132)
Mango Company applies overhead based on direct labor costs. For the current year, Mango
Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000.
Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000.
At year-end, the balance in the Factory Overhead account is a:
A)
$330,000 Debit balance.
B)
$340,000 Credit balance.
C)
$10,000 Debit balance.
D)
$10,000 Credit balance.
E)
$170,000 Debit balance.
133)
Mango Company applies overhead based on direct labor costs. For the current year, Mango
Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000.
Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000.
At year-end, Factory Overhead account is:
A)
Overapplied by $20,000.
B)
Neither overapplied nor underapplied.
C)
Overapplied by $170,000.
D)
Overapplied by $10,000.
E)
Underapplied by $10,000.
134)
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct
labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead
was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or
underapplied overhead at year-end, assuming an immaterial amount, would include:
A)
A credit to Factory Overhead for $600.
B)
A credit to Cost of Goods Sold for $600.
C)
A credit to Finished Goods Inventory for $600.
D)
A debit to Work in Process Inventory for $600.
E)
A debit to Cost of Goods Sold for $600.
135)
If overapplied or underapplied overhead is material, it should be disposed of by allocating it to:
A)
Work in process inventory.
B)
Finished goods inventory and work in process inventory.
C)
Work in process inventory, finished goods inventory, and cost of goods sold.
D)
Raw materials inventory, work in process inventory, and finished goods inventory.
E)
Cost of goods sold and finished goods inventory.
136)
The Marina Corp. has applied overhead to jobs during the period as follows:
Jobs finished and sold $ 46,000
Jobs started and in process 54,000
Jobs finished and unsold 100,00
0
The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account,
and this amount is not material. The entry to dispose of this remaining factory overhead balance is:
A)
Debit Work in Process Inventory $5,600; credit Factory Overhead $5,600.
B)
Debit Factory Overhead $5,600; credit Work in Process Inventory $5,600.
C)
Debit Factory Overhead $5,600; credit Cost of Goods Sold $5,600.
D)
No entry is needed.
E)
Debit Cost of Goods Sold $5,600; credit Factory Overhead $5,600.
137)
Andrew Industries purchased $165,000 of raw materials on account during the month of March.
The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete
jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. What is
the ending Raw Materials Inventory balance for March?
A) $33,000 B) $9,000 C) $24,000 D) $46,000 E) $11,000
138)
Andrew Industries purchased $165,000 of raw materials on account during the month of March.
The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete
jobs during the month were $141,000 direct materials and $13,000 indirect materials. How should
Andrews journalize the purchase of raw materials for March?
A)
Debit Raw Materials Inventory $187,000; credit Cash $187,000
B)
Debit Accounts Payable $165,000; credit Raw Materials Inventory $165,000
C)
Debit Accounts Payable $187,000; credit Raw Materials Inventory $187,000
D)
Debit Raw Materials Inventory $165,000; credit Accounts Payable $165,000
E)
Debit Work in Process Inventory $165,000; credit Raw Materials Inventory $165,000
139)
Andrew Industries purchased $165,000 of raw materials on account during the month of March.
The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete
jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. What
amount will Andrew debit to Work in Process Inventory for the month of March?
A) $154,000 B) $33,000 C) $141,000 D) $165,000 E) $13,000
140)
Andrew Industries purchased $165,000 of raw materials on account during the month of March.
The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete
jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. What
journal entry should Andrew use to account for direct materials used in March:
A)
Debit Finished Goods Inventory $22,000; credit Raw Materials Inventory $22,000.
B)
Debit Work in Process Inventory $141,000; credit Accounts Payable $141,000.
C)
Debit Work in Process Inventory $141,000; credit Raw Materials Inventory $141,000.
D)
Debit Raw Materials Inventory $153,000; credit Work in Process Inventory $153,000.
E)
Debit Raw Materials Inventory $141,000; credit Accounts Payable $141,000.
141)
Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month
of August, of which $212,000 was direct and $73,000 was indirect supervisory costs. The correct
journal entry to record the direct labor for the month is:
A)
Debit Work in Process Inventory $285,000; credit Factory Wages Payable $285,000.
B)
Debit Work in Process Inventory $212,000; credit Factory Wages Payable $212,000.
C)
Debit Payroll Expense $212,000; credit Cash $212,000.
D)
Debit Work in Process Inventory $212,000; credit Cash $285,000.
E)
Debit Factory Wages Payable $285,000; credit Work in Process Inventory $212,000.
142)
Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month
of August, of which $212,000 was direct and $73,000 was indirect supervisory costs. The correct
journal entry to record the $73,000 indirect labor for the month is:
A)
Debit Supervisor Wage Expense; credit Factory Overhead.
B)
Debit Factory Wages Payable; credit Factory Overhead.
C)
Debit Supervisor Wage Expense; credit Factory Wages Payable.
D)
Debit Factory Overhead; credit Factory Wages Payable.
E)
Debit Factory Wage Expense; credit Cash.
143)
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased
$198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000
were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor.
Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to
record the purchase of materials is:
A)
Debit Raw Materials Inventory $198,000; credit Work in Process Inventory $198,000.
B)
Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000.
C)
Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000.
D)
Debit Work in Process Inventory $198,000; credit Accounts Payable $198,000.
E)
Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000.
144)
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased
$198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000
were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor.
Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to
record the issuance of materials to production is:
A)
Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000.
B)
Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000.
C)
Debit Finished Goods Inventory $195,000; credit Raw Materials Inventory $195,000.
D)
Debit Work in Process Inventory $165,000; debit Factory Overhead $30,000; credit Raw
Materials Inventory $195,000.
E)
Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000.
145)
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased
$198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000
were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor.
Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to
record the factory payroll is:
A)
Debit Work in Process Inventory $150,000; credit Cash $150,000.
B)
Debit Work in Process Inventory $150,000; debit Factory Overhead $40,000; credit Factory
Wages Payable $190,000.
C)
Debit Work in Process Inventory $110,000; credit Factory Overhead $40,000; credit Factory
Wages Payable $150,000.
D)
Debit Work in Process Inventory $110,000; debit Factory Overhead $40,000; credit Factory
Wages Payable $150,000.
E)
Debit Work in Process Inventory $150,000; credit Factory Overhead $40,000; credit Factory
Wages Payable $110,000.
146)
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased
$198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000
were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor.
Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to
record the payment of the factory payroll is:
A)
Debit Work in Process Inventory $110,000; credit Cash $150,000.
B)
Debit Factory Overhead $40,000; credit Factory Wages Payable $40,000.
C)
Debit Work in Process Inventory $150,000; credit Factory Wages Payable $150,000.
D)
Debit Work in Process Inventory $150,000; credit Cash $150,000.
E)
Debit Factory Wages Payable $150,000; credit Cash $150,000.
147)
Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased
$198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000
were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor.
Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to
record the application of factory overhead to production is:
A)
Debit Factory Overhead $165,000; credit Work in Process Inventory $165,000.
B)
Debit Factory Payroll $150,000; credit Work in Process Inventory $150,000.
C)
Debit Work in Process Inventory $225,000; credit Factory Overhead $225,000.
D)
Debit Work in Process Inventory $165,000; credit Factory Payroll $165,000.
E)
Debit Work in Process Inventory $165,000; credit Factory Overhead $165,000.
148)
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased
$198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000
were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor.
Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing
costs added during the period are:
A) $470,000. B) $540,000. C) $440,000. D) $570,000. E) $500,000.
149)
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased
$198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000
were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor.
Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel
incurred total overhead costs of $167,800 during the month, compute the amount of under- or
overapplied overhead:
A)
$57,200 overapplied.
B)
$2,800 underapplied.
C)
$17,800 overapplied.
D)
$2,800 overapplied.
E)
$17,800 underapplied.
150)
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased
$198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000
were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor.
Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel’s
beginning and ending Work in Process Inventory are $15,500 and $27,000 respectively. Compute
the cost of product transferred to Finished Goods Inventory:
A) $413,000. B) $428,500. C) $558,500. D) $415,000. E) $440,000.
151)
Finished goods inventory is $190,000. If overhead applied to these goods is $72,000, and the
overhead rate is 120% of direct labor, how much direct materials cost was incurred in producing
the inventory?
A) $58,000. B) $31,600. C) $86,400. D) $56,000. E) $60,000.
152)
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the
beginning of the year, Adams estimated total overhead of $396,000; materials of $410,000 and
direct labor of $220,000. During the year Adams incurred $418,000 in materials costs, $413,200 in
overhead costs and $224,000 in direct labor costs. Compute the overhead application rate.
A) 96.6%. B) 184%. C) 186%. D) 55.6%. E) 180%.