9,900
C) $44,200
D) $22,200

Question 24

Specialty Wood Products company had the following manufacturing labor costs last month:
$$\begin{array} { | l | r | } \hline \text { Woudwarkers' weges } & \$ 100,000 \\\hline \text { Indlirect laborers' wages } & \$ 20,000 \\\hline \text { Maintenance personnel weges } & \$ 10,000 \\\hline\end{array}$$
Please provide the journal entry to record the incurrence of these labor costs.
$\begin{array}{|l|l|l|} \hline\quad \quad\quad \quad\quad \quad \quad \quad \quad \quad \quad \quad \quad &\quad \quad \quad & \quad \quad \quad \\\hline \text { } & \text { } & \text { }\\\hline \text { } & \text { } & \text { }\\ \hline\end{array}$

Question 25

When manufacturing overhead is allocated, the amount is recorded as a debit to Work in process and a credit to Manufacturing overhead.

Question 26

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. During June, the following transactions took place:
June 2: Issue $2,400 of direct materials and $200 of indirect materials to production.

-
Following this transaction, what was the balance in the Work in process inventory account?

A) $20,000
B) $22,400
C) $22,600
D) $20,200

Question 27

When manufacturing overhead costs are incurred, the amounts are recorded as a credit to Manufacturing overhead.

Question 28

Broxsie Fabrication Company issued $40,000 of direct materials to production and $5,500 of indirect materials to production. Which of the following transactions would correctly record the transaction?

A) $$\begin{array} { | l | r | r | } \hline \text { Materials inventory } & 45,500 & \\\hline \text { Finished goods inventory } & & 40,000 \\\hline \text { Work in process inventory } & & 5,500 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Work in process inventory } & 45,500 & \\\hline \text { Materials inventory } & & 45,500 \\\hline\end{array}$$
C) $\begin{array}{|l|r|r|}\hline \text { Work in process inventory } & 40,000 & \\\hline \text { Manufacturing overhead } & 5,500 & \\\hline \text { Materials inventory } & & 45,500 \\\hline\end{array}$
D) $$\begin{array} { | l | r | r | } \hline \text { Manufacturing overhead } & 45,500 & \\\hline \text { Materials inventory } & & 45,500 \\\hline\end{array}$$

Question 29

Carlton Manufacturing Company purchased $65,000 of raw materials on account. The materials will be used to produce furniture. Please provide the journal entry for the purchase of materials.
$\begin{array}{|l|l|l|} \hline\quad \quad\quad \quad\quad \quad \quad \quad \quad \quad \quad \quad \quad &\quad \quad \quad & \quad \quad \quad \\\hline \text { } & \text { } & \text { }\\\hline \end{array}$

Question 30

In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense.

Question 31

Broxsie Fabrication Company issued $40,000 of direct materials to production and $5,500 of indirect materials to production. Please prepare the journal entry to record the transaction.
$\begin{array}{|l|l|l|} \hline\quad \quad\quad \quad\quad \quad \quad \quad \quad \quad \quad \quad \quad &\quad \quad \quad & \quad \quad \quad \\\hline \text { } & \text { } & \text { }\\\hline \text { } & \text { } & \text { }\\ \hline\end{array}$

Question 32

The journal entry to issue $500 of direct materials and $30 of indirect materials to production includes which of the following?

A) Debit to Work in process for $500 and debit to Finished goods for $30
B) Debit to Manufacturing overhead for $530
C) Debit to Work in process for $500 and debit to Manufacturing overhead for $30
D) Debit to Work in process inventory for $530

Question 33

Which of the following correctly describes the term conversion costs?

A) The combination of direct plus indirect labor costs
B) The combination of indirect labor plus indirect materials cost
C) The combination of direct materials, direct labor, and manufacturing overhead costs
D) The combination of direct labor and manufacturing overhead costs

Question 34

Carlton Manufacturing Company purchased $65,000 of raw materials on account. The materials will be used to produce furniture. Which of the following journal entries correctly records this transaction?

A) $$\begin{array} { | l | r | r | } \hline \text { Accounts payable } & 65,000 & \\\hline \text { Materials inventory } & & 65,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Finished goods inventory } & 65,000 & \\\hline \text { Accounts payable } & & 65,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Work in process inventory } & 65,000 & \\\hline \text { Accounts payable } & & 65,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Materials inventory } & 65,000 & \\\hline \text { Accounts payable } & & 65,000 \\\hline\end{array}$$

Question 35

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. During June, the following transactions took place:
June 2: Issue $2,400 of direct materials and $200 of indirect materials to production.
June 13: Pay $7,500 of direct factory labor cost, and $14,100 of indirect factory labor cost.

-
Following these transactions, what was the balance in the Manufacturing overhead account?

A) $50,900
B) $55,300
C) $44,200
D) $65,200

Question 36

In a manufacturing operation, taxes and insurance for the plant should be debited to Manufacturing overhead.

Question 37

The journal entry to record the incurrence of $1,500 of direct labor and $200 of indirect labor includes which of the following?

A) Debit to Manufacturing overhead for $1,700
B) Debit to Work in process inventory for $1,500 and debit to Finished goods for $200
C) Debit to Work in process inventory for $1,700
D) Debit to Work in process for $1,500, debit to Manufacturing overhead for $200

Question 38

When manufacturing overhead is allocated, the amount is recorded as a debit to Finished goods and a credit to Work in process.

Question 39

The entry to allocate manufacturing overhead costs to work in process requires a debit to Manufacturing overhead.

Question 40

Specialty Wood Products company had the following manufacturing labor costs last month:
$$\begin{array} { | l | r | } \hline \text { Woudworkers' weges } & \$ 100,000 \\\hline \text { Indlirect laborers' wages } & \$ 20,000 \\\hline \text { Maintenance personnel weges } & \$ 10,000 \\\hline\end{array}$$
What is the journal entry to record the incurrence of these wages?

A) $$\begin{array} { | l | r | r | } \hline \text { Work in process inventory } & 100,000 & \\\hline \text { Manufacturing overhead } & 30,000 & \\\hline \text { Wages payable } & & 130,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Work in process inventory } & 130,000 & \\\hline \text { Wages payable } & & 130,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Wages payable } & 130,000 & \\\hline \text { Finished goods inventory } & & 100,000 \\\hline \text { Work in process inventory } & & 30,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Manufactuning overhead } & 130,000 & \\\hline \text { Wages payable } & & 130,000 \\\hline\end{array}$$

Question 41

Inglesias Company just completed job number 12. See details below.
Direct labor cost: $840
Direct materials cost: $1,100
Machine hours for milling machinery: 7
Direct labor hours: 22
Predetermined manufacturing overhead allocation rate: $90 per machine hour
Number of units of finished product: 25 units
What was cost per unit of finished product? (Please round to nearest cent.)

A) $77.88
B) $102.80
C) $12.40
D) $156.80

Question 42

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. What is the predetermined manufacturing overhead rate?

A) $6.32 per direct labor hour
B) $0.016 per direct labor hour
C) $63.20 per direct labor hour
D) $16.00 per direct labor hour

Question 43

Which of the following would NOT be considered a manufacturing overhead cost?

A) Insurance for the factory
B) Indirect labor cost
C) Property tax for the plant
D) Direct labor

Question 44

When calculating the predetermined manufacturing overhead rate, what is the correct basis of calculation?

A) Estimated overhead costs divided by the number of days in a year
B) Estimated amount of the cost driver divided by the estimated total overhead costs
C) Actual overhead costs of the prior year divided by the actual amount of the cost driver or allocation base
D) Estimated overhead costs divided by the estimated amount of the cost driver or allocation base

Question 45

Falstaff Products allocates manufacturing overhead with a rate of $62.50 per machine hour. Job number 300 was just completed. It used 12 machine hours. How much overhead was allocated to the job?

A) $625
B) $75
C) $750
D) $7,500

Question 46

Halcyon Company just completed job number 10B. See details below.
Direct labor cost: $2,040
Direct materials cost: $90
Machine hours for milling machinery: 5
Direct labor hours: 75
Predetermined manufacturing overhead allocation rate: $34.00 per direct labor hour
What was the total job cost?

A) $2,640
B) $4,680
C) $2,550
D) $4,590

Question 47

Which of the following correctly describes the predetermined manufacturing overhead rate?

A) The rate for factory utilities costs
B) The rate of actual overhead costs per day
C) The rate used to allocate overhead to production
D) The rate of increase in factory costs

Question 48

Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. What was the predetermined manufacturing overhead rate?

A) 80% of direct labor cost
B) $1.25 per direct labor hour
C) 125% of direct labor cost
D) $35.00 per direct labor hour

Question 49

Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows:
$$\begin{array} { l l } \text { Direct materials cost } & \$ 27,500 \\\text { Direct labor cost } & \$ 13,000 \\\text { Direct labor hours } & 400 \text { hours } \\\text { Units of product produced: } & 200 \text { crates }\end{array}$$

-
How much manufacturing overhead was allocated to the job?

A) $16,250
B) $10,400
C) $5,000
D) $34,375

Question 50

Which of the following describes the allocation base for allocating manufacturing overhead costs?

A) The factor that reflects the relationship between goods produced and the amount of overhead costs incurred
B) The estimated base amount of manufacturing overhead costs in a year
C) The percentage used to allocate direct labor to work in process
D) The formula for allocating depreciation expense over the life on an asset

Question 51

Which of the following would NOT be considered a manufacturing overhead cost?

A) Depreciation of plant equipment
B) Direct labor cost
C) Plant utilities costs
D) Indirect labor

Question 52

Haverhill Products just completed job number 440. In addition to direct labor and direct materials cost, Haverhill allocated $450 of manufacturing overhead to the job. Which of the following describes the correct journal entry to record the allocation of overhead to the job?

A) Debit Finished goods, credit Manufacturing overhead
B) Debit Work in process, credit Cash
C) Debit Manufacturing overhead, credit Work in process
D) Debit Work in process, credit Manufacturing overhead

Question 53

When is the predetermined manufacturing overhead rate for a given production year calculated?

A) At the end of the production year
B) Before the production year begins
C) After each job is completed
D) At the mid-point of the production year

Question 54

Falstaff Products estimates manufacturing overhead costs for the coming year at $500,000. Falstaff will allocate based on machine hours. Falstaff estimates 8,000 machine hours for the coming year. What is the predetermined manufacturing overhead rate?

A) $62.50 per machine hour
B) $0.016 per machine hour
C) $32.00 per machine hour
D) $6.25 per machine hour

Question 55

Falstaff Products estimated manufacturing overhead costs for the year at $500,000. Falstaff also estimated 8,000 machine hours for the year. Falstaff bases their predetermined manufacturing overhead rate on machine hours. On January 31, job 300 was completed. It required 12 machine hours to produce. How much manufacturing overhead was allocated to the job?

A) $62.50
B) $19.20
C) $750.00
D) $42.00

Question 56

Halcyon Company just completed job number 10-B. See details below.

Direct labor cost: $2,040
Direct materials cost: $90
Direct labor hours: 75
Predetermined manufacturing overhead allocation rate: $34.00 per direct labor hour
Number of units of finished product: 200 units

What was cost per unit of finished product? (Please round to nearest cent.)

A) $26.40
B) $46.80
C) $25.50
D) $23.40

Question 57

Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows:
$$\begin{array} { l l } \text { Direct materials cost } & \$ 27,500 \\\text { Direct labor cost } & \$ 13,000 \\\text { Direct labor hours } & 400 \text { hours } \\\text { Units of product produced: } & 200 \text { crates }\end{array}$$

-
How much was the total job cost?

A) $40,500
B) $56,750
C) $50,900
D) $74,875

Question 58

Which of the following correctly describes the term cost driver?

A) The inflation rate which causes costs to rise
B) The initial purchase price of direct materials
C) The primary factor which is correlated with the amount of cost incurred to produce a product
D) The total material, labor, and overhead cost of a completed job

Question 59

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardener completed job number A33, which included 15 direct labor hours. How much overhead was allocated to the job?

A) $948
B) $632
C) $1,204
D) $990

Question 60

Gardner Machine Shop uses a predetermined manufacturing overhead rate of $63.20 per direct labor hour. In January, Gardener completed job number A33, which included 15 direct labor hours. Which of the following correctly describes the journal entry needed to allocate overhead to the job?

A) Debit Finished goods for $948, credit Manufacturing overhead for $948
B) Debit Manufacturing overhead for $948, credit Work in process for $948
C) Debit Work in process for $948, credit Manufacturing overhead for $948
D) Debit Cost of goods sold for $948, credit Finished goods for $948

Question 61

Q-dot Manufacturing Company has provided the following information for the year 2012:
$$\begin{array} { l l } \text { Actual manufacturing overhead costs incurred } & \$ 199,900 \\\text { Manufacturing overhead costs allocated to production } & \$ 189,000 \\\text { Actual direct materials cost } & \$ 560,000 \\\text { Actual direct labor cost } & \$ 333,000 \\\text { Actual direct labor hours } & 9,450 \text { direct labor hours } \\\text { Actual machine hours } & 180,000 \text { machine hours }\end{array}$$
Based on the above information, what was Q-dot's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)

A) $7.60 per machine hour
B) 132% of direct labor cost
C) 80% of direct materials cost
D) $20 per direct labor hour

Question 62

Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
$$\begin{array} { l l } \text { Total manufacturing overhead estimated at the beginning of the year: } & \$ 140,000 \\\text { Total direct labor costs estimated at the beginning of the year: } & \$ 350,000 \\\text { Total direct labor hours estimated at the beginning of the year: } & 12,000 \text { direct labor hours } \\\text { Actual manufacturing overhead costs for the year: } & \$ 159,000 \\\text { Actual direct labor costs for the year: } & \$ 362,000 \\\text { Actual direct labor hours for the year: } & 12,400 \text { direct labor hours }\end{array}$$

-
Based on the data above, how much manufacturing overhead was allocated to production? (Please round to nearest whole dollar.)

A) $825,360
B) $905,000
C) $144,800
D) $159,280

Question 63

Haverhill Products just completed job number 440. In addition to direct labor and direct materials cost, Haverhill allocated $450 of manufacturing overhead to the job. Please provide the journal entry for the allocation of overhead.
$\begin{array}{|l|l|l|} \hline\quad \quad\quad \quad\quad \quad \quad \quad \quad \quad \quad \quad \quad &\quad \quad \quad & \quad \quad \quad \\\hline \text { } & \text { } & \text { }\\\hline \end{array}$

Question 64

During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $492,000 of manufacturing overhead costs. Overhead costs have been underallocated.

Question 65

Gardner Machine Shop uses a predetermined manufacturing overhead rate of $63.20 per direct labor hour. In January, Gardener completed job number A33, which included 15 direct labor hours. Please provide the journal entry to allocate overhead to the job.
$\begin{array}{|l|l|l|} \hline\quad \quad\quad \quad\quad \quad \quad \quad \quad \quad \quad \quad \quad &\quad \quad \quad & \quad \quad \quad \\\hline \text { } & \text { } & \text { }\\\hline \end{array}$

Question 66

The Quadrangle Fabrication Plant had a fire at the beginning of 2013 and most of the records for the year 2012 were lost. Some data for the year 2012 were located by the accountants and are shown below.
$$\begin{array} { l l } \text { Total manufacturing overhead estimated at the beginning of the year: } & \$ 105,840 \\\text { Total direct labor costs estimated at the beginning of the year: } & \$ 186,000 \\\text { Total direct labor hours estimated at the beginning of the year: } & 3,600 \text { direct labor hours } \\\text { Actual manufacturing overhead costs for the year: } & \$ 99,760 \\\text { Actual direct labor costs for the year: } & \$ 142,000 \\\text { Actual direct labor hours for the year: } & 2,950 \text { direct labor hours }\end{array}$$

-
The company bases its manufacturing overhead allocation on direct labor hours. What was the preliminary ending balance in the manufacturing overhead account prior to the year-end adjustment to clear the balance to zero? (Please round to the nearest whole dollar.)

A) $6,080 credit balance
B) $4,982 debit balance
C) $13,030 credit balance
D) $13,030 debit balance

Question 67

The Quadrangle Fabrication Plant had a fire at the beginning of 2013 and most of the records for the year 2012 were lost. Some data for the year 2012 were located by the accountants and are shown below.
$$\begin{array} { l l } \text { Total manufacturing overhead estimated at the beginning of the year: } & \$ 105,840 \\\text { Total direct labor costs estimated at the beginning of the year: } & \$ 186,000 \\\text { Total direct labor hours estimated at the beginning of the year: } & 3,600 \text { direct labor hours } \\\text { Actual manufacturing overhead costs for the year: } & \$ 99,760 \\\text { Actual direct labor costs for the year: } & \$ 142,000 \\\text { Actual direct labor hours for the year: } & 2,950 \text { direct labor hours }\end{array}$$

-
The company bases its manufacturing overhead allocation on direct labor hours. How much manufacturing overhead was allocated to production in 2012? (Please round to the nearest whole dollar.)

A) $105,816
B) $86,730
C) $99,769
D) $81,745

Question 68

The records at Smith and Jones Company show Job. No. 110 charged with $11,000 of direct materials and $12,500 of direct labor. Smith and Jones Company allocates manufacturing overhead at 85% of direct labor cost. What is the total cost of Job No. 110?

A) $20,625
B) $34,125
C) $22,500
D) $21,625

Question 69

The Quadrangle Fabrication Plant had a fire at the beginning of 2013 and most of the records for the year 2012 were lost. Some data for the year 2012 were located by the accountants and are shown below.
$$\begin{array} { l l } \text { Total manufacturing overhead estimated at the beginning of the year: } & \$ 105,840 \\\text { Total direct labor costs estimated at the beginning of the year: } & \$ 186,000 \\\text { Total direct labor hours estimated at the beginning of the year: } & 3,600 \text { direct labor hours } \\\text { Actual manufacturing overhead costs for the year: } & \$ 99,760 \\\text { Actual direct labor costs for the year: } & \$ 142,000 \\\text { Actual direct labor hours for the year: } & 2,950 \text { direct labor hours }\end{array}$$

-
The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined manufacturing overhead allocation rate for 2012? (Please round to the nearest cent.)

A) $35.87
B) $33.82
C) $29.40
D) $27.71

Question 70

In 2012, the Cameratta Company used a predetermined manufacturing overhead rate of $4.75 per machine hour. Information for the year is as follows:
$$\begin{array}{l}\text { Actual overhead costs incurred: }\\\begin{array} { l r } \text { Indirect materials } & \$ 5,200 \\\text { Indirect labor } & \$ 3,750 \\\text { Plant depreciation } & \$ 4,800 \\\text { Plant utilities and insurance } & \$ 9,530 \\\text { Other plant overhead costs } & \$ 12,700 \\\text { Total machine hours used during the year } & 7,520\end{array}\end{array}$$
What was the preliminary ending balance in the manufacturing overhead account before the year-end adjustment to clear the balance to zero?

A) Credit of $260
B) Debit of $550
C) Credit of $330
D) Debit of $260

Question 71

Davie Company used estimated direct labor hours of 180,000 and estimated manufacturing overhead costs of $990,000 in establishing its 2012 predetermined manufacturing overhead rate. Actual results showed:
$\begin{array}{|l|r|}\hline\text { Actual manufacturing overhead } & \$ 950,000 \\\hline \text { Allocated manufacturing overhead } & \$ 962,500 \\\hline\end{array}$

What was the number of direct labor hours worked during 2009?

A) 180,000
B) 186,000
C) 192,000
D) 175,000

Question 72

In 2012, the Doric Agricultural Products Company used a predetermined manufacturing overhead rate of 150% times direct labor cost. Information for the year is as follows:
$$\begin{array} { l r } \text { Actual direct materials cost } & \$ 812,500 \\\text { Actual direct labor cost } & \$ 180,000 \\\text { Actual overhead costs incurred: } & \$ 264,000 \\\text { Total direct labor hours } & 5,520\end{array}$$ What was the preliminary ending balance in the manufacturing overhead account, before the year-end adjustment to clear the balance to zero?

A) Credit of $6,000
B) Debit of $6,000
C) Credit of $5,900
D) Debit of $4,300

Question 73

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardener completed job number A33, which included 15 direct labor hours. Please provide the journal entry to allocate overhead to the job.
$\begin{array}{|l|l|l|} \hline\quad \quad\quad \quad\quad \quad \quad \quad \quad \quad \quad \quad \quad &\quad \quad \quad & \quad \quad \quad \\\hline \text { } & \text { } & \text { }\\\hline \end{array}$

Question 74

Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
$$\begin{array} { l l } \text { Total manufacturing overhead estimated at the beginning of the year: } & \$ 140,000 \\\text { Total direct labor costs estimated at the beginning of the year: } & \$ 350,000 \\\text { Total direct labor hours estimated at the beginning of the year: } & 12,000 \text { direct labor hours } \\\text { Actual manufacturing overhead costs for the year: } & \$ 159,000 \\\text { Actual direct labor costs for the year: } & \$ 362,000 \\\text { Actual direct labor hours for the year: } & 12,400 \text { direct labor hours }\end{array}$$

-
Based on the data above, what was the preliminary ending balance in the manufacturing overhead account, prior to the year-end adjustment to clear the balance to zero? (Please round to nearest whole dollar.)

A) $19,000 credit balance
B) $19,000 debit balance
C) $14,200 credit balance
D) $14,200 debit balance

Question 75

Forsyth Company uses estimated direct labor hours of 150,000 and estimated manufacturing overhead costs of $337,500 in establishing its 2012 predetermined manufacturing overhead rate. Actual results showed:
$\begin{array}{|l|r|}\hline\text { Actual manufacturing overhead } & \$ 346,500 \\\hline \text { Allocated manufacturing overhead } & \$ 343,800 \\\hline\end{array}$
The number of direct labor hours worked during the period was:

A) 154,000.
B) 152,800.
C) 150,000.
D) 146,000.

Question 76

Petraeus Fabrication Company has provided the following information for the year 2012:
$$\begin{array} { l l } \text { Actual manufacturing overhead costs incurred } & \$ 268,000 \\\text { Manufacturing overhead costs allocated to production } & \$ 259,200 \\\text { Actual direct materials cost } & \$ 800,000 \\\text { Actual direct labor cost } & \$ 144,000 \\\text { Actual direct labor hours } & 3,200 \text { direct labor hours } \\\text { Actual machine hours } & 10,900 \text { machine hours }\end{array}$$
Based on the above information, what was Petraeus's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)

A) $95 per direct labor hour
B) 180% of direct labor cost
C) $8.50 per machine hour
D) 12% of direct materials cost

Question 77

The cost of goods manufactured is recorded as a debit to the Work in process account.

Question 78

Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
$$\begin{array} { l l } \text { Total manufacturing overhead estimated at the beginning of the year: } & \$ 140,000 \\\text { Total direct labor costs estimated at the beginning of the year: } & \$ 350,000 \\\text { Total direct labor hours estimated at the beginning of the year: } & 12,000 \text { direct labor hours } \\\text { Actual manufacturing overhead costs for the year: } & \$ 159,000 \\\text { Actual direct labor costs for the year: } & \$ 362,000 \\\text { Actual direct labor hours for the year: } & 12,400 \text { direct labor hours }\end{array}$$

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Based on the data above, what was the allocation rate for 2012? (Please round to nearest whole percent.)

A) 40%
B) 44%
C) 250%
D) 228%

Question 79

Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows:
$$\begin{array} { l l } \text { Direct materials cost } & \$ 27,500 \\\text { Direct labor cost } & \$ 13,000 \\\text { Direct labor hours } & 400 \text { hours } \\\text { Units of product produced: } & 200 \text { crates }\end{array}$$

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How much was the cost per unit (cost per crate) of finished product? (Please round to the nearest cent.)

A) $374.38
B) $202.50
C) $254.50
D) $283.75

Question 80

Felton Quality Productions Company has provided the following information for the year 2012:
$$\begin{array} { l l } \text { Actual manufacturing overhead costs incurred } & \$ 89,770 \\\text { Manufacturing overhead costs allocated to production } & \$ 95,200 \\\text { Actual direct materials cost } & \$ 224,000 \\\text { Actual direct labor cost } & \$ 93,750 \\\text { Actual direct labor hours } & 18,500 \text { direct labor hours } \\\text { Actual machine hours } & 56,000 \text { machine hours }\end{array}$$
Based on the above information, what was Felton's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)

A) $1.70 per machine hour
B) 52% of direct labor cost
C) 180% of direct materials cost
D) $24.80 per direct labor hour