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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:
86. 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 balance in the Work in Process inventory account on May 1 was:
87. 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:
88. 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 direct labor cost during May was:
89. 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:
90. Killian Corporation began operations on January 1. The predetermined overhead rate was
set at $6.00 per direct labor-hour. Debits to Work in Process for the year totaled $550,000.
Credits to Work in Process totaled $480,000. Analysis of the Corporation's records indicate that
direct labor cost totaled $250,000 for the year, which represents 20,000 direct labor-hours.
The direct materials used in production during the year totaled:
91. Killian Corporation began operations on January 1. The predetermined overhead rate was
set at $6.00 per direct labor-hour. Debits to Work in Process for the year totaled $550,000.
Credits to Work in Process totaled $480,000. Analysis of the Corporation's records indicate that
direct labor cost totaled $250,000 for the year, which represents 20,000 direct labor-hours.
If the actual manufacturing overhead cost for the year totaled $145,000, then overhead was:
92. Killian Corporation began operations on January 1. The predetermined overhead rate was
set at $6.00 per direct labor-hour. Debits to Work in Process for the year totaled $550,000.
Credits to Work in Process totaled $480,000. Analysis of the Corporation's records indicate that
direct labor cost totaled $250,000 for the year, which represents 20,000 direct labor-hours.
The Corporation's ending work in process inventory consisted of one job, Job 42. The job had
been charged with $28,000 of direct labor cost, which consisted of 2,000 actual labor-hours. The
direct materials cost in Job 42 totaled:
93. On March 1, Metevier Corporation had $37,000 of raw materials on hand. During the
month, the company purchased an additional $62,000 of raw materials. During March, $69,000 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 purchase of raw materials would include a:
94. On March 1, Metevier Corporation had $37,000 of raw materials on hand. During the
month, the company purchased an additional $62,000 of raw materials. During March, $69,000 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:
95. Chelm Music Corporation manufactures violins, violas, cellos, and fiddles and uses a job-
order costing system.
What account should Chelm debit when the workers who carve the wood for the instruments
have earned their pay?
96. Chelm Music Corporation manufactures violins, violas, cellos, and fiddles and uses a job-
order costing system.
What account should Chelm debit when the production manager has earned her salary?
97. Chelm Music Corporation manufactures violins, violas, cellos, and fiddles and uses a job-
order costing system.
What account should Chelm debit when the president of the company has earned her salary?
98. Chelm Music Corporation manufactures violins, violas, cellos, and fiddles and uses a job-
order costing system.
What is one of the accounts that Chelm should credit when goods are sold?
99. During February, Irving Corporation incurred $65,000 of actual Manufacturing Overhead
costs. During the same period, the Manufacturing Overhead applied to Work in Process was
$60,000.
The journal entry to record the incurrence of the actual Manufacturing Overhead costs would
include a:
100. During February, Irving Corporation incurred $65,000 of actual Manufacturing Overhead
costs. During the same period, the Manufacturing Overhead applied to Work in Process was
$60,000.
The journal entry to record the application of Manufacturing Overhead to Work in Process would
include a:
101. On August 1, Shead Corporation had $35,000 of raw materials on hand. During the month,
the company purchased an additional $56,000 of raw materials. During August, $69,000 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. Prepare journal
entries to record these events. Use those journal entries to answer the following questions:
The debits entered in the Raw Materials account during the month of August total:
102. On August 1, Shead Corporation had $35,000 of raw materials on hand. During the month,
the company purchased an additional $56,000 of raw materials. During August, $69,000 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. Prepare journal
entries to record these events. Use those journal entries to answer the following questions:
The credits to the Raw Materials account for the month of August total:
103. On August 1, Shead Corporation had $35,000 of raw materials on hand. During the month,
the company purchased an additional $56,000 of raw materials. During August, $69,000 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. Prepare journal
entries to record these events. Use those journal entries to answer the following questions:
The debits to the Work in Process account as a consequence of the raw materials transactions in
August total:
