213) Centore Inc. has provided the following data for the month of June. 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
$
650
$
$
24,860
$
33,100
Direct labor
2,180
67,800
90,680
Manufacturing overhead
applied
930
22,940
31,000
Total
$
3,760
$
$
115,600
$
154,780
Manufacturing overhead for the month was underapplied by $3,000.
The company 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 overhead
applied during the month in those accounts.
The work in process inventory at the end of June after allocation of any underapplied or
overapplied manufacturing overhead for the month is closest to:
A) $3,850
B) $3,833
C) $3,687
D) $3,670
214) Centore Inc. has provided the following data for the month of June. 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
$
650
$
$
24,860
$
33,100
Direct labor
2,180
67,800
90,680
Manufacturing overhead
applied
930
22,940
31,000
Total
$
3,760
$
$
115,600
$
154,780
Manufacturing overhead for the month was underapplied by $3,000.
The company 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 overhead
applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for June would include the following:
A) debit to Cost of Goods Sold of $2,220
B) debit to Cost of Goods Sold of $115,600
C) credit to Cost of Goods Sold of $2,220
D) credit to Cost of Goods Sold of $115,600
Work in Process (3% × $3,000)
Finished Goods (23% × $3,000)
Cost of Goods Sold (74% × $3,000)
Manufacturing Overhead
215) Reith Inc. has provided the following data for the month of November. 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
$
1,850
$
10,440
$
58,560
$
70,850
Direct labor
3,510
22,620
126,880
153,010
Manufacturing overhead
applied
1,560
7,800
42,640
52,000
Total
$
6,920
$
40,860
$
228,080
$
275,860
Manufacturing overhead for the month was overapplied by $4,000.
The company 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 overhead
applied during the month in those accounts.
The cost of goods sold for November after allocation of any underapplied or overapplied
manufacturing overhead for the month is closest to:
A) $224,800
B) $231,360
C) $224,080
D) $232,080
216) Reith Inc. has provided the following data for the month of November. 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
$
1,850
$
10,440
$
58,560
$
70,850
Direct labor
3,510
22,620
126,880
153,010
Manufacturing overhead
applied
1,560
7,800
42,640
52,000
Total
$
6,920
$
40,860
$
228,080
$
275,860
Manufacturing overhead for the month was overapplied by $4,000.
The company 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 overhead
applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for November would include the following:
A) debit to Finished Goods of $40,860
B) credit to Finished Goods of $40,860
C) credit to Finished Goods of $600
D) debit to Finished Goods of $600
Manufacturing Overhead
Work in Process (3% × $4,000)
Finished Goods (15% × $4,000)
Cost of Goods Sold (82% × $4,000)
217) Castagnola Inc. has provided the following data for the month of January. 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
$
880
$
5,500
$
23,100
$
29,480
Direct labor
4,100
17,600
73,920
95,620
Manufacturing overhead
applied
2,460
7,380
31,160
41,000
Total
$
7,440
$
30,480
$
128,180
$
166,100
Manufacturing overhead for the month was overapplied by $1,000.
The company 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 overhead
applied during the month in those accounts.
The finished goods inventory at the end of January after allocation of any underapplied or
overapplied manufacturing overhead for the month is closest to:
A) $30,660
B) $30,664
C) $30,296
D) $30,300
218) Castagnola Inc. has provided the following data for the month of January. 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
$
880
$
5,500
$
23,100
$
29,480
Direct labor
4,100
17,600
73,920
95,620
Manufacturing overhead
applied
2,460
7,380
31,160
41,000
Total
$
7,440
$
30,480
$
128,180
$
166,100
Manufacturing overhead for the month was overapplied by $1,000.
The company 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 overhead
applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for January would include the following:
A) credit to Cost of Goods Sold of $760
B) debit to Cost of Goods Sold of $128,180
C) credit to Cost of Goods Sold of $128,180
D) debit to Cost of Goods Sold of $760
Manufacturing Overhead
Work in Process (6% × $1,000)
Finished Goods (18% × $1,000)
Cost of Goods Sold (76% × $1,000)
219) Stockman Inc. has provided the following data for the month of November. 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
$
4,070
$
15,680
$
42,080
$
61,830
Direct labor
7,760
27,440
73,640
108,840
Manufacturing overhead
applied
5,130
14,250
37,620
57,000
Total
$
16,960
$
57,370
$
153,340
$
227,670
Manufacturing overhead for the month was overapplied by $1,000.
The company 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 overhead
applied during the month in those accounts.
The work in process inventory at the end of November after allocation of any underapplied or
overapplied manufacturing overhead for the month is closest to:
A) $17,050
B) $17,034
C) $16,886
D) $16,870
220) Stockman Inc. has provided the following data for the month of November. 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
$
4,070
$
15,680
$
42,080
$
61,830
Direct labor
7,760
27,440
73,640
108,840
Manufacturing overhead
applied
5,130
14,250
37,620
57,000
Total
$
16,960
$
57,370
$
153,340
$
227,670
Manufacturing overhead for the month was overapplied by $1,000.
The company 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 overhead
applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for November would include the following:
A) credit to Finished Goods of $250
B) credit to Finished Goods of $57,370
C) debit to Finished Goods of $250
D) debit to Finished Goods of $57,370
Manufacturing Overhead
Work in Process (9% × $1,000)
Finished Goods (25% × $1,000)
Cost of Goods Sold (66% × $1,000)
221) Held Inc. has provided the following data for the month of June. 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
$
5,890
$
14,070
$
95,760
$
115,720
Direct labor
9,680
21,100
136,800
166,580
Manufacturing overhead
applied
5,880
10,080
68,040
84,000
Total
$
21,450
$
44,250
$
300,600
$
366,300
Manufacturing overhead for the month was overapplied by $1,000.
The company 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 overhead
applied during the month in those accounts.
The cost of goods sold for June after allocation of any underapplied or overapplied manufacturing
overhead for the month is closest to:
A) $301,410
B) $299,790
C) $299,600
D) $301,600
222) Held Inc. has provided the following data for the month of June. 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
$
5,890
$
14,070
$
95,760
$
115,720
Direct labor
9,680
21,100
136,800
166,580
Manufacturing overhead
applied
5,880
10,080
68,040
84,000
Total
$
21,450
$
44,250
$
300,600
$
366,300
Manufacturing overhead for the month was overapplied by $1,000.
The company 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 overhead
applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for June would include the following:
A) credit to Work in Process of $21,450
B) credit to Work in Process of $70
C) debit to Work in Process of $21,450
D) debit to Work in Process of $70
Manufacturing Overhead
Work in Process (7% × $1,000)
Finished Goods (12% × $1,000)
Cost of Goods Sold (81% × $1,000)
251
223) The Simkins Corporation uses a job-order costing system. The following activities took place
during the month of May:
a.
Raw materials purchased
$40,000
b.
Raw materials (all direct) used in production
$35,000
c.
Salaries and wages costs:
Direct labor cost
$60,000
Indirect labor cost
$30,000
Sales salaries
$25,000
d.
Factory utility costs
$15,000
e.
Depreciation on factory equipment
$50,000
f.
Advertising expense
$80,000
g.
Manufacturing overhead is applied at the predetermined
rate of 150% of direct labor cost.
h.
Cost of Goods Manufactured for the month
$180,000
i.
Cost of Goods Sold for the month
$150,000
Required:
Prepare journal entries to record the information given above. Key your entries by the letters a
through i.
224) During June, Briganti Corporation purchased $79,000 of raw materials on credit to add to its
raw materials inventory. A total of $64,000 of raw materials was requisitioned from the storeroom
for use in production. These requisitioned raw materials included $4,000 of indirect materials.
Required:
Prepare journal entries to record the purchase of materials and their use in production.
225) During December, Moulding Corporation incurred $76,000 of actual Manufacturing
Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process
was $74,000.
Required:
Prepare journal entries to record the incurrence of manufacturing overhead and the application of
manufacturing overhead to Work in Process.
226) Buckovitch Corporation is a manufacturer that uses job-order costing. The company has
supplied the following data for the just completed year:
Raw materials purchased on account
$482,000
Raw materials (all direct) requisitioned for use in production
$478,000
Direct labor cost
$576,000
Manufacturing overhead:
Indirect labor cost
$136,000
Other manufacturing overhead costs incurred
$414,000
Cost of goods manufactured
$1,565,000
Cost of goods sold (unadjusted)
$1,513,000
Required:
a. What is the journal entry to record raw materials used in production?
b. What is the journal entry to record the direct and indirect labor costs incurred during the year?
c. What is the journal entry to record the transfer of completed goods from Work in Process to
Finished Goods?
d. What is the journal entry to record the unadjusted cost of goods sold?
Work in Process
Raw Materials
Work in Process
Manufacturing Overhead
Wages Payable or Cash
Finished Goods
Work in Process
Cost of Goods Sold
Finished Goods
256
227) The Collins Corporation uses a job-order costing system and applies manufacturing overhead
cost to jobs on the basis of the cost of materials used in production. At the beginning of the most
recent year, the following estimates were made as a basis for computing the predetermined
overhead rate for the year: manufacturing overhead cost, $200,000; direct materials cost,
$160,000. The following transactions took place during the year (all purchases and services were
acquired on account):
a. Raw materials were purchased, $86,000.
b. Raw materials were requisitioned for use in production (all direct materials), $98,000.
c. Utility costs were incurred in the factory, $15,000.
d. Salaries and wages were incurred as follows:
Direct labor
$175,000
Indirect labor
$70,000
Selling and administrative salaries
$125,000
e. Maintenance costs incurred in the factory, $15,000.
f. Advertising costs incurred, $89,000.
g. Depreciation recorded for the year, $80,000 (80% relates to factory assets and the remainder
relates to selling, general, and administrative assets).
h. Rental cost incurred on buildings, $70,000, (75% of the space is occupied by the factory, and
25% is occupied by sales and administration).
i. Miscellaneous selling, general, and administrative costs incurred, $11,000.
j. Manufacturing overhead cost was applied to jobs as per company policy.
k. Cost of goods manufactured for the year, $500,000.
l. Sales for the year totaled $1,000,000. These goods cost $600,000 to produce.
Required:
Prepare journal entries for each of the above transactions. Assume that all transactions with
external suppliers, employees, and customers were conducted in cash.
259
228) Mcie Corporation is a manufacturer that uses job-order costing. The company has supplied
the following data for the just completed year:
Beginning inventories:
Raw materials
$33,000
Work in process
$20,000
Finished goods
$35,000
Estimated total manufacturing overhead at the
beginning of the year
$567,000
Estimated direct labor-hours at the beginning of the
year
36,000
direct labor-hours
Results of operations:
Raw materials purchased on account
$497,000
Raw materials (all direct) requisitioned for use in
production
$452,000
Direct labor cost
$591,000
Actual direct labor-hours
45,000
direct labor-hours
Manufacturing overhead:
Indirect labor cost
$124,000
Other manufacturing overhead costs incurred
$598,000
Cost of goods manufactured
$1,557,000
Required:
a. What is the ending balance in Raw Materials?
b. What is the ending balance in Work in Process?