Deck 5: Systems Design: Job-Order Costing

Question 1

Which of the following statements is true? I.Overhead application may be made slowly as a job is worked on.
II)Overhead application may be made in a single application at the time of completion of the job.
III)Overhead application should be made to any job not completed at year-end in order to properly value the work in process inventory.

A)Only statement I is true.
B)Only statement II is true.
C)Both statements I and II are true.
D)Statements I,II,and III are all true.

Answer 1

D

Question 2

Which of the following is the correct formula to compute the predetermined overhead Rate?

A)Estimated total units in the allocation base divided by estimated total manufacturing overhead costs.
B)Estimated total manufacturing overhead costs divided by estimated total units in the allocation base.
C)Actual total manufacturing overhead costs divided by estimated total units in the allocation base.
D)Estimated total manufacturing overhead costs divided by actual total units in the allocation base.

Answer 2

B

Question 3

The three cost categories appearing on a job cost sheet are: selling expense,manufacturing expense,and administrative expense.

Answer 3

False

Question 4

The use of predetermined overhead rates in a job-order cost system makes it possible to estimate the total cost of a given job as soon as production is completed.

Question 5

Process costing is used in those situations where many different products or services are produced each period to customer specifications.

Question 6

Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?

A)Fast food restaurant
B)Shipbuilding
C)Crude oil refining
D)Candy making

Question 7

The manufacturing operation that would be most likely to use a job-order costing system is:

A)toy manufacturing.
B)candy manufacturing.
C)crude oil refining.
D)shipbuilding.

Question 8

The cost of goods manufactured equals beginning work in process inventory,plus the total manufacturing cost charged to jobs,less ending work in process inventory.

Question 9

The cost of goods sold in a single product company is equal to the number of units sold multiplied by any overapplied overhead or underapplied overhead.

Question 10

Job-order costing is used in those situations where units of a product are homogeneous,such as in the manufacture of sugar.

Question 11

A process cost system is employed in those situations where:

A)many different products,jobs,or batches of production are being produced each period.
B)where manufacturing involves a single,homogeneous product that flows evenly through the production process on a continuous basis.
C)a service is performed such as in a law firm or an accounting firm.
D)full or absorption cost approach is not employed.

Question 12

To apply overhead to a job,actual overhead costs are added to manufacturing overhead.

Question 13

Period costs are expensed as incurred,rather than charged to jobs.

Question 14

What document is used to determine the actual amount of direct labor to record on a job cost sheet?

A)Time ticket
B)Payroll register
C)Production order
D)Wages payable account

Question 15

Cost of goods sold equals beginning finished goods inventory,plus cost of goods manufactured,plus ending finished goods inventory.

Question 16

The fact that one department may be labor intensive while another department is machine intensive explains in part why multiple predetermined overhead rates are often used in larger companies.

Question 17

If the actual manufacturing overhead costs for a period exceed the manufacturing overhead costs applied,then overhead would be considered to be overapplied.

Question 18

If the amount charged to Manufacturing Overhead Incurred account during a period is less than the manufacturing overhead charged to jobs during the period,overhead was underapplied.

Question 19

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

A)Machine-hours
B)Power consumption
C)Direct labor-hours
D)Machine setups

Question 20

The process of assigning overhead cost to jobs is known as applying overhead.

Question 21

The Work in Process inventory account of a manufacturing company 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 company is using a predetermined overhead rate,as a percentage of direct labor costs,of:

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

Question 22

The following data have been recorded for recently completed Job 501 on its job cost sheet.Direct materials cost was $3,067.A total of 30 direct labor-hours and 104 machine-hours were worked on the job.The direct labor wage rate is $12 per labor-hour.The company applies manufacturing overhead on the basis of machine-hours.The predetermined overhead rate is $11 per machine-hour.The total cost for the job on its job cost sheet would be:

A)$4,571
B)$3,757
C)$3,090
D)$3,427

Question 23

Job 607 was recently completed.The following data have been recorded on its job cost sheet: The company applies manufacturing overhead on the basis of machine-hours.The predetermined overhead rate is $14 per machine-hour.The total cost that would be recorded on the job cost sheet for Job 607 would be:

A)$4,107
B)$6,319
C)$3,432
D)$4,863

Question 24

Overapplied overhead occurs when:

A)applied overhead exceeds actual overhead.
B)applied overhead exceeds estimated overhead.
C)actual overhead exceeds estimated overhead.
D)budgeted overhead exceeds actual overhead.

Question 25

Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost.At the end of October,Juanita had one job still in process.The job cost sheet for this job contained the following information: An additional $100 of labor was needed in November to complete this job.For this job,how much cost should Juanita have transferred to finished goods inventory in November when it was completed?

A)$1,330
B)$500
C)$1,230
D)$1,730

Question 26

Kelson Company applies overhead to jobs on the basis of 60% of direct labor cost.If Job 201 shows $27,000 of manufacturing overhead applied,the direct labor cost on the job was:

A)$16,200
B)$27,000
C)$37,800
D)$45,000

Question 27

Dagnon Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the total estimated manufacturing overhead was $299,130.At the end of the year,actual direct labor-hours for the year were 17,400 hours,manufacturing overhead for the year was overapplied by $13,850,and the actual manufacturing overhead was $294,130.The predetermined overhead rate for the year must have been closest to:

A)$17.70
B)$17.19
C)$18.22
D)$16.90

Question 28

At the beginning of the year,manufacturing overhead for the year was estimated to be $702,450.At the end of the year,actual direct labor-hours for the year were 33,100 hours,the actual manufacturing overhead for the year was $697,450,and manufacturing overhead for the year was overapplied by $40,680.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:

A)31,500 direct labor-hours
B)29,452 direct labor-hours
C)31,276 direct labor-hours
D)33,100 direct labor-hours

Question 29

Rio Manufacturing Company uses a job-order costing system.At the beginning of February,Rio only had one job in process,Job #594.The direct costs assigned to this job at that time were $800 of materials and $650 of labor.Job #594 was finished during February incurring additional direct costs of $120 for materials and $370 for labor.Job #595 was started and finished during February.The direct costs assigned to this job were $310 for materials and $190 for labor.Job #596 was started during February but was not finished by the end of the month.The direct costs assigned to this job were $740 for materials and $300 for labor.Rio applies manufacturing overhead to its products at a rate of 200% of direct labor cost.What is Rio's cost of goods manufactured for February?

A)$2,440
B)$3,750
C)$4,860
D)$6,500

Question 30

Harrell Company uses a predetermined overhead rate based on direct labor-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 labor-hours at 100,000 hours.The actual overhead cost incurred during the year was $350,000 and the actual direct labor-hours incurred on jobs during the year was 90,000 hours.The manufacturing overhead for the year would be:

A)$10,000 underapplied
B)$10,000 overapplied
C)$50,000 underapplied
D)$50,000 overapplied

Question 31

Coggin Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.In April the company completed job F68F that consisted of 24,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job F68F shows that the total cost for the job was $1,408,800.During the month,the actual manufacturing overhead cost incurred was $464,400 and the manufacturing overhead cost applied to job F68F was $460,800.And during the month,15,000 completed units from job F68F were sold.No other products were sold.The cost of goods sold that would appear on the income statement for April is closest to:

A)$1,408,800
B)$1,412,400
C)$884,100
D)$876,900

Question 32

Dowan Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Last year Dowan Company incurred $156,600 in actual manufacturing overhead cost.Overhead was underapplied by $12,600 for the year.If the predetermined overhead rate is $6.00 per direct labor-hour,how many hours did the company work during the year?

A)26,000 hours
B)24,000 hours
C)28,200 hours
D)25,000 hours

Question 33

Paulson Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The company has provided the following estimated costs for next year: Paulson estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year.The predetermined overhead rate per machine-hour will be:

A)$1.60
B)$2.10
C)$1.00
D)$1.05

Question 34

Which of the following situations always results in underapplied overhead?

A)Actual overhead is greater than applied overhead
B)Actual overhead is less than applied overhead
C)Estimated overhead is greater than actual overhead
D)Estimated overhead is less than actual overhead

Question 35

Crimp Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 15,000 hours and the total estimated manufacturing overhead was $258,000.At the end of the year,actual direct labor-hours for the year were 13,100 hours and the actual manufacturing overhead for the year was $253,000.Overhead at the end of the year was:

A)$27,680 overapplied
B)$32,680 overapplied
C)$27,680 underapplied
D)$32,680 underapplied

Question 36

Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.For the month of August,Karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours.Actual results for the period were manufacturing overhead costs of $290,000 and 76,000 machine-hours.As a result,Karvel would have:

A)applied more overhead to jobs than the actual amount of overhead cost for the year.
B)applied less overhead to jobs than the actual amount of overhead cost for the year.
C)applied an amount of overhead to jobs that was equal to the actual amount of overhead.
D)found it necessary to recalculate the predetermined overhead rate.

Question 37

Smothers Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.In June the company completed job Y52D that consisted of 23,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job Y52D shows the following costs: During the month,the actual manufacturing overhead cost incurred was $274,850 and 4,000 completed units from job Y52D were sold.No other products were sold. The cost of goods sold that would appear on the income statement for June is closest to:

A)$1,404,160
B)$242,850
C)$245,150
D)$1,403,000

Question 38

In a job-order costing system,the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period:

A)is deducted on the Income Statement as overapplied overhead.
B)is closed to Cost of Goods Sold.
C)is transferred to Finished Goods at the end of the period.
D)is part of the ending balance of the Work in Process inventory account.

Question 39

Dukes Company used a predetermined overhead rate this year of $2 per direct labor-hour,based on an estimate of 20,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: The underapplied or overapplied overhead for the year was:

A)$1,000 underapplied
B)$1,000 overapplied
C)$3,000 underapplied
D)$3,000 overapplied

Question 40

Brabo Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 15,700 hours.At the end of the year,actual direct labor-hours for the year were 16,700 hours,the actual manufacturing overhead for the year was $352,960,and manufacturing overhead for the year was overapplied by $27,800.The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

A)$327,124
B)$357,960
C)$380,760
D)$347,960

Question 41

Ashe Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In January the company completed job Z87W that consisted of 29,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job Z87W shows that the job's total cost was $1,850,200.During the month,17,000 completed units from job Z87W were sold.No other products were sold during the month.The unadjusted cost of goods sold (in other words,the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for January is closest to:

A)$1,850,200
B)$1,800,900
C)$1,084,600
D)$1,097,350

Question 42

Acer 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 applied manufacturing overhead for the year is closest to:

A)$218,581
B)$221,023
C)$223,998
D)$221,556

Question 43

Hudek Inc. ,a manufacturing company,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 company 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 jobs was $56,000.The cost of goods manufactured for July was:

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

Question 44

Hiraki Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In March the company completed job B36H that consisted of 29,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job B36H shows the following costs: During the month,the actual manufacturing overhead cost incurred was $330,600 and 16,000 completed units from job B36H were sold.No other products were sold during the month.The unadjusted cost of goods sold (in other words,the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for March is closest to:

A)$1,441,300
B)$828,800
C)$820,800
D)$1,502,200

Question 45

Skalla Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In May the company completed job R71G that consisted of 14,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job R71G shows that the job's total cost was $722,400.During the month,the actual manufacturing overhead cost incurred was $247,380 and the manufacturing overhead cost applied was $263,200.And during the month,5,000 completed units from job R71G were sold.No other products were sold during the month.The unadjusted cost of goods sold (in other words,the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for May is closest to:

A)$684,600
B)$252,350
C)$258,000
D)$722,400

Question 46

Borys Inc. ,which uses job-order costing,has provided the following data for April: The cost of goods manufactured for April is closest to:

A)$226,000
B)$234,000
C)$231,000
D)$223,000

Question 47

Acer 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:

A)$2,994 underapplied
B)$2,444 overapplied
C)$2,444 underapplied
D)$2,994 overapplied

Question 48

Erholm Inc.has provided the following data for the month of March.The balance in the Finished Goods inventory account at the beginning of the month was $43,000 and at the end of the month was $42,000.The cost of goods manufactured for the month was $221,000.The actual manufacturing overhead cost incurred was $45,000 and the manufacturing overhead cost applied to jobs was $49,000.The adjusted cost of goods sold that would appear on the income statement for March is:

A)$218,000
B)$220,000
C)$222,000
D)$221,000

Question 49

Baniaga Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company's cost of goods manufactured for May was $187,000;its beginning finished goods inventory was $53,000;its ending finished goods inventory was $47,000;its manufacturing overhead was underapplied by $3,000.The cost of goods sold that appears on the income statement for May and that has been adjusted for any underapplied or overapplied overhead is closest to:

A)$181,000
B)$196,000
C)$187,000
D)$190,000

Question 50

The actual manufacturing overhead incurred at Huberty Corporation during January was $73,000,while the manufacturing overhead applied to jobs was $78,000.The company's Cost of Goods Sold was $349,000 prior to adjusting for any underapplied or overapplied overhead.Which of the following statements is true?

A)Manufacturing overhead was overapplied by $5,000;Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $354,000
B)Manufacturing overhead was underapplied by $5,000;Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $344,000
C)Manufacturing overhead was underapplied by $5,000;Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $354,000
D)Manufacturing overhead was overapplied by $5,000;Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $344,000

Question 51

Roeschley Inc. ,which uses job-order costing,has provided the following data for June: The unadjusted cost of goods sold (in other words,cost of goods sold before adjusting for any underapplied or overapplied overhead) for June is closest to:

A)$186,000
B)$183,000
C)$197,000
D)$193,000

Question 52

Scarnato Inc. ,which uses job-order costing,has provided the following data for May: The cost of goods manufactured for May is closest to:

A)$198,000
B)$203,000
C)$206,000
D)$195,000

Question 53

Acer 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 predetermined overhead rate is closest to:

A)$49.23
B)$49.90
C)$49.78
D)$50.45

Question 54

Jarratt Inc. ,a manufacturing company,has provided the following data for the month of September.The balance in the Work in Process inventory account was $21,000 at the beginning of the month and $24,000 at the end of the month.During the month,the company incurred direct materials cost of $69,000 and direct labor cost of $31,000.The actual manufacturing overhead cost incurred was $54,000.The manufacturing overhead cost applied to jobs was $58,000.The cost of goods manufactured for September was:

A)$158,000
B)$154,000
C)$151,000
D)$155,000

Question 55

Sosaya Inc. ,which uses job-order costing,has provided the following data for February: The unadjusted cost of goods sold (in other words,cost of goods sold before adjusting for any underapplied or overapplied overhead) for February is closest to:

A)$230,000
B)$247,000
C)$242,000
D)$234,000

Question 56

Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 40,000 hours,respectively,for the year.In July,Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor.The labor rate is $6 per hour.By the end of the year,Snappy had worked a total of 45,000 direct labor-hours and had incurred $110,250 actual manufacturing overhead cost.
If Job #334 contained 200 units,the unit product cost on the completed job cost sheet would be:

A)$37.00
B)$42.00
C)$41.90
D)$39.50

Question 57

Bega Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company's cost of goods manufactured for October was $203,000 and its beginning and ending inventories were: During the month,the manufacturing overhead cost incurred was $63,000 and the manufacturing overhead cost applied was $61,000. The cost of goods sold that appears on the income statement for October and that has been adjusted for any underapplied or overapplied overhead is closest to:

A)$203,000
B)$189,000
C)$219,000
D)$185,000

Question 58

Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 40,000 hours,respectively,for the year.In July,Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor.The labor rate is $6 per hour.By the end of the year,Snappy had worked a total of 45,000 direct labor-hours and had incurred $110,250 actual manufacturing overhead cost.
Snappy's manufacturing overhead for the year was:

A)$10,250 underapplied
B)$12,500 overapplied
C)$12,500 underapplied
D)$2,250 overapplied

Question 59

Baken Corporation applies manufacturing overhead on the basis of direct labor-hours.At the beginning of the most recent year,the company based its predetermined overhead rate on total estimated overhead of $172,140 and 3,800 estimated direct labor-hours.Actual manufacturing overhead for the year amounted to $171,000 and actual direct labor-hours were 3,880.
The predetermined overhead rate for the year was closest to:

A)$45.00
B)$44.07
C)$46.25
D)$45.30

Question 60

Johengen Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for January: The cost of goods sold that appears on the income statement for January and that has been adjusted for any underapplied or overapplied overhead is closest to:

A)$210,000
B)$230,000
C)$222,000
D)$238,000

Question 61

Maverick Company had the following transactions last year:
1.Raw materials issued from storeroom,$140,000 (90% direct materials,10% indirect materials).
2.Factory utility costs incurred,$35,000.
3.Employee salaries and wages incurred,$200,000 (80% direct labor,10% indirect labor and 10% selling,general,and administrative).
4.Depreciation on factory equipment,$30,000.
5.Depreciation on autos used by the sales staff,$15,000.
6.Overhead was applied to production at a rate of 50% of direct labor cost.
7.Goods costing $310,000 according to their job cost sheets were completed.
The cost of goods manufactured was:

A)$366,000
B)$420,000
C)$385,000
D)$310,000

Question 62

Cahin 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 $21,060.Actual manufacturing overhead for the year amounted to $13,000 and actual machine-hours were 1,380.The company's predetermined overhead rate for the year was $16.20 per machine-hour.
The applied manufacturing overhead for the year was closest to:

A)$23,732
B)$21,060
C)$22,356
D)$13,800

Question 63

Jakubiak Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In January the company completed job J26E that consisted of 18,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job J26E shows the following costs: During the month,the actual manufacturing overhead cost incurred was $252,360 and 17,000 completed units from job J26E were sold.No other products were sold during the month.
The cost of goods sold that would appear on the income statement for January,after adjustment for any underapplied or overapplied overhead,is closest to:

A)$1,020,760
B)$1,005,640
C)$1,072,870
D)$1,080,350

Question 64

Smalling Inc.has provided the following data for the month of November:
The cost of goods manufactured for November is:

A)$226,000
B)$218,000
C)$225,000
D)$217,000

Question 65

Cahin 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 $21,060.Actual manufacturing overhead for the year amounted to $13,000 and actual machine-hours were 1,380.The company's predetermined overhead rate for the year was $16.20 per machine-hour.
The predetermined overhead rate was based on how many estimated machine-hours?

A)1,380
B)802
C)225
D)1,300

Question 66

Rappaport Corporation reported the following data for the month of February:
The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for February is:

A)$240,000
B)$238,000
C)$239,000
D)$237,000

Question 67

Jefferson Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In October the company completed job U22T that consisted of 14,000 units of one of the company's standard products.No other jobs were in process during the month.The total manufacturing cost for job U22T according to its job cost sheet was $638,400.During the month,the actual manufacturing overhead cost incurred was $150,780 and the manufacturing overhead applied was $163,800.And during the month,4,000 completed units from job U22T were sold.No other products were sold during the month.
The unadjusted cost of goods sold (in other words,the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for October is closest to:

A)$618,800
B)$178,680
C)$638,400
D)$182,400

Question 68

Baken Corporation applies manufacturing overhead on the basis of direct labor-hours.At the beginning of the most recent year,the company based its predetermined overhead rate on total estimated overhead of $172,140 and 3,800 estimated direct labor-hours.Actual manufacturing overhead for the year amounted to $171,000 and actual direct labor-hours were 3,880.
The overhead for the year was:

A)$4,764 overapplied
B)$3,624 underapplied
C)$4,764 underapplied
D)$3,624 overapplied

Question 69

Rappaport Corporation reported the following data for the month of February:
The cost of goods manufactured for February is:

A)$220,000
B)$238,000
C)$241,000
D)$223,000

Question 70

Lewis Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In October the company completed job P70C that consisted of 25,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job P70C shows the following costs: During the month,the actual manufacturing overhead cost incurred was $334,500 and 13,000 completed units from job P70C were sold.No other products were sold during the month.
The cost of goods sold that would appear on the income statement for October,after adjustment for any underapplied or overapplied overhead,is closest to:

A)$1,364,480
B)$704,500
C)$725,500
D)$1,375,010

Question 71

Jefferson Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In October the company completed job U22T that consisted of 14,000 units of one of the company's standard products.No other jobs were in process during the month.The total manufacturing cost for job U22T according to its job cost sheet was $638,400.During the month,the actual manufacturing overhead cost incurred was $150,780 and the manufacturing overhead applied was $163,800.And during the month,4,000 completed units from job U22T were sold.No other products were sold during the month.
The cost of goods sold that would appear on the income statement for October,after adjustment for any underapplied or overapplied overhead,is closest to:

A)$195,420
B)$169,380
C)$638,400
D)$625,400

Question 72

Jakubiak Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In January the company completed job J26E that consisted of 18,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job J26E shows the following costs: During the month,the actual manufacturing overhead cost incurred was $252,360 and 17,000 completed units from job J26E were sold.No other products were sold during the month.
The unadjusted cost of goods sold (in other words,the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for January is closest to:

A)$1,020,340
B)$999,000
C)$1,013,200
D)$1,072,800

Question 73

Dasilva Company had only one job in process on May 1.The job had been charged with $1,400 of direct materials,$6,192 of direct labor,and $5,712 of manufacturing overhead cost.The company assigns overhead cost to jobs using the predetermined overhead rate of $11.90 per direct labor-hour.During May,the activity was recorded: Work in process inventory on May 30 contains $4,773 of direct labor cost.Raw materials consist solely of items that are classified as direct materials.
The balance in the raw materials inventory account on May 30 was:

A)$4,700
B)$43,300
C)$3,800
D)$39,500

Question 74

Lewis Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In October the company completed job P70C that consisted of 25,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job P70C shows the following costs: During the month,the actual manufacturing overhead cost incurred was $334,500 and 13,000 completed units from job P70C were sold.No other products were sold during the month.
The unadjusted cost of goods sold (in other words,the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for October is closest to:

A)$715,000
B)$1,375,000
C)$1,270,000
D)$709,540

Question 75

Baken Corporation applies manufacturing overhead on the basis of direct labor-hours.At the beginning of the most recent year,the company based its predetermined overhead rate on total estimated overhead of $172,140 and 3,800 estimated direct labor-hours.Actual manufacturing overhead for the year amounted to $171,000 and actual direct labor-hours were 3,880.
The applied manufacturing overhead for the year was closest to:

A)$175,764
B)$174,600
C)$179,450
D)$170,992

Question 76

Lewis Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In October the company completed job P70C that consisted of 25,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job P70C shows the following costs: During the month,the actual manufacturing overhead cost incurred was $334,500 and 13,000 completed units from job P70C were sold.No other products were sold during the month.
The unit product cost for job P70C is closest to:

A)$41.20
B)$104.96
C)$55.00
D)$105.77

Question 77

Smalling Inc.has provided the following data for the month of November:
The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for November is:

A)$237,000
B)$225,000
C)$214,000
D)$213,000

Question 78

Dasilva Company had only one job in process on May 1.The job had been charged with $1,400 of direct materials,$6,192 of direct labor,and $5,712 of manufacturing overhead cost.The company assigns overhead cost to jobs using the predetermined overhead rate of $11.90 per direct labor-hour.During May,the activity was recorded: Work in process inventory on May 30 contains $4,773 of direct labor cost.Raw materials consist solely of items that are classified as direct materials.
The cost of goods manufactured for May was:

A)$98,920
B)$92,688
C)$120,800
D)$97,310

Question 79

Maverick Company had the following transactions last year:
1.Raw materials issued from storeroom,$140,000 (90% direct materials,10% indirect materials).
2.Factory utility costs incurred,$35,000.
3.Employee salaries and wages incurred,$200,000 (80% direct labor,10% indirect labor and 10% selling,general,and administrative).
4.Depreciation on factory equipment,$30,000.
5.Depreciation on autos used by the sales staff,$15,000.
6.Overhead was applied to production at a rate of 50% of direct labor cost.
7.Goods costing $310,000 according to their job cost sheets were completed.
The total cost charged to jobs during the year was:

A)$366,000
B)$340,000
C)$420,000
D)$286,000

Question 80

Cahin 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 $21,060.Actual manufacturing overhead for the year amounted to $13,000 and actual machine-hours were 1,380.The company's predetermined overhead rate for the year was $16.20 per machine-hour.
The overhead for the year was:

A)$1,296 overapplied
B)$9,356 overapplied
C)$9,356 underapplied
D)$1,296 underapplied