Question 1

Lenci Inc. has provided the following data for the month of May. 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 $3,000.
The company 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 overhead applied during the month in those accounts.
 
-The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for May would include the following:

Accepted Answer

A)  debit to Cost of Goods Sold of $340,580
B)  credit to Cost of Goods Sold of $2,580
C)  credit to Cost of Goods Sold of $340,580
D)  debit to Cost of Goods Sold of $2,580

Question 2

Jurper Corporation used $150,000 of direct materials during April.At the end of April,Jurper's direct materials inventory was $25,000 more than it was at the beginning of the month.Direct materials purchases during the April amounted to:

Accepted Answer

A)  $0
B)  $125,000
C)  $150,000
D)  $175,000

Question 3

Daguio Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the total estimated manufacturing overhead was $224,580.At the end of the year,actual direct labor-hours for the year were 18,200 hours,manufacturing overhead for the year was underapplied by $12,100,and the actual manufacturing overhead was $219,580.The predetermined overhead rate for the year must have been closest to:

Accepted Answer

A)  $11.40 per machine-hour
B)  $12.34 per machine-hour
C)  $12.06 per machine-hour
D)  $10.53 per machine-hour

Question 4

Overapplied manufacturing overhead occurs when:

Accepted Answer

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 5

During June,Catlin Corporation purchased $76,000 of raw materials on credit to add to its raw materials inventory.A total of $81,000 of raw materials was requisitioned from the storeroom for use in production.These requisitioned raw materials included $5,000 of indirect materials.
Required:
Prepare journal entries to record the purchase of materials and their use in production.

Accepted Answer

The answer of During June,Catlin Corporation purchased $76,000 of raw...

Question 6

The following partially completed T-accounts summarize transactions for Fabatz Company during the year:  
-The manufacturing overhead was:

Accepted Answer

A)  $2,200 underapplied
B)  $2,200 overapplied
C)  $400 overapplied
D)  $400 underapplied

Question 7

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?

Accepted Answer

A)  $252,000
B)  $227,000
C)  $230,000
D)  $255,000

Question 8

Daane Company had only one job in process on May 1. The job had been charged with $1,000 of direct materials, $3,302 of direct labor, and $5,382 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $20.70 per direct labor-hour.
During May, the following activity was recorded:

Work in process inventory on May 30 contains $2,921 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.
-The cost of goods manufactured for May was:

Accepted Answer

A)  $78,500
B)  $78,100
C)  $77,150
D)  $74,822

Question 9

A debit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead is overapplied.

Accepted Answer

A) True 
 B)False

Question 10

During December at Ingrim Corporation,$74,000 of raw materials were requisitioned from the storeroom for use in production.These raw materials included both direct and indirect materials.The indirect materials totaled $6,000.The journal entry to record the requisition from the storeroom would include a:

Accepted Answer

A)  debit to Raw Materials of $74,000
B)  debit to Work in Process of $68,000
C)  credit to Manufacturing Overhead of $6,000
D)  debit to Work in Process of $74,000

Question 11

On April 1, Stelter Corporation had $34,000 of raw materials on hand. During the month, the company purchased an additional $60,000 of raw materials. During April, $70,000 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. Prepare journal entries to record these events. Use these journal entries to answer the following questions:
-The debits to the Raw Materials account for the month of April total:

Accepted Answer

A)  $94,000
B)  $70,000
C)  $60,000
D)  $34,000

Question 12

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

Accepted Answer

Estimated total manufacturing overhead =...

Question 13

The following partially completed T-accounts summarize transactions for Fabatz Company during the year:  
-The direct materials cost was:

Accepted Answer

A)  $3,300
B)  $8,700
C)  $6,300
D)  $7,300

Question 14

The debit to the Manufacturing Overhead account in this entry represents indirect labor costs.
-The cost of direct materials used in production is:

Accepted Answer

A)  $12,000
B)  $13,000
C)  $16,000
D)  $20,000

Exam 2: Job-Order Costing

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

Correct Answer
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Estimated total manufacturing overhead =...
View Answer

Overapplied manufacturing overhead occurs when:

Correct Answer
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Jurper Corporation used $150,000 of direct materials during April.At the end of April,Jurper's direct materials inventory was $25,000 more than it was at the beginning of the month.Direct materials purchases during the April amounted to:

Correct Answer
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Correct Answer
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The following partially completed T-accounts summarize transactions for Fabatz Company during the year: -The manufacturing overhead was:

Correct Answer
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A debit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead is overapplied.

Correct Answer
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Correct Answer
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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?

Correct Answer
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Correct Answer
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The debit to the Manufacturing Overhead account in this entry represents indirect labor costs. -The cost of direct materials used in production is:

Correct Answer
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The following partially completed T-accounts summarize transactions for Fabatz Company during the year: -The direct materials cost was:

Correct Answer
verified

Exam 2: Job-Order Costing

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedEstimated total manufacturing overhead =...View AnswerShow Answer

Overapplied manufacturing overhead occurs when:

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Jurper Corporation used $150,000 of direct materials during April.At the end of April,Jurper's direct materials inventory was $25,000 more than it was at the beginning of the month.Direct materials purchases during the April amounted to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The following partially completed T-accounts summarize transactions for Fabatz Company during the year: -The manufacturing overhead was:

Correct AnswerverifiedShow Answer

A debit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead is overapplied.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The debit to the Manufacturing Overhead account in this entry represents indirect labor costs. -The cost of direct materials used in production is:

Correct AnswerverifiedShow Answer

The following partially completed T-accounts summarize transactions for Fabatz Company during the year: -The direct materials cost was:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Estimated total manufacturing overhead =...
View Answer

Correct Answer
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