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43) For each of the following statements, determine if manufacturing overhead was: A) underallocated B) overallocated Put the correct letter on the line in front of each statement. _____ Cost of goods sold is increased _____ Actual manufacturing overhead is less than allocated manufacturing overhead _____ Cost of goods sold is decreased _____ Actual manufacturing overhead is.
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63) At Plastics Source, Inc., the beginning balance of the work in process inventory account in April of the most recent year was $17,000. Direct materials used during April totaled $140,000. Total manufacturing labor incurred in April was $163,500, 80% of this amount represented direct labor. The predetermined manufacturing overhead.
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11) Finished goods inventory is debited and work in process inventory is credited for: A) purchase of goods on account. B) transfer of goods to the finished goods storeroom. C) transfer goods out of the factory. D) transfer of material to work in process inventory. 12) Raw materials inventory is credited and work in process.
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31) Specialty Wood Products Company had the following labor-related transactions at their plant last month: Woodworkers' wages $100,000 Staining tank workers' wages     20,000 Maintenance personnel wages     10,000 What is the journal entry to record the incurrence of direct labor? A) Manufacturing Wages 130,000 Wages Payable 130,000 B) Wages Payable 130,000 Manufacturing Wages 130,000 C) WIP Inventory 130,000 Manufacturing Wages 130,000 D) WIP Inventory 130,000 Wages Payable 130,000 32) Which of the following.
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58) Safety First Corporation uses job costing. To follow is selected financial data from the company for the most recent year. Ending raw materials inventory $16,000 Ending work in process inventory $47,300 Ending finished goods inventory $52,000 Amount of underallocated manufacturing overhead $3,200 Cost of goods sold for year $75,100 Cost of raw materials purchased during.
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44) Portend Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for September. Cost of goods manufactured $26,000 Cost of direct materials used $13,500 Cost of direct labor ($9  per hour) $9,000 Work in process inventory, September 1     $1,000 Manufacturing overhead cost is allocated at the rate of $6.
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17) If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then: A) cost of goods sold should be decreased. B) cost of goods sold should be increased. C) finished goods inventory should be increased. D) work in process inventory should be decreased. 18) If manufacturing overhead.
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18) Carlson Computing Services expects its computer technicians will work a total of 12,000 direct labor hours during the upcoming year. Abba's estimated total indirect costs are $180,000. The indirect cost allocation rate is based on direct labor hours. A) What is the indirect cost allocation rate? B) What indirect costs will.
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48) Intak Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for November. Cost of goods manufactured $55,000 Cost of direct materials used $29,000 Cost of direct labor ($9  per hour) $13,500 Work in process inventory, November  1     $1,500 Manufacturing overhead cost is allocated at the rate of $6.
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64) Hurt Manufacturing has two departments that produce a line of tables. The Machining Department allocates manufacturing overhead using machine hours as the allocation base while the Finishing Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for May are shown below:   Machining Dept. Finishing Dept. Estimated annual manufacturing overhead costs $90,000.
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65) Hurt Manufacturing has two departments that produce a line of tables. The Machining Department allocates manufacturing overhead using machine hours as the allocation base while the Finishing Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for June are shown below:   Machining Dept. Finishing Dept. Estimated annual manufacturing overhead costs $180,000.
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64) Here is selected data for Sailor Corporation: Cost of raw material purchased $87,000 Cost of requisitioned direct materials     46,000 Cost of requisitioned indirect materials 3,000 Direct labor 89,000 Manufacturing overhead incurred     102,000 Cost of goods completed   248,900 Cost of goods sold 163,000 Beginning raw materials inventory     19,000 Beginning work in process inventory 43,000 Beginning finished goods inventory 27,000 Manufacturing overhead allocation rate (based on direct labor)       .
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62) Paulson Enterprises uses a job costing system. Record the following transactions in Paulson Enterprises's general journal for the current month: a) Purchased raw materials on account, $75,000. b) Requisitioned $44,500 of direct materials and $7,000 of indirect materials for use in production. c) Factory payroll incurred, $90,000; 80% direct labor, 20% indirect.
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51) FreeBake produces pie crusts and tart shells. The company allocates manufacturing overhead based on the direct labour hours each job uses. FreeBake reports the following cost data for the past year. BUDGET ACTUAL Direct labour hours 14,000 hours 12,800 hours Machine hours 13,500 hours 12,600 hours Depreciation on salespeople's autos $26,000 $26,000 Indirect materials 98,000 104,000 Depreciation on delivery trucks 26,000 28,000 Depreciation on plant and.
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27) Bradley Company uses a job cost system. Manufacturing overhead has been overapplied by $4,200 for the year. Actual overhead incurred was $96,000. Other balances are: Raw materials inventory at end of year $12,000 Work in process inventory at end of year $31,500 Finished goods inventory at end of year $41,500.
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60) Lawrence Corporation had actual manufacturing overhead costs of $29,500 for the past year. Direct labor cost is $17.50 per hour. Manufacturing overhead is allocated at a rate of $2.50 per direct labor hour. Manufacturing overhead was overallocated for the year by $1,500. Calculate: A) Allocated manufacturing overhead costs for year B) Actual.
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31) Starlight Company uses a job costing system. Starlight Company uses estimated direct labor hours of 180,000 and estimated manufacturing overhead costs of $360,000 in establishing its predetermined manufacturing overhead rate. Actual results for the year showed: Actual manufacturing overhead cost $353,000 Allocated manufacturing overhead cost 340,000 The number of direct labor hours.
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72) Myer's Enterprises uses a job costing system. Record the following transactions in Myer's Enterprise's general journal for the current month: a) Purchased raw materials on account, $45,000. b) Requisitioned $26,700 of direct materials and $4,200 of indirect materials for use in production. c) Factory payroll incurred, $54,000; 80% direct labor, 20% indirect.
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63) Dymo Manufacturing has two departments that produce small appliances. The Assembly Department allocates manufacturing overhead using machine hours as the allocation base while the Finishing Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for March are shown below:   Assembly Dept. Painting Dept. Estimated annual manufacturing overhead costs $60,000 $165,000 Estimated.
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69) At Inshore Inc., the beginning balance of the work in process inventory account in July of the most recent year was $32,640. Direct materials used during July totaled $268,800. Total manufacturing labor incurred in June was $313,920, 80% of this amount represented direct labor. The predetermined manufacturing overhead rate.
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46) The following data is available for Sykes Company, a small manufacturing firm, for the month of October: Actual manufacturing overhead costs incurred $58,000 Manufacturing overhead Allocated to jobs56,000 Under allocated manufacturing overhead$2,000 Assume that the amount of under allocated manufacturing overhead is not material. Sykes Company will dispose of the under allocation by: A) Increasing cost.
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68) Ninder Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following: Manufacturing overhead costs$450,000 Direct labour cost 1,250,000 Machine hours  75,000 At the end of the year, the company had actually incurred.
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1) Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate. 2) A service firm's costs are comprised of direct materials, direct labor and manufacturing overhead. 3) A labor time record is an essential component of accounting in a service firm. 4).
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61) Calculate the unknowns for the following independent situations. 1) Selected data for Liberty Company: Actual manufacturing overhead costs $30,500 Underallocated manufacturing overhead costs $2,000 Allocated manufacturing overhead is based on 60% of direct labor cost. A) Calculate the allocated manufacturing overhead cost. B) Calculate the direct labor cost. 2) Selected data for Stars Corporation: Actual.
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71) Morgan Enterprises uses a job costing system. Record the following transactions in Morgan Enterprises' general journal for the current month: a) Purchased raw materials on account, $60,000. b) Requisitioned $35,600 of direct materials and $5,600 of indirect materials for use in production. c) Factory payroll incurred, $72,000; 80% direct labor, 20% indirect.
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21) The cost of indirect materials used in the factory is recorded as a: A) credit to manufacturing overhead. B) credit to work in process inventory. C) credit to raw materials inventory. D) credit to direct materials expense. 22) The journal entry needed to record the receipt of a factory utility bill would include a: A).
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70) Sticklers Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the direct labour cost required. At the beginning of the year, the company expected to incur the following: Manufacturing overhead costs $510,000 Direct labour cost 850,000 Machine hours40,000 At the end of the year, the company had actually incurred.
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43) Hollinger Ceramics makes custom ceramic tiles. During March, the company started and finished Job #914. The company's records show the following direct materials were requisitioned for Job #914. Plain white tiles: 1,500 units at $3.00 per unit Specialty paint: 4 quarts at $5.00 per quart High gloss glaze: 3 quarts at $10.00.
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66) Stokes Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following: Manufacturing overhead costs $280,000 Direct labour cost 850,000 Machine hours  40,000 At the end of the year, the company had actually.
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59) Wisteria Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost $440,000 Actual direct labor cost $450,000 Estimated manufacturing overhead costs $350,000 Actual manufacturing overhead costs $353,000 Estimated.
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70) Jameson Enterprises uses a job costing system. Record the following transactions in Jameson Enterprises' general journal for the current month: a) Purchased raw materials on account, $112,500 b) Requisitioned $66,750 of direct materials and $10,500 of indirect materials for use in production. c) Factory payroll incurred, $135,000; 80% direct labor, 20% indirect.
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72) Marvell Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the direct labour cost required. At the beginning of the year, the company expected to incur the following: Manufacturing overhead costs $1,200,000 Direct labour cost 600,000 Machine hours 40,000 At the end of the year, the company had.
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40) Millstone Company uses job costing. Millstone Company has two departments, Sanding and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Sanding Department and direct labor hours in The Finishing Department. The following additional information is available: Estimated amounts Sanding Dept. Finishing Dept. Direct labor cost $250,000 $450,000 Direct.
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37) The following account balances at the beginning of January were selected from the general ledger of Sailor Manufacturing Company: Work in process inventory $0 Raw materials inventory $26,000 Finished goods inventory $46,000 Additional data: 1)  Actual manufacturing overhead for January amounted to $62,000. 2)  Total direct labor cost for January was $57,000. 3)  The predetermined manufacturing.
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47) Kimberly Glass Works makes custom glass tiles. During May, the company started and finished Job #915. The company's records show the following direct materials were requisitioned for Job  #915 Clear white tiles: 3,000 units at $3.00 per unit Specialty colours:8 quarts at $5.00 per quart Mirror gloss:6 quarts at $10.00 per quart Labor.
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62) Boyle Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for April are shown below:   Drilling Dept. Cutting Dept. Estimated annual manufacturing overhead costs $120,000.
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51) To follow is selected financial data from Harmon Manufacturing for the most recent year. Ending raw materials inventory $19,000 Ending work in process inventory $42,000 Ending finished goods inventory $54,100 Amount of underallocated manufacturing overhead $3,100 Cost of goods sold for year $81,000 Cost of raw materials purchased during year $45,300 Cost of direct materials requisitioned.
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7) The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead incurred during the year. 8) The amount of overallocation or underallocation is typically corrected by adjusting the Work in Process Inventory account. 9) An overallocation.
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68) At Multitask, Inc., the beginning balance of the work in process inventory account in June of the most recent year was $20,400. Direct materials used during June totaled $168,000. Total manufacturing labor incurred in June was $196,200, 80% of this amount represented direct labor. The predetermined manufacturing overhead rate.
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45) The following information was gathered for the Parzone Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. Estimated direct labor hours          64,000 Actual direct labor hours          70,000 Estimated manufacturing overhead costs $1,216,000 Actual manufacturing overhead costs $1,275,000 Compute: A) Predetermined manufacturing overhead rate B) Manufacturing overhead allocated.
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