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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:
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:
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:
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:
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 balance on May 1 in the Raw Materials inventory account was:
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:
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 month
would include:
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:
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 Cost of Goods Manufactured for May was:
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:
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:
2-113
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
Cost of Goods Sold
22,900
The Cost of Goods Manufactured was:
2-115
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:
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:
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:
