2-195
106.
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 Manufacturing Overhead account as a consequence of the raw
materials transactions in August total:
2-196
107.
Dillon Corporation applies manufacturing overhead to jobs using a predetermined
overhead rate of 75% of direct labor cost. Any under or overapplied manufacturing
overhead cost is closed out to Cost of Goods Sold at the end of the month. During May,
the following transactions were recorded by the company:
$38,000
$35,000
3,150
$30,000
$24,500
$8,000
$9,000
$12,000*
Used in production
Purchases
The balance on May 1 in the Raw Materials inventory account was:
2-197
2-198
108.
Dillon Corporation applies manufacturing overhead to jobs using a predetermined
overhead rate of 75% of direct labor cost. Any under or overapplied manufacturing
overhead cost is closed out to Cost of Goods Sold at the end of the month. During May,
the following transactions were recorded by the company:
Raw materials (all direct materials):
Purchased during the month
$38,000
Used in production
$35,000
Labor:
Direct labor-hours worked during the
month
3,150
Direct labor cost incurred
$30,000
Manufacturing overhead cost incurred
(total)
$24,500
Inventories:
Raw materials (all direct), May 31
$8,000
Work in process, May 1
$9,000
Work in process, May 31
$12,000*
*Contains $4,400 in direct labor cost.
The amount of direct materials cost in the May 31 Work in Process inventory account
was:
2-199
2-200
109.
Dillon Corporation applies manufacturing overhead to jobs using a predetermined
overhead rate of 75% of direct labor cost. Any under or overapplied manufacturing
overhead cost is closed out to Cost of Goods Sold at the end of the month. During May,
the following transactions were recorded by the company:
Raw materials (all direct materials):
Purchased during the month
$38,000
Used in production
$35,000
Labor:
Direct labor-hours worked during the
month
3,150
Direct labor cost incurred
$30,000
Manufacturing overhead cost incurred
(total)
$24,500
Inventories:
Raw materials (all direct), May 31
$8,000
Work in process, May 1
$9,000
Work in process, May 31
$12,000*
*Contains $4,400 in direct labor cost.
The entry to dispose of the under or overapplied manufacturing overhead cost for the
2-201
month would include:
2-202
110.
Dillon Corporation applies manufacturing overhead to jobs using a predetermined
overhead rate of 75% of direct labor cost. Any under or overapplied manufacturing
overhead cost is closed out to Cost of Goods Sold at the end of the month. During May,
the following transactions were recorded by the company:
$38,000
$35,000
3,150
$30,000
$24,500
$8,000
$9,000
$12,000*
The Cost of Goods Manufactured for May was:
Direct materials
$35,000
Direct labor
2-203
111.
Echo Corporation uses a job-order costing system and applies overhead to jobs using a
predetermined overhead rate. During the year the company’s Finished Goods inventory
account was debited for $360,000 and credited for $338,800. The ending balance in the
Finished Goods inventory account was $36,600. At the end of the year, manufacturing
overhead was overapplied by $15,900.
The balance in the Finished Goods inventory account at the beginning of the year was:
2-204
112.
Echo Corporation uses a job-order costing system and applies overhead to jobs using a
predetermined overhead rate. During the year the company’s Finished Goods inventory
account was debited for $360,000 and credited for $338,800. The ending balance in the
Finished Goods inventory account was $36,600. At the end of the year, manufacturing
overhead was overapplied by $15,900.
If the applied manufacturing overhead was $169,300, the actual manufacturing overhead
cost for the year was:
2-205
113.
The following partially completed T-accounts summarize transactions for Farwest
Corporation during the year:
Raw Materials
Beg Bal
4,700
10,000
6,900
Work in Process
Beg Bal
4,600
26,300
7,400
8,000
6,800
Finished Goods
Beg Bal
1,900
22,900
26,300
Manufacturing Overhead
2,600
6,800
3,000
1,900
Wages & Salaries Payable
12,300
Beg Bal
1,400
11,000
2-206
Cost of Goods Sold
22,900
The Cost of Goods Manufactured was:
2-207
114.
The following partially completed T-accounts summarize transactions for Farwest
Corporation during the year:
Raw Materials
Beg Bal
4,700
10,000
6,900
Work in Process
Beg Bal
4,600
26,300
7,400
8,000
6,800
Finished Goods
Beg Bal
1,900
22,900
26,300
Manufacturing Overhead
2,600
6,800
3,000
1,900
Wages & Salaries Payable
12,300
Beg Bal
1,400
11,000
Cost of Goods Sold
22,900
The direct labor cost was:
2-209
2-210
115.
The following partially completed T-accounts summarize transactions for Farwest
Corporation during the year:
Raw Materials
Beg Bal
4,700
10,000
6,900
Work in Process
Beg Bal
4,600
26,300
7,400
8,000
6,800
Finished Goods
Beg Bal
1,900
22,900
26,300
Manufacturing Overhead
2,600
6,800
3,000
1,900
Wages & Salaries Payable
12,300
Beg Bal
1,400
11,000
Cost of Goods Sold
22,900
The direct materials cost was:
2-211
2-212
116.
The following partially completed T-accounts summarize transactions for Farwest
Corporation during the year:
Raw Materials
Beg Bal
4,700
10,000
6,900
Work in Process
Beg Bal
4,600
26,300
7,400
8,000
6,800
Finished Goods
Beg Bal
1,900
22,900
26,300
The manufacturing overhead applied was:
2-213
2-214
117.
The following partially completed T-accounts summarize transactions for Farwest
Corporation during the year:
Raw Materials
Beg Bal
4,700
10,000
6,900
Work in Process
Beg Bal
4,600
26,300
7,400
8,000
6,800
Finished Goods
Beg Bal
1,900
22,900
26,300
Manufacturing Overhead
2,600
6,800
3,000
1,900
Wages & Salaries Payable
12,300
Beg Bal
1,400
11,000
Cost of Goods Sold
22,900
The manufacturing overhead was: