116) Sagon Corporation has provided data concerning the Corporation’s Manufacturing Overhead
account for the month of September. Prior to the closing of the overapplied or underapplied
balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was
$76,000 and the total of the credits to the account was $66,000. Which of the following statements
is true?
A) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the
month was $76,000.
B) Actual manufacturing overhead incurred during the month was $66,000.
C) Manufacturing overhead applied to Work in Process for the month was $76,000.
D) Manufacturing overhead for the month was underapplied by $10,000.
117) Mackinaw Manufacturing Corporation uses a predetermined overhead rate based on direct
labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 17,000
actual direct labor-hours and incurred $145,000 of actual manufacturing overhead cost. They had
estimated at the beginning of the year that 16,000 direct labor-hours would be worked and
$144,000 of manufacturing overhead costs incurred. The Corporation had calculated a
predetermined overhead rate of $9 per direct labor-hour. The Corporation’s manufacturing
overhead for the year was:
A) overapplied by $8,000
B) underapplied by $8,000
C) overapplied by $1,000
D) underapplied by $1,000
118) Coatney Inc. has provided the following data for the month of October. 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
$
3,760
$
15,870
$
76,130
$
95,760
Direct labor
2,400
12,420
59,580
74,400
Manufacturing overhead
applied
1,950
6,240
30,810
39,000
Total
$
8,110
$
34,530
$
166,520
$
209,160
Manufacturing overhead for the month was overapplied by $7,000.
The Corporation 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
manufacturing overhead applied during the month in those accounts.
The finished goods inventory at the end of October after allocation of any underapplied or
overapplied manufacturing overhead for the month is closest to:
A) $35,686
B) $33,374
C) $33,410
D) $35,650
104
119) Niebla Corporation has provided data concerning the Corporation’s Manufacturing Overhead
account for the month of July. Prior to the closing of the overapplied or underapplied balance to
Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $72,000
and the total of the credits to the account was $77,000. Which of the following statements is true?
A) Manufacturing overhead applied to Work in Process for the month was $72,000.
B) Actual manufacturing overhead for the month was $72,000.
C) Manufacturing overhead for the month was underapplied by $5,000.
D) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the
month was $77,000.
120) Precision Corporation used a predetermined overhead rate last year of $3 per direct
labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year. Actual
costs and activity during the year were:
Actual manufacturing overhead cost incurred
$
84,000
Actual direct labor-hours worked
27,000
The overapplied or underapplied manufacturing overhead for the year was:
A) $3,000 underapplied
B) $3,000 overapplied
C) $12,000 underapplied
D) $12,000 overapplied
Actual manufacturing overhead incurred
$
84,000
($3 per direct labor-hour x 27,000 direct labor-hours)
81,000
Underapplied (overapplied) manufacturing overhead
$
121) On January 1, Schaf Corporation had $23,000 of raw materials on hand. During the month,
the company purchased an additional $54,000 of raw materials. During January, $50,000 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:
A) debit to Raw Materials of $73,000
B) credit to Raw Materials of $54,000
C) credit to Raw Materials of $73,000
D) debit to Raw Materials of $54,000
122) On January 1, Schaf Corporation had $23,000 of raw materials on hand. During the month,
the company purchased an additional $54,000 of raw materials. During January, $50,000 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:
A) debit to Work in Process of $50,000
B) debit to Raw Materials of $50,000
C) credit to Manufacturing Overhead of $6,000
D) debit to Work in Process of $44,000
123) On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the
month, the company purchased an additional $78,000 of raw materials. During November,
$95,000 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 $3,000.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 November total:
A) $95,000
B) $78,000
C) $32,000
D) $110,000
124) On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the
month, the company purchased an additional $78,000 of raw materials. During November,
$95,000 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 $3,000.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 November total:
A) $95,000
B) $78,000
C) $32,000
D) $110,000
125) On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the
month, the company purchased an additional $78,000 of raw materials. During November,
$95,000 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 $3,000.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
November total:
A) $78,000
B) $95,000
C) $92,000
D) $0
126) On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the
month, the company purchased an additional $78,000 of raw materials. During November,
$95,000 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 $3,000.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
November total:
A) $78,000
B) $92,000
C) $0
D) $95,000
127) On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the
month, the company purchased an additional $78,000 of raw materials. During November,
$95,000 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 $3,000.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 November total:
A) $95,000
B) $3,000
C) $0
D) $92,000
128) On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the
month, the company purchased an additional $78,000 of raw materials. During November,
$95,000 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 $3,000.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 November total:
A) $0
B) $3,000
C) $92,000
D) $95,000
129) During March, Pendergraph Corporation incurred $60,000 of actual Manufacturing
Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process
was $62,000.
The journal entry to record the incurrence of the actual Manufacturing Overhead costs would
include a:
A) credit to Manufacturing Overhead of $60,000
B) credit to Work in Process of $62,000
C) debit to Work in Process of $62,000
D) debit to Manufacturing Overhead of $60,000
130) During March, Pendergraph Corporation incurred $60,000 of actual Manufacturing
Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process
was $62,000.
The journal entry to record the application of Manufacturing Overhead to Work in Process would
include a:
A) credit to Manufacturing Overhead of $62,000
B) debit to Work in Process of $60,000
C) credit to Work in Process of $60,000
D) debit to Manufacturing Overhead of $62,000
131) Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1
May 30
Raw materials
$
25,500
$
30,000
Finished Goods
$
75,000
$
66,000
Work in Process
$
13,500
$
16,500
During May, $58,500 in raw materials (all direct materials) were drawn from inventory and used in
production. The company’s predetermined overhead rate was $12 per direct labor-hour, and it paid
its direct labor workers $15 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 $7,050 of direct materials cost. The Corporation incurred $42,000 of
actual manufacturing overhead cost during the month and applied $39,600 in manufacturing
overhead cost.
The raw materials purchased during May totaled:
A) $58,500
B) $67,500
C) $54,000
D) $63,000
132) Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1
May 30
Raw materials
$
25,500
$
30,000
Finished Goods
$
75,000
$
66,000
Work in Process
$
13,500
$
16,500
During May, $58,500 in raw materials (all direct materials) were drawn from inventory and used in
production. The company’s predetermined overhead rate was $12 per direct labor-hour, and it paid
its direct labor workers $15 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 $7,050 of direct materials cost. The Corporation incurred $42,000 of
actual manufacturing overhead cost during the month and applied $39,600 in manufacturing
overhead cost.
The direct materials cost in the May 1 Work in Process inventory account totaled:
A) $9,900
B) $5,400
C) $9,000
D) $4,500
133) Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1
May 30
Raw materials
$
25,500
$
30,000
Finished Goods
$
75,000
$
66,000
Work in Process
$
13,500
$
16,500
During May, $58,500 in raw materials (all direct materials) were drawn from inventory and used in
production. The company’s predetermined overhead rate was $12 per direct labor-hour, and it paid
its direct labor workers $15 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 $7,050 of direct materials cost. The Corporation incurred $42,000 of
actual manufacturing overhead cost during the month and applied $39,600 in manufacturing
overhead cost.
The actual direct labor-hours worked during May totaled:
A) 2,800 hours
B) 3,500 hours
C) 3,300 hours
D) 3,600 hours
134) Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1
May 30
Raw materials
$
25,500
$
30,000
Finished Goods
$
75,000
$
66,000
Work in Process
$
13,500
$
16,500
During May, $58,500 in raw materials (all direct materials) were drawn from inventory and used in
production. The company’s predetermined overhead rate was $12 per direct labor-hour, and it paid
its direct labor workers $15 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 $7,050 of direct materials cost. The Corporation incurred $42,000 of
actual manufacturing overhead cost during the month and applied $39,600 in manufacturing
overhead cost.
The amount of direct labor cost in the May 30 Work in Process inventory was:
A) $4,200
B) $5,250
C) $4,950
D) $9,450
135) Kapanga Manufacturing Corporation uses a job-order costing system and started the month
of October with a zero balance in its work in process and finished goods inventory accounts.
During October, Kapanga worked on three jobs and incurred the following direct costs on those
jobs:
Job B18
Job B19
Job C11
Direct materials
$
12,000
$
25,000
$
18,000
Direct labor
$
8,000
$
10,000
$
5,000
Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October,
Kapanga completed Jobs B18 and B19 and sold Job B19.
How much is Kapanga’s cost of goods manufactured for October?
A) $ 50,000
B) $ 55,000
C) $ 78,000
D) $ 82,000
Job B18
Job B19
Job C11
Direct materials
$
12,000
$
25,000
$
18,000
Direct labor
8,000
10,000
5,000
cost