136) 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
$
$
18,000
Direct labor
$
8,000
$
$
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 work in process inventory balance at the end of October?
A) $23,000
B) $30,500
C) $32,000
D) $43,000
Job C11
Direct materials
$
18,000
Direct labor
5,000
Manufacturing overhead (150% of direct labor cost)
7,500
137) Verrett 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
$
475,000
Raw materials (all direct) requisitioned for use in production
$
476,000
Direct labor cost
$
640,000
Manufacturing overhead:
Indirect labor cost
$
174,000
Other manufacturing overhead costs incurred
$
498,000
Cost of goods manufactured
$
1,469,000
Cost of goods sold (unadjusted)
$
1,430,000
What is the journal entry to record raw materials used in production?
A)
Work in Process
475,000
Raw Materials
475,000
B)
Raw Materials
475,000
Work in Process
475,000
C)
Raw Materials
476,000
Work in Process
476,000
D)
Work in Process
476,000
Raw Materials
476,000
Work in Process
Raw Materials
476,000
138) Verrett 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
$
475,000
Raw materials (all direct) requisitioned for use in production
$
476,000
Direct labor cost
$
640,000
Manufacturing overhead:
Indirect labor cost
$
174,000
Other manufacturing overhead costs incurred
$
498,000
Cost of goods manufactured
$
1,469,000
Cost of goods sold (unadjusted)
$
1,430,000
What is the journal entry to record the direct and indirect labor costs incurred during the year?
A)
Work in Process
640,000
Manufacturing Overhead
174,000
Wages Payable
814,000
B)
Wages Payable
814,000
Work in Process
640,000
Manufacturing Overhead
174,000
C)
Wages Payable
814,000
Direct Labor
640,000
Manufacturing Overhead
174,000
D)
Direct Labor
640,000
Manufacturing Overhead
174,000
Wages Payable
814,000
Work in Process
Manufacturing Overhead
Wages Payable
139) Verrett 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
$
475,000
Raw materials (all direct) requisitioned for use in production
$
476,000
Direct labor cost
$
640,000
Manufacturing overhead:
Indirect labor cost
$
174,000
Other manufacturing overhead costs incurred
$
498,000
Cost of goods manufactured
$
1,469,000
Cost of goods sold (unadjusted)
$
1,430,000
The journal entry to record the transfer of completed goods from Work in Process to Finished
Goods is:
A)
Finished Goods
1,672,500
Work in Process
1,672,500
B)
Work in Process
1,469,000
Finished Goods
1,469,000
C)
Finished Goods
1,469,000
Work in Process
1,469,000
D)
Work in Process
1,672,500
Finished Goods
1,672,500
Finished Goods
Work in Process
140) Verrett 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
$
475,000
Raw materials (all direct) requisitioned for use in production
$
476,000
Direct labor cost
$
640,000
Manufacturing overhead:
Indirect labor cost
$
174,000
Other manufacturing overhead costs incurred
$
498,000
Cost of goods manufactured
$
1,469,000
Cost of goods sold (unadjusted)
$
1,430,000
The journal entry to record the unadjusted Cost of Goods Sold is:
A)
Cost of Goods Sold
1,430,000
Finished Goods
1,430,000
B)
Finished Goods
1,469,000
Cost of Goods Sold
1,469,000
C)
Finished Goods
1,430,000
Cost of Goods Sold
1,430,000
D)
Cost of Goods Sold
1,469,000
Finished Goods
1,469,000
Cost of Goods Sold
Finished Goods
126
141) Niles 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
$
47,000
Work in process
20,000
Estimated total manufacturing overhead at the beginning of
the year
$
646,250
Estimated direct labor-hours at the beginning of the year
47,000
direct
labor-hours
Results of operations:
Raw materials purchased on account
$
538,000
Raw materials (all direct) requisitioned for use in
production
$
535,000
Direct labor cost
$
699,000
Actual direct labor-hours
37,000
direct
labor-hours
Manufacturing overhead:
Indirect labor cost
$
134,000
Other manufacturing overhead costs incurred
$
453,000
Cost of goods manufactured
$
1,568,000
How much is the ending balance in the Raw Materials inventory account?
A) $97,000
B) $585,000
C) $47,000
D) $50,000
128
142) Niles 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
$
47,000
Work in process
20,000
Estimated total manufacturing overhead at the beginning of
the year
$
646,250
Estimated direct labor-hours at the beginning of the year
47,000
direct
labor-hours
Results of operations:
Raw materials purchased on account
$
538,000
Raw materials (all direct) requisitioned for use in
production
$
535,000
Direct labor cost
$
699,000
Actual direct labor-hours
37,000
direct
labor-hours
Manufacturing overhead:
Indirect labor cost
$
134,000
Other manufacturing overhead costs incurred
$
453,000
Cost of goods manufactured
$
1,568,000
The ending balance in the Work in Process inventory account is:
A) $214,225
B) $154,750
C) $174,750
D) $194,750
143) The accounting records of Omar Corporation contained the following information for last
year:
Beginning
Ending
Direct materials inventory
$
9,000
$
7,000
Work in process inventory
$
17,000
$
31,000
Finished goods inventory
$
10,000
$
15,000
Manufacturing
Costs Incurred
Direct materials used
$
72,000
Overhead applied
$
24,000
Direct labor cost (10,000 hours)
$
80,000
Depreciation
$
10,000
Rent
$
12,000
Taxes
$
8,000
Unadjusted cost of goods sold (does not include
overapplied or underapplied overhead)
$
157,000
Selling, General, and
Administrative Costs Incurred
Advertising
$
35,000
Rent
$
20,000
Clerical
$
25,000
The amount of direct material purchased during the year was:
A) $66,000
B) $70,000
C) $65,000
D) $74,000
144) The accounting records of Omar Corporation contained the following information for last
year:
Beginning
Ending
Direct materials inventory
$
9,000
$
7,000
Work in process inventory
$
17,000
$
31,000
Finished goods inventory
$
10,000
$
15,000
Manufacturing
Costs Incurred
Direct materials used
$
72,000
Overhead applied
$
24,000
Direct labor cost (10,000 hours)
$
80,000
Depreciation
$
10,000
Rent
$
12,000
Taxes
$
8,000
Unadjusted cost of goods sold (does not include
overapplied or underapplied overhead)
$
157,000
Selling, General, and
Administrative Costs Incurred
Advertising
$
35,000
Rent
$
20,000
Clerical
$
25,000
The total costs added to Work in Process during the year were:
A) $206,000
B) $162,000
C) $176,000
D) $182,000
Direct materials used
$
72,000
Overhead applied
24,000
Direct labor cost
80,000
Total
$
176,000
132
145) The accounting records of Omar Corporation contained the following information for last
year:
Beginning
Ending
Direct materials inventory
$
9,000
$
7,000
Work in process inventory
$
17,000
$
31,000
Finished goods inventory
$
10,000
$
15,000
Manufacturing
Costs Incurred
Direct materials used
$
72,000
Overhead applied
$
24,000
Direct labor cost (10,000 hours)
$
80,000
Depreciation
$
10,000
Rent
$
12,000
Taxes
$
8,000
Unadjusted cost of goods sold (does not include
overapplied or underapplied overhead)
$
157,000
Selling, General, and
Administrative Costs Incurred
Advertising
$
35,000
Rent
$
20,000
Clerical
$
25,000
If Omar Corporation applies overhead to jobs on the basis of direct labor-hours and Job 3 took 120
hours, how much overhead should be applied to that job?
A) $960
B) $360
C) $528
D) $288
134
146) The accounting records of Omar Corporation contained the following information for last
year:
Beginning
Ending
Direct materials inventory
$
9,000
$
7,000
Work in process inventory
$
17,000
$
31,000
Finished goods inventory
$
10,000
$
15,000
Manufacturing
Costs Incurred
Direct materials used
$
72,000
Overhead applied
$
24,000
Direct labor cost (10,000 hours)
$
80,000
Depreciation
$
10,000
Rent
$
12,000
Taxes
$
8,000
Unadjusted cost of goods sold (does not include
overapplied or underapplied overhead)
$
157,000
Selling, General, and
Administrative Costs Incurred
Advertising
$
35,000
Rent
$
20,000
Clerical
$
25,000
The cost of goods manufactured for the year was:
A) $190,000
B) $162,000
C) $168,000
D) $135,000
136
147) Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes
out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The
company has supplied the following data for the just completed year:
Beginning inventories:
Finished goods
$
30,000
Estimated total manufacturing overhead at the beginning of
the year
$
568,000
Estimated direct labor-hours at the beginning of the year
32,000
direct
labor-hours
Results of operations:
Raw materials (all direct) requisitioned for use in
production
$
501,000
Direct labor cost
$
683,000
Actual direct labor-hours
33,000
direct
labor-hours
Manufacturing overhead:
Indirect labor cost
$
176,000
Other manufacturing overhead costs incurred
$
420,000
Selling and administrative:
Selling and administrative salaries
$
219,000
Other selling and administrative expenses
$
346,000
Cost of goods manufactured
$
1,567,000
Sales revenue
$
2,498,000
Cost of goods sold (unadjusted)
$
1,376,000
How much is the total manufacturing cost added to work in process during the year?
A) $1,268,750
B) $1,769,750
C) $1,567,000
D) $1,184,000
138
148) Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes
out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The
company has supplied the following data for the just completed year:
Beginning inventories:
Finished goods
$
30,000
Estimated total manufacturing overhead at the beginning of
the year
$
568,000
Estimated direct labor-hours at the beginning of the year
32,000
direct
labor-hours
Results of operations:
Raw materials (all direct) requisitioned for use in
production
$
501,000
Direct labor cost
$
683,000
Actual direct labor-hours
33,000
direct
labor-hours
Manufacturing overhead:
Indirect labor cost
$
176,000
Other manufacturing overhead costs incurred
$
420,000
Selling and administrative:
$
Selling and administrative salaries
$
219,000
Other selling and administrative expenses
$
346,000
Cost of goods manufactured
$
1,567,000
Sales revenue
$
2,498,000
Cost of goods sold (unadjusted)
$
1,376,000
The cost of goods available for sale is:
A) $1,376,000
B) $1,567,000
C) $1,769,750
D) $1,597,000
140
149) Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes
out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The
company has supplied the following data for the just completed year:
Beginning inventories:
Finished goods
$
30,000
Estimated total manufacturing overhead at the beginning of
the year
$
568,000
Estimated direct labor-hours at the beginning of the year
32,000
direct
labor-hours
Results of operations:
Raw materials (all direct) requisitioned for use in
production
$
501,000
Direct labor cost
$
683,000
Actual direct labor-hours
33,000
direct
labor-hours
Manufacturing overhead:
Indirect labor cost
$
176,000
Other manufacturing overhead costs incurred
$
420,000
Selling and administrative:
$
Selling and administrative salaries
$
219,000
Other selling and administrative expenses
$
346,000
Cost of goods manufactured
$
1,567,000
Sales revenue
$
2,498,000
Cost of goods sold (unadjusted)
$
1,376,000
The net operating income is:
A) $892,750
B) $765,750
C) $546,750
D) $1,111,750