2-175
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:
2-176
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:
2-177
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:
2-178
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:
2-179
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:
2-180
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:
2-181
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:
2-182
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:
2-183
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:
2-184
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?
2-185
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?
2-186
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?
2-187
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?
2-188
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:
2-189
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:
2-190
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:
2-191
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:
2-192
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:
2-193
104.
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 Work in Process account as a consequence of the raw materials
transactions in August total:
2-194
105.
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 Manufacturing Overhead account as a consequence of the raw materials
transactions in August total: