Deck 2: Job-Order Costing

Question 1

When the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the estimated amount of direct labor-hours for the job.

Answer 1

False

Question 2

In computing its predetermined overhead rate, Brady Company included its factory insurance cost twice. This error will result in:

A)the ending balance of Finished Goods to be understated.
B)the credits to the Manufacturing Overhead account to be understated.
C)the Cost of Goods Manufactured to be overstated.
D)the Net Operating Income to be overstated.

Answer 2

the Cost of Goods Manufactured to be overstated.

Question 3

The following entry would be used to record depreciation on manufacturing equipment:

Answer 3

False

Question 4

The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the actual direct labor cost of the job, and the manufacturing overhead cost applied to the job.

Question 5

Departmental overhead rates are generally preferred to plant-wide overhead rates when:

A)the activities of the various departments in the plant are not homogeneous.
B)the activities of the various departments in the plant are homogeneous.
C)most of the overhead costs are fixed.
D)all departments in the plant are heavily automated.

Question 6

Which of the following entries would correctly record the application of overhead cost?

A)
B)
C)
D)

Question 7

Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company misclassified a portion of direct labor cost as indirect labor. The effect of this misclassification will be to:

A)understate the predetermined overhead rate.
B)overstate the predetermined overhead rate.
C)have no effect on the predetermined overhead rate.
D)cannot be determined from the information given.

Question 8

If direct labor-hours is used as the allocation base in a job-order costing system, but overhead costs are not caused by direct-labor hours, then jobs with high direct labor requirements will tend to be undercosted relative to jobs with low direct labor requirements.

Question 9

When completed goods are sold, the transaction is recorded as a debit to Cost of Goods Sold and a credit to Finished Goods.

Question 10

When a job is completed, the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a debit to Work in Process.

Question 11

Manufacturing overhead is overapplied if actual manufacturing overhead costs for a period are greater than the amount of manufacturing overhead cost that was charged to Work in Process.

Question 12

The use of a predetermined overhead rate in a job-order cost system makes it possible to compute the total cost of a job before production is begun.

Question 13

Indirect materials are charged to specific jobs.

Question 14

In a job-order cost system, direct labor is assigned to a job using information from the employee time ticket.

Question 15

The sum of all amounts transferred from the Work in Process account to the Finished Goods account represents the Cost of Goods Sold for the period.

Question 16

What journal entry is made in a job-order costing system when $8,000 of materials are requisitioned for general factory use instead of for use in a particular job?

A)
B)
C)
D)

Question 17

If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be underapplied.

Question 18

The cost categories that appear on a job cost sheet include selling expense, manufacturing expense, and administrative expense.

Question 19

Job cost sheets are used to record the costs of preparing routine accounting reports.

Question 20

The formula for computing the predetermined overhead rate is:
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base

Question 21

Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $423,870. At the end of the year, actual direct labor-hours for the year were 19,400 hours, manufacturing overhead for the year was underapplied by $5,650, and the actual manufacturing overhead was $418,870. The predetermined overhead rate for the year must have been closest to:

A)$21.59
B)$20.76
C)$21.30
D)$21.85

Question 22

Overapplied manufacturing overhead means that:

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 23

Clear Colors Corporation uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs. At the beginning of the year the Corporation estimated its total manufacturing overhead cost at $350,000 and its direct labor costs at $200,000. The actual overhead cost incurred during the year was $362,000 and the actual direct labor costs incurred on jobs during the year was $208,000. The manufacturing overhead for the year would be:

A)$12,000 underapplied.
B)$12,000 overapplied.
C)$2,000 underapplied.
D)$2,000 overapplieD.Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $350,000 ÷ $200,000 = 1.75

Question 24

In a job-order costing system, the use of indirect materials that have been previously purchased is recorded as a credit to:

A)Work in Process inventory.
B)Manufacturing Overhead.
C)Raw Materials inventory.
D)Finished Goods inventory.

Question 25

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:

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

Question 26

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

A)overapplied by $15,000
B)underapplied by $15,000
C)overapplied by $3,000
D)underapplied by $3,000

Question 27

Which of the following entries would record correctly the monthly salaries earned by the top management of a manufacturing company?

A)
B)
C)
D)

Question 28

Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,900 hours and the total estimated manufacturing overhead was $341,890. At the end of the year, actual direct labor-hours for the year were 16,700 hours and the actual manufacturing overhead for the year was $336,890. Overhead at the end of the year was:

A)$22,920 underapplied
B)$17,920 overapplied
C)$17,920 underapplied
D)$22,920 overapplied

Question 29

The following T-accounts have been constructed from last year's records at C&C Manufacturing: C&C Manufacturing uses job-order costing with a predetermined overhead rate and applies manufacturing overhead to jobs based on direct labor costs. What is the predetermined overhead rate?

A)125%
B)120%
C)100%
D)105%

Question 30

A proper journal entry to record issuing raw materials to be used on a job would be:

A)
B)
C)
D)

Question 31

Buker Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: The predetermined overhead rate for the recently completed year was closest to:

A)$22.04
B)$29.59
C)$7.67
D)$29.71

Question 32

CR Corporation has the following estimated costs for the next year: CR Corporation estimates that 20,000 labor-hours will be worked during the year. If overhead is applied on the basis of direct labor-hours, the overhead rate per hour will be:

A)$2.25
B)$3.25
C)$3.45
D)$4.70

Question 33

Brusveen Corporation applies manufacturing overhead to jobs on the basis of direct labor-hours. The following information relates to Brusveen for last year: What was Brusveen's underapplied or overapplied overhead for last year?

A)$4,000 underapplied
B)$8,880 underapplied
C)$8,880 overapplied
D)$9,000 underapplied

Question 34

Hibshman Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 10,000 machine-hours. The estimated variable manufacturing overhead was $6.82 per machine-hour and the estimated total fixed manufacturing overhead was $230,200. The predetermined overhead rate for the recently completed year was closest to:

A)$29.84 per machine-hour
B)$23.15 per machine-hour
C)$23.02 per machine-hour
D)$6.82 per machine-hour

Question 35

Paulson Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation 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 36

Aksamit Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:

A)$23.97
B)$31.00
C)$7.03
D)$31.35

Question 37

On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents:

A)the amount of cost charged to Work in Process during the period.
B)the amount of cost transferred from Finished Goods to Cost of Goods Sold during the period.
C)the amount of cost placed into production during the period.
D)the amount of cost of goods completed during the current year whether they were started before or during the current year.

Question 38

Sirmons Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 70,000 labor-hours. The estimated variable manufacturing overhead was $9.93 per labor-hour and the estimated total fixed manufacturing overhead was $1,649,200. The actual labor-hours for the year turned out to be 74,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to:

A)$32.22
B)$9.93
C)$33.49
D)$23.56

Question 39

Jameson Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Jameson estimates that 24,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:

A)$2.00
B)$2.79
C)$3.00
D)$4.00

Question 40

Bradbeer Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,500 hours. At the end of the year, actual direct labor-hours for the year were 16,000 hours, the actual manufacturing overhead for the year was $233,000, and manufacturing overhead for the year was underapplied by $15,400. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

A)$249,375
B)$217,600
C)$228,000
D)$238,000

Question 41

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:

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 42

During February at Iniquez Corporation, $79,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record the requisition from the storeroom would include a:

A)debit to Work in Process of $79,000
B)debit to Work in Process of $75,000
C)credit to Manufacturing Overhead of $4,000
D)debit to Raw Materials of $79,000

Question 43

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?

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 44

Parsons Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, Parsons Corporation incurred $250,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied $12,000 for the year. If the predetermined overhead rate was $8.00 per direct labor-hour, how many hours did the Corporation work during the year?

A)31,250 hours
B)30,250 hours
C)32,750 hours
D)29,750 hours

Question 45

Galbraith Corporation applies overhead cost to jobs on the basis of 70% of direct labor cost. If Job 201 shows $28,000 of manufacturing overhead applied, the direct labor cost on the job was:

A)$40,000
B)$19,600
C)$28,000
D)$36,400

Question 46

Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs during September. During the same period, the Manufacturing Overhead applied to Work in Process was $89,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

A)debit to Work in Process of $89,000
B)credit to Manufacturing Overhead of $87,000
C)debit to Manufacturing Overhead of $87,000
D)credit to Work in Process of $89,000

Question 47

On February 1, Manwill Corporation had $24,000 of raw materials on hand. During the month, the Corporation purchased an additional $60,000 of raw materials. During February, $54,000 of raw materials were requisitioned from the storeroom for use in production. The debits entered in the Raw Materials account during the month of February total:

A)$84,000
B)$54,000
C)$60,000
D)$24,000

Question 48

During May at Shatswell Corporation, $57,000 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 $7,000. The journal entry to record this requisition would include a debit to Manufacturing Overhead of:

A)$57,000
B)$7,000
C)$0
D)$50,000

Question 49

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?

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 50

The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,260. A total of 37 direct labor-hours and 141 machine-hours were worked on the job. The direct labor wage rate is $13 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost for the job on its job cost sheet would be:

A)$3,259
B)$2,741
C)$4,715
D)$2,287

Question 51

Traves Corporation incurred $69,000 of actual Manufacturing Overhead costs during October. During the same period, the Manufacturing Overhead applied to Work in Process was $68,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

A)debit to Manufacturing Overhead of $68,000
B)credit to Manufacturing Overhead of $68,000
C)debit to Work in Process of $69,000
D)credit to Work in Process of $69,000

Question 52

Donham Corporation had $25,000 of raw materials on hand on May 1. During the month, the Corporation purchased an additional $65,000 of raw materials. During May, $66,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The debits to the Work in Process account as a consequence of the raw materials transactions in May total:

A)$0
B)$62,000
C)$65,000
D)$66,000

Question 53

Which of the following entries or sets of entries would record sales for the month of July of $200,000 for goods costing $119,000 for?

A)
B)
C)
D)

Question 54

In July, Essinger Inc. incurred $72,000 of direct labor costs and $3,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

A)debit to Manufacturing Overhead of $3,000
B)credit to Manufacturing Overhead of $3,000
C)credit to Work in Process of $75,000
D)debit to Work in Process of $75,000

Question 55

During October, Beidleman Inc. transferred $52,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $55,000. The journal entries to record these transactions would include a:

A)credit to Cost of Goods Sold of $55,000
B)credit to Work in Process of $52,000
C)debit to Finished Goods of $55,000
D)credit to Finished Goods of $52,000

Question 56

Soledad Corporation had $36,000 of raw materials on hand on December 1. During the month, the Corporation purchased an additional $71,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

A)credit to Raw Materials of $71,000
B)debit to Raw Materials of $71,000
C)credit to Raw Materials of $107,000
D)debit to Raw Materials of $107,000

Question 57

Job 593 was recently completed. The following data have been recorded on its job cost sheet: The Corporation 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 593 would be:

A)$6,705
B)$3,219
C)$5,249
D)$4,255

Question 58

Collins Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information applies to the Corporation for the current year: The manufacturing overhead cost for the current year will be:

A)$17,000 overapplied
B)$17,000 underapplied
C)$55,000 overapplied
D)$55,000 underapplied

Question 59

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:

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 60

At the beginning of December, Sneeden Corporation had $32,000 of raw materials on hand. During the month, the Corporation purchased an additional $71,000 of raw materials. During December, $75,000 of raw materials were requisitioned from the storeroom for use in production. The credits entered in the Raw Materials account during the month of December total:

A)$32,000
B)$75,000
C)$71,000
D)$103,000

Question 61

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:

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

Question 62

Baker 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 $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980. The predetermined overhead rate for the year was closest to:

A)$34.95
B)$34.83
C)$34.98
D)$35.10

Question 63

The following accounts are from last year's books of Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?

A)$93,000
B)$69,000
C)$87,000
D)$82,000

Question 64

The actual manufacturing overhead incurred at Fraze Corporation during November was $79,000, while the manufacturing overhead applied to Work in Process was $65,000. The Corporation's Cost of Goods Sold was $385,000 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?

A)Manufacturing overhead for the month was underapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $399,000
B)Manufacturing overhead for the month was overapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $371,000
C)Manufacturing overhead for the month was overapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $399,000
D)Manufacturing overhead for the month was underapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $371,000

Question 65

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 overhead for the year was:

A)$1,010 underapplied
B)$590 overapplied
C)$590 underapplied
D)$1,010 overapplied

Question 66

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 predetermined overhead rate is closest to:

A)$36.60
B)$36.41
C)$36.24
D)$36.05

Question 67

Longstaff Inc. has provided the following data for the month of March. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was overapplied by $5,000. The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for March would include the following:

A)debit to Work in Process of $13,650
B)debit to Work in Process of $500
C)credit to Work in Process of $13,650
D)credit to Work in Process of $500

Question 68

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overapplied or underapplied for the year?

A)$12,000 overapplied
B)$12,000 underapplied
C)$3,000 overapplied
D)$3,000 underapplied

Question 69

Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $39,000 and at the end of the month was $47,000. The cost of goods manufactured for the month was $188,000. The actual manufacturing overhead cost incurred was $71,000 and the manufacturing overhead cost applied to Work in Process was $67,000. The adjusted cost of goods sold that would appear on the income statement for July is:

A)$196,000
B)$184,000
C)$180,000
D)$188,000

Question 70

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?

A)$255,000
B)$251,000
C)$223,000
D)$226,000

Question 71

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?

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

Question 72

Baker 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 $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980. The overhead for the year was:

A)$702 underapplied
B)$898 underapplied
C)$702 overapplied
D)$898 overapplied

Question 73

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?

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 74

Kaleohano 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 $62,000 and the total of the credits to the account was $73,000. Which of the following statements is true?

A)Manufacturing overhead for the month was underapplied by $11,000.
B)Manufacturing overhead applied to Work in Process for the month was $62,000.
C)Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $73,000.
D)Actual manufacturing overhead for the month was $62,000.

Question 75

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 applied manufacturing overhead for the year is closest to:

A)$136,269
B)$138,348
C)$136,987
D)$137,630

Question 76

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:

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

Question 77

Arvay Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of October. 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 $62,000 and the total of the credits to the account was $52,000. Which of the following statements is true?

A)Actual manufacturing overhead incurred during the month was $52,000.
B)Manufacturing overhead applied to Work in Process for the month was $62,000.
C)Manufacturing overhead for the month was underapplied by $10,000.
D)Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $62,000.

Question 78

Compute the amount of raw materials used during August if $25,000 of raw materials were purchased during the month and the inventories were as follows:

A)$16,000
B)$19,000
C)$23,000
D)$27,000

Question 79

Stelmack Corporation, a manufacturing Corporation, has provided data concerning its operations for September. The beginning balance in the raw materials account was $20,000 and the ending balance was $27,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $53,000, of which $3,000 consisted of raw materials classified as indirect materials. The direct materials cost for September was:

A)$56,000
B)$53,000
C)$70,000
D)$63,000

Question 80

Baker 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 $210,600 and 6,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $209,000 and actual direct labor-hours were 5,980. The applied manufacturing overhead for the year was closest to:

A)$208,283
B)$209,001
C)$209,898
D)$209,180