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

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Question 21

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Maggie Manufacturing Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost.Any underapplied or overapplied overhead is closed to Cost of Goods Sold at the end of the month.During August,the following transactions were recorded by the company: Required: Determine the following: a.The August 1 balance of Raw Materials. b.The amount of manufacturing overhead applied to jobs in August. c.The Cost of Goods Manufactured for August. d.The overapplied or underapplied manufacturing overhead for the month.Label this amount appropriately.

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a.Raw materials used in production = Beg...

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Question 22

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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

E) C) and D)
F) A) and C)

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Question 23

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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:

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:

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:

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.

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:

The direct labor rate for Brent Corporation is $9.00 per hour,and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour.During May,the company purchased $60,000 in raw materials (all direct materials) and worked 3,200 direct labor-hours.The Raw Materials inventory (all direct materials) decreased by $3,000 between the beginning and end of May.The Work in Process inventory on May 1 consisted of one job which had been charged with $4,000 in direct materials and on which 300 hours of direct labor time had been worked.There was no Work in Process inventory on May 31. The debit to Work in Process for the cost of direct materials used during May was:

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:

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

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?

Dillon Corporation applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost.Any under or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month.During May,the following transactions were recorded by the company: The Cost of Goods Manufactured for May was:

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:

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

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?

The direct labor rate for Brent Corporation is $9.00 per hour,and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour.During May,the company purchased $60,000 in raw materials (all direct materials) and worked 3,200 direct labor-hours.The Raw Materials inventory (all direct materials) decreased by $3,000 between the beginning and end of May.The Work in Process inventory on May 1 consisted of one job which had been charged with $4,000 in direct materials and on which 300 hours of direct labor time had been worked.There was no Work in Process inventory on May 31. If overhead was underapplied by $2,500 during May,the actual overhead cost for the month must have been:

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

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:

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:

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