2-155
67.
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:
2-156
68.
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:
2-157
69.
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:
2-158
70.
Smallwood Corporation has provided the following data concerning manufacturing
overhead for January:
$64,000
$59,000
Actual manufacturing overhead incurred
Manufacturing overhead applied to Work in Process
Underapplied (overapplied) manufacturing overhead
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?
2-159
2-160
71.
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.
Work In Process
Finished Goods
Cost of Goods Sold
Total
Direct materials
$4,290
$12,480
$31,200
$47,970
Direct labor
5,260
17,160
42,900
65,320
Manufacturing overhead
applied
4,100
10,660
26,240
41,000
Total
$13,650
$40,300
$100,340
$154,290
Manufacturing Overhead
5,000
Work in Process (10% × $5,000)
Finished Goods (26% × $5,000)
1,300
Cost of Goods Sold (64% ×
$5,000)
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:
2-161
72.
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?
2-162
73.
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?
2-163
74.
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:
2-164
75.
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:
2-165
76.
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:
2-166
77.
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:
2-167
78.
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:
2-168
79.
Acton Corporation, which applies manufacturing overhead on the basis of machine-hours,
has provided the following data for its most recent year of operations.
Estimated manufacturing overhead
$139,080
Estimated machine-hours
3,800
Actual manufacturing overhead
$137,000
Actual machine-hours
3,780
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:
2-169
80.
Acton Corporation, which applies manufacturing overhead on the basis of machine-hours,
has provided the following data for its most recent year of operations.
Estimated manufacturing overhead
$139,080
Estimated machine-hours
3,800
Actual manufacturing overhead
$137,000
Actual machine-hours
3,780
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:
2-170
81.
Acton Corporation, which applies manufacturing overhead on the basis of machine-hours,
has provided the following data for its most recent year of operations.
Estimated manufacturing overhead
$139,080
Estimated machine-hours
3,800
Actual manufacturing overhead
$137,000
Actual machine-hours
3,780
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 overhead for the year was:
2-171
82.
Meyers Corporation had the following inventory balances at the beginning and end of
November:
November 1
November 30
Raw Materials
$17,000
$20,000
Finished Goods
$50,000
$44,000
Work in Process
$9,000
$11,000
During November, $39,000 in raw materials (all direct materials) were drawn from
inventory and used in production. The company’s predetermined overhead rate was $8 per
direct labor-hour, and it paid its direct labor workers $10 per hour. A total of 300 hours of
direct labor time had been expended on the jobs in the beginning Work in Process
inventory account. The ending Work in Process inventory account contained $4,700 of
direct materials cost. The Corporation incurred $28,000 of actual manufacturing overhead
cost during the month and applied $26,400 in manufacturing overhead cost.
The raw materials purchased during November totaled:
2-172
83.
Meyers Corporation had the following inventory balances at the beginning and end of
November:
November 1
November 30
Raw Materials
$17,000
$20,000
Finished Goods
$50,000
$44,000
Work in Process
$9,000
$11,000
During November, $39,000 in raw materials (all direct materials) were drawn from
inventory and used in production. The company’s predetermined overhead rate was $8 per
direct labor-hour, and it paid its direct labor workers $10 per hour. A total of 300 hours of
direct labor time had been expended on the jobs in the beginning Work in Process
inventory account. The ending Work in Process inventory account contained $4,700 of
direct materials cost. The Corporation incurred $28,000 of actual manufacturing overhead
cost during the month and applied $26,400 in manufacturing overhead cost.
The direct materials cost in the November 1 Work in Process inventory account totaled:
2-173
84.
Meyers Corporation had the following inventory balances at the beginning and end of
November:
November 1
November 30
Raw Materials
$17,000
$20,000
Finished Goods
$50,000
$44,000
Work in Process
$9,000
$11,000
During November, $39,000 in raw materials (all direct materials) were drawn from
inventory and used in production. The company’s predetermined overhead rate was $8 per
direct labor-hour, and it paid its direct labor workers $10 per hour. A total of 300 hours of
direct labor time had been expended on the jobs in the beginning Work in Process
inventory account. The ending Work in Process inventory account contained $4,700 of
direct materials cost. The Corporation incurred $28,000 of actual manufacturing overhead
cost during the month and applied $26,400 in manufacturing overhead cost.
The actual direct labor-hours worked during November totaled:
2-174
85.
Meyers Corporation had the following inventory balances at the beginning and end of
November:
November 1
November 30
Raw Materials
$17,000
$20,000
Finished Goods
$50,000
$44,000
Work in Process
$9,000
$11,000
During November, $39,000 in raw materials (all direct materials) were drawn from
inventory and used in production. The company’s predetermined overhead rate was $8 per
direct labor-hour, and it paid its direct labor workers $10 per hour. A total of 300 hours of
direct labor time had been expended on the jobs in the beginning Work in Process
inventory account. The ending Work in Process inventory account contained $4,700 of
direct materials cost. The Corporation incurred $28,000 of actual manufacturing overhead
cost during the month and applied $26,400 in manufacturing overhead cost.
The amount of direct labor cost in the November 30 Work in Process inventory was: