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Student name:__________
1) 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
$60,0
00
Indirect labor cost
$30,0
00
Sales salaries
$25,0
00
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.
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2) During June, Briganti Corporation purchased $96,000 of raw materials on credit to add to
its raw materials inventory. A total of $81,000 of raw materials was requisitioned from the
storeroom for use in production. These requisitioned raw materials included $21,000 of indirect
materials.
Required:
Prepare journal entries to record the purchase of materials and their use in production.
3) During December, Moulding Corporation incurred $95,000 of actual Manufacturing
Overhead costs. During the same period, the Manufacturing Overhead applied to Work in
Process was $93,000.
Required:
Prepare journal entries to record the incurrence of manufacturing overhead and the application
of manufacturing overhead to Work in Process.
4) 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
$1,565,00
0
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Cost of goods sold (unadjusted)
$1,513,00
0
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?
5) 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
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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.
6) 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
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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?
7) Kahanaoi 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:
Raw materials $ 38,000
Work in process $ 16,000
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Finished goods $ 39,000
Estimated total manufacturing overhead at the beginning of the year
$ 708,000
Estimated direct labor-hours at the beginning of the year 48,000
direct labor-hours
Results of operations:
Raw materials purchased on account $ 453,000
Raw materials (all direct) requisitioned for use in production $
417,000
Direct labor cost $ 545,000
Actual direct labor-hours 46,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 151,000
Other manufacturing overhead costs incurred $ 449,000
Selling and administrative:
Selling and administrative salaries $ 193,000
Other selling and administrative expenses $ 355,000
Cost of goods manufactured $ 1,568,000
Sales revenue $ 2,489,000
Cost of goods sold (unadjusted) $ 1,498,000
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Required:
a. What is the journal entry to record raw materials used in production?
b. What is the ending balance in Raw Materials?
c. What is the journal entry to record the direct and indirect labor costs incurred during the year?
d. What is the total amount of manufacturing overhead applied to production during the year?
e. What is the total manufacturing cost added to Work in Process during the year?
f. What is the journal entry to record the transfer of completed goods from Work in Process to
Finished Goods?
g. What is the ending balance in Work in Process?
h. Is manufacturing overhead overapplied or underapplied for the year? By how much?
i. What is the cost of goods available for sale during the year?
j. What is the journal entry to record the unadjusted cost of goods sold?
k. What is the adjusted cost of goods sold for the year?
l. What is the gross margin for the year?
m. What is the net operating income for the year?
8) Molin 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:
Estimated total manufacturing overhead at the beginning of the year
$ 638,750
Estimated direct labor-hours at the beginning of the year 35,000
direct labor-hours
Results of operations:
Actual direct labor-hours 40,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 166,000
Other manufacturing overhead costs incurred $ 595,000
Cost of goods sold (unadjusted) $ 1,570,000
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Required:
a. What is the total amount of manufacturing overhead applied to production during the year?
b. Is manufacturing overhead overapplied or underapplied for the year? By how much?
c. What is the adjusted cost of goods sold for the year?
9) Blasi 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 $ 33,000
Estimated total manufacturing overhead at the beginning of the year
$ 540,000
Estimated direct labor-hours at the beginning of the year 40,000
direct labor-hours
Results of operations:
Raw materials (all direct) requisitioned for use in production $
462,000
Direct labor cost $ 567,000
Actual direct labor-hours 39,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 121,000
Other manufacturing overhead costs incurred $ 451,000
Selling and administrative:
Selling and administrative salaries $ 263,000
Other selling and administrative expenses $ 299,000
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Cost of goods manufactured $ 1,371,000
Sales revenue $ 3,298,000
Cost of goods sold (unadjusted) $ 1,302,000
Required:
a. What is the total manufacturing cost added to Work in Process during the year?
b. What is the cost of goods available for sale during the year?
c. What is the net operating income for the year?
10) Fossil Manufacturing uses a predetermined overhead rate of $17.80 per direct labor-hour.
This predetermined rate was based on 11,000 estimated direct-labor-hours and $195,800 of
estimated total manufacturing overhead. The company incurred actual manufacturing overhead
costs of $194,000 and 10,500 direct labor-hours.
Required:
a. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
b. Assuming that the company closed manufacturing overhead to cost of goods sold, make the
journal entry to close manufacturing overhead.
c. What is the effect of this entry on the company’s gross margin?
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11) Dotsero Technology, Inc., has a job-order costing system. The company uses
predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The
predetermined overhead rate in Department A is based on machine-hours, and the rate in
Department B is based on direct materials cost. At the beginning of the most recent year, the
company’s management made the following estimates for the year:
Department A Department B
Machine-hours 70,000 19,000
Direct labor-hours 30,000 60,000
Direct materials $195,000 $282,000
Direct labor $260,000 $520,000
Manufacturing overhead $420,000 $705,000
Job 243 entered into production an April 1 and was completed on May 12. The company’s cost
records show the following information about the job:
Department A Department B
Machine-hours 250 60
Direct labor-hours 70 120
Direct materials $840 $1,100
Direct labor $610 $880
At the end of the year, the records of Dotsero showed the following actual cost and operating
data for all jobs worked on during the year:
Department A Department B
Machine-hours 61,000 20,000
Direct labor-hours 28,000 66,000
Direct materials $156,000 $284,000
Manufacturing overhead $385,000 $705,000
Required:
a. Compute the predetermined overhead rates for Department A and Department B.
b. Compute the total overhead cost applied to Job 243.
c. Compute the amount of underapplied or overapplied overhead in each department at the end
of the current year.
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12) Janeway Corporation uses a job-order costing system and has provided the following
partially completed T-account summary for the past year.
Raw Materials
Debit Credit
Balance 1/1 14,000 Credits ?
Debits 124,000
Balance 12/31 21,000
Required:
What was the cost of raw materials requisitioned for use in production during the year?
13) Falkenstein Corporation uses a job-order costing system and has provided the following
partially completed T-account summary for the past year.
Raw Materials
Debit Credit
Balance 1/1 14,000 Credits ?
Debits 140,000
Balance 12/31 23,000
Work In Process
Debit Credit
Balance 1/1 16,000 Credits 420,000
Direct materials 106,000
Direct labor 12,000
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Overhead applied 225,000
Balance 12/31 ?
Required:
What was the cost of indirect materials requisitioned for use in production during the year?
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14) Sefcovic Enterprises LLC recorded the following transactions for the just completed
month. The company had no beginning inventories.
1. (1) Raw materials purchased for cash, $110,000
2. (2) Direct materials requisitioned for use in production, $79,000
3. (3) Indirect materials requisitioned for use in production, $15,000
4. (4) Direct labor wages incurred and paid, $125,000
5. (5) Indirect labor wages incurred and paid, $22,000
6. (6) Additional manufacturing overhead costs incurred and paid, $134,000
7. (7) Manufacturing overhead costs applied to jobs, $125,000
8. (8) All of the jobs in process were completed.
9. (9) All of the completed jobs were shipped to customers.
10. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of
Goods Sold.
Required:
a. Post the above transactions to the T-accounts: b. Determine the adjusted cost of goods sold
for the month.
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15) Wears Corporation uses a job-order costing system and has provided the following
partially completed T-account summary for the past year.
Finished Goods
Debit Credit
Balance 1/1 48,000 Credits ?
Debits ?
Balance 12/31 69,000
The Cost of Goods Manufactured for the year was $537,000.
Required:
What was the Cost of Goods Sold for the year?
16) Overly Corporation uses a job-order costing system and has provided the following
partially completed T-account summary for the past year.
Work in Process
Debit Credit
Balance 1/1 16,000 Credits ?
Debits 555,000
Balance 12/31 28,000
Required:
What was the cost of completed jobs transferred from Work in Process to Finished Goods
during the year?
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17) Easterling Corporation uses a job-order costing system. The following data relate to the
just completed month’s operations.
Beginning balance in Work in Process $43,000
(1)Raw materials purchased on account $172,000
(2)Direct materials requisitioned for use in production $125,000
(3)Indirect materials requisitioned for use in production $19,000
(4)Direct labor wages incurred $78,000
(5)Indirect labor wages incurred $102,000
(6)Depreciation recorded on factory equipment $36,000
(7)Additional manufacturing overhead costs incurred $77,000
(8)Manufacturing overhead costs applied to jobs $231,000
(9)Cost of jobs completed and transferred from Work in Process to
Finished Goods $402,000
Required:
a. Where appropriate, post the above transactions to the Work in Process and Manufacturing
Overhead T-accounts.
b. Determine the underapplied or overapplied overhead for the month.
18) Eppich Corporation has provided the following data for the most recent month:
Raw materials, beginning balance $23,000
Work in process, beginning balance $33,800
Finished Goods, beginning balance $51,800
Transactions:
(1)Raw materials purchases $78,600
(2)Raw materials used in production (all direct materials) $78,400
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(3)Direct labor $53,800
(4)Manufacturing overhead costs incurred $95,000
(5)Manufacturing overhead applied $73,800
(6)Cost of units completed and transferred from Work in Process to
Finished Goods $190,000
(7)Any overapplied or underapplied manufacturing overhead is closed
to Cost of Goods Sold ?
(8)Finished goods are sold $223,200
Required:
Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, Manufacturing
Overhead, and Cost of Goods Sold. Record the beginning balances and each of the transactions
listed above. Finally, determine the ending balances.
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19) Alberta Corporation uses a job-order costing system. The following data relate to the just
completed month’s operations.
1. (1) Direct materials requisitioned for use in production, $170,000
2. (2) Indirect materials requisitioned for use in production, $11,000
3. (3) Direct labor wages incurred, $105,000
4. (4) Indirect labor wages incurred, $103,000
5. (5) Depreciation recorded on factory equipment, $38,000
6. (6) Additional manufacturing overhead costs incurred, $63,000
7. (7) Manufacturing overhead costs applied to jobs, $200,000
8. (8) Cost of jobs completed and transferred from Work in Process to Finished Goods,
$450,000
Required:
a. Where appropriate, post the above transactions to the Work in Process and Manufacturing
Overhead T-accounts.
b. Determine the underapplied or overapplied overhead for the month.
20) Doogan Corporation uses a job-order costing system and has provided the following
partially completed summary T-accounts for the just completed period:
Work In Process
Debit Credit
Balance 23,000 Credits 465,000
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Direct materials 87,000
Direct labor 148,000
Overhead applied 212,000
Balance 5,000
Manufacturing Overhead
Debit Credit
Debits 246,000 Credits ?
Required:
Was manufacturing overhead underapplied or overapplied? By how much?
21) Shantz Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $32,000
Indirect materials included in manufacturing overhead $5,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $99,000
Overapplied overhead $2,000
Beginning Ending
Raw materials inventory $12,000 $16,000
Work in process inventory $48,000 $53,000
Finished goods inventory $41,000 $47,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
a. Prepare a Schedule of Cost of Goods Manufactured for the month.
b. Prepare a Schedule of Cost of Goods Sold for the month.
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22) Ellithorpe Corporation has provided the following data concerning last month’s
operations.
Cost of goods manufactured $160,000
Underapplied overhead $5,000
Beginning finished goods inventory $32,000
Ending finished goods inventory $44,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
Determine the adjusted cost of goods sold for the month.
23) Tondre Corporation has provided the following data concerning last month’s operations.
Direct materials $24,000
Direct labor $58,000
Manufacturing overhead cost applied to Work in Process $87,000
Overapplied overhead $1,000
Beginning Ending
Raw materials inventory $12,000 $17,000
Work in process inventory $50,000 $77,000
Finished goods inventory $28,000 $48,000
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Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
a. Determine the cost of goods manufactured for the month.
b. Prepare a Schedule of Cost of Goods Sold for the month.
24) Rochford Corporation has provided the following data concerning last month’s
operations.
Purchases of raw materials $25,000
Indirect materials included in manufacturing overhead $5,000
Direct labor cost $58,000
Manufacturing overhead cost applied to Work in Process $73,000
Beginning Ending
Raw materials inventory $11,000 $21,000
Work in process inventory $49,000 $74,000
Required:
Determine the cost of goods manufactured for the month.
25) Rodenberger Corporation has provided the following data concerning last month’s
operations.
Purchases of raw materials $31,000
Indirect materials included in manufacturing overhead $6,000
Beginning Ending
Raw materials inventory $12,000 $17,000
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Required:
Determine the direct materials cost for the month.
26) Bledsoe Corporation has provided the following data for the month of November:
Inventories Beginning Ending
Raw materials $ 25,900 $ 21,900
Work in process $ 17,900 $ 10,900
Finished Goods $ 48,900 $ 56,900
Additional information:
Raw materials purchases $72,900
Direct labor cost $92,900
Manufacturing overhead cost incurred $42,990
Indirect materials included in manufacturing overhead cost incurred
$4,090
Manufacturing overhead cost applied to Work in Process $41,900
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
27) Baab Corporation is a manufacturing firm that uses job-order costing. The company’s
inventory balances were as follows at the beginning and end of the year:
Beginning Balance Ending Balance
Raw materials $14,400 $22,400
Work in process $27,400 $9,400
Finished Goods $62,400 $77,400
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● The company applies overhead to jobs using a predetermined overhead rate based on machine-
hours. At the beginning of the year, the company estimated that it would work 33,400 machine-
hours and incur $260,520 in manufacturing overhead cost. The following transactions were
recorded for the year:
● Raw materials were purchased, $315,400.
● Raw materials were requisitioned for use in production, $307,400 ($280,600 direct and
$26,800 indirect).
● The following employee costs were incurred: direct labor, $377,400; indirect labor, $96,400;
and administrative salaries, $172,400.
● Selling costs, $147,400.
● Factory utility costs, $10,400.
● Depreciation for the year was $151,000 of which $135,000 is related to factory operations
and $16,000 is related to selling, general, and administrative activities.
● Manufacturing overhead was applied to jobs. The actual level of activity for the year was
34,080 machine-hours.
● Sales for the year totaled $1,269,000.
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Was the overhead underapplied or overapplied? By how much?
c. Prepare an income statement for the year. The company closes any underapplied or
overapplied overhead to Cost of Goods Sold.
28) The following cost data relate to the manufacturing activities of the Kanaba Corporation
last year:
Manufacturing overhead costs:
Property taxes $1,500
Utilities, factory 2,500
Indirect labor 5,000
Depreciation, factory 12,000
Insurance, factory 3,000
Total $24,000
Other costs incurred:
Purchases of direct materials $16,000
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Direct labor cost $20,000
Inventories:
Direct materials, January 1 $4,000
Direct materials, December 31 $3,500
Work in process, January 1 $3,000
Work in process, December 31 $3,750
The company uses a predetermined overhead rate to apply manufacturing overhead cost to
production. The rate last year was $5.00 per machine-hour; a total of 5,000 machine-hours were
recorded for the year.
Required:
a. Compute the amount of underapplied or overapplied overhead cost for the year.
b. Prepare a schedule of Cost of Goods Manufactured for the year.
29) Rieb Inc. has provided the following data for the month of September. 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 $3,770 $8,850 $47,370 $59,990
Direct labor 9,930 24,180 130,110 164,220
Manufacturing overhead applied 6,520 11,410 63,570 81,500
Total $20,220 $44,440 $241,050 $305,710
Manufacturing overhead for the month was overapplied by $7,450.
The company allocates any underapplied or overapplied 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.
Required:
Provide the journal entry that would record the allocation of underapplied or overapplied
among work in process, finished goods, and cost of goods sold.
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30) Testor Products uses a job-order costing system with a predetermined overhead rate
based on machine-hours. The company closes out any underapplied or overapplied overhead to
Cost of Goods Sold.
Required:
If overhead is overapplied, what adjustment does the company make to Cost of Goods Sold? Is
Cost of Goods Sold increased or decreased? Why?
31) Stangl Inc. has provided the following data for the month of September. 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 $1,510 $7,440 $14,460 $23,410
Direct labor 5,310 17,700 34,440 57,450
Manufacturing overhead applied 3,848 8,880 16,872 29,600
Total $10,668 $34,020 $65,772 $110,460
Manufacturing overhead for the month was underapplied by $3,300.
The company allocates any underapplied or overapplied overhead among work in process,
finished goods, and cost of goods sold at the end of the month on the basis of the overhead
applied during the month in those accounts.
Required:
Determine the cost of work in process, finished goods, and cost of goods sold AFTER
allocation of the underapplied or overapplied overhead for the period.
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32) Gonzalez, Incorporated manufactures stereo speakers in two factories; one in Vandalia,
Illinois and another in Modesto, California. The Vandalia factory uses direct labor cost (DL$) for
its overhead rate and the Modesto factory uses machine-hours (MHs) for its overhead rate.
Information related to both plants for last year is presented below:
Vandalia factory Modesto factory
Estimated total manufacturing overhead cost $ 1,000,000 $
1,600,000
Estimated total amount of allocation base (a) 200,000 MHs
Predetermined overhead rate 10 per DL$ (d)
Actual amount of allocation base (b) 190,000 MHs
Actual manufacturing overhead $ 1,092,500 $ 1,472,500
Applied manufacturing overhead $ 1,010,000 (e)
Under or (over)applied overhead (c) (f)
Required:
Fill in the lettered blanks above. SHOW YOUR CALCULATIONS.
33) Dotsero Technology, Incorporated, has a job-order costing system. The company uses
predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The
predetermined overhead rate in Department A is based on machine-hours, and the rate in
Department B is based on direct materials cost. At the beginning of the most recent year, the
company’s management made the following estimates for the year:
Department A Department B
Machine-hours 70,000 19,000
Direct labor-hours 30,000 60,000
Direct materials $195,000 $282,000
Direct labor $260,000 $520,000
Manufacturing overhead $420,000 $705,000
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Job 243 entered into production an April 1 and was completed on May 12. The company’s cost
records show the following information about the job:
Department A Department B
Machine-hours 250 60
Direct labor-hours 70 120
Direct materials $840 $1,100
Direct labor $610 $880
At the end of the year, the records of Dotsero showed the following actual cost and operating
data for all jobs worked on during the year:
Department A Department B
Machine-hours 61,000 20,000
Direct labor-hours 28,000 66,000
Direct materials $156,000 $284,000
Manufacturing overhead $385,000 $705,000
Required:
a. Compute the predetermined overhead rates for Department A and Department B.
b. Compute the total overhead cost applied to Job 243.
c. Compute the amount of underapplied or overapplied overhead in each department at the end
of the current year.
34) Rieb Incorporated has provided the following data for the month of September. 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 $3,740 $8,820 $47,340 $59,900
Direct labor 9,900 24,150 130,080 164,130
Manufacturing overhead applied 6,400 11,200 62,400 80,000
Total $20,040 $44,170 $239,820 $304,030
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Manufacturing overhead for the month was overapplied by $7,300.
The company allocates any underapplied or overapplied 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.
Required:
Provide the journal entry that would record the allocation of underapplied or overapplied
among work in process, finished goods, and cost of goods sold.
35) Stangl Incorporated has provided the following data for the month of September. 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 $1,660 $7,590 $14,610 $23,860
Direct labor 5,460 17,850 34,590 57,900
Manufacturing overhead applied 4,238 9,780 18,582 32,600
Total $11,358 $35,220 $67,782 $114,360
Manufacturing overhead for the month was underapplied by $4,800.
The company allocates any underapplied or overapplied 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.
Required:
Determine the cost of work in process, finished goods, and cost of goods sold AFTER
allocation of the underapplied or overapplied overhead for the period.
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36) 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.
37) 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.
38) Prahm Incorporated has provided the following data for August:
Raw materials, beginning balance $19,000
Work in process, beginning balance $33,000
Finished Goods, beginning balance $52,000
Transactions:
(1) Raw materials purchases $ 67,000
(2) Raw materials used in production (all direct materials) $ 78,000
(3) Direct labor $ 77,000
(4) Manufacturing overhead costs incurred $ 64,000
(5) Manufacturing overhead applied $ 71,000
(6) Cost of units completed and transferred from Work in Process to
Finished Goods $255,000
(7) Any overapplied or underapplied manufacturing overhead is closed
to Cost of Goods Sold ?
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(8) Finished goods are sold $294,000
Required:
Complete the following T-accounts by recording the beginning balances and each of the
transactions listed above.
39) Eppich Corporation has provided the following data for the most recent month:
Raw materials, beginning balance $16,000
Work in process, beginning balance $31,000
Finished Goods, beginning balance $49,000
Transactions:
(1) Raw materials purchases $ 80,000
(2) Raw materials used in production (all direct materials) $ 77,000
(3) Direct labor $ 51,000
(4) Manufacturing overhead costs incurred $ 88,000
(5) Manufacturing overhead applied $ 71,000
(6) Cost of units completed and transferred from Work in Process to
Finished Goods $190,000
(7) Any overapplied or underapplied manufacturing overhead is closed
to Cost of Goods Sold ?
(8) Finished goods are sold $219,000
Required:
Complete the following T-accounts by recording the beginning balances and each of the
transactions listed above.
40) During May, Sharpton Corporation recorded the following:
Raw materials, beginning balance $18,000
Work in process, beginning balance $32,000
Finished Goods, beginning balance $56,000
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Transactions:
(1) Raw materials purchases $ 65,000
(2) Raw materials used in production (all direct materials) $ 73,000
(3) Direct labor $ 74,000
(4) Manufacturing overhead costs incurred $ 72,000
(5) Manufacturing overhead applied $ 89,000
(6) Cost of units completed and transferred from Work in Process to
Finished Goods $252,000
(7) Any overapplied or underapplied manufacturing overhead is closed
to Cost of Goods Sold ?
(8) Finished goods are sold $288,000
Required:
Complete the following T-accounts by recording the beginning balances and each of the
transactions listed above.
41) Bledsoe Corporation has provided the following data for the month of November:
Inventories: Beginning Ending
Raw materials $25,000 $21,000
Work in process $17,000 $10,000
Finished Goods $48,000 $56,000
Additional information:
Raw materials purchases $72,000
Direct labor cost $92,000
Manufacturing overhead cost incurred $42,000
Indirect materials included in manufacturing overhead cost incurred
$ 4,000
Manufacturing overhead cost applied to Work in Process $41,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
Garrison 17e Rechecks 2020-12-17
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42) Baab Corporation is a manufacturing firm that uses job-order costing. The company’s
inventory balances were as follows at the beginning and end of the year:
Beginning Balance Ending Balance
Raw materials $14,000 $22,000
Work in process $27,000 $ 9,000
Finished Goods $62,000 $77,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-
hours. At the beginning of the year, the company estimated that it would work 33,000 machine-
hours and incur $231,000 in manufacturing overhead cost. The following transactions were
recorded for the year: ● Raw materials were purchased, $315,000.
● Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and
$26,000 indirect).
● The following employee costs were incurred: direct labor, $377,000; indirect labor, $96,000;
and administrative salaries, $172,000.
● Selling costs, $147,000.
● Factory utility costs, $10,000.
● Depreciation for the year was $127,000 of which $120,000 is related to factory operations
and $7,000 is related to selling, general, and administrative activities.
● Manufacturing overhead was applied to jobs. The actual level of activity for the year was
34,000 machine-hours.
● Sales for the year totaled $1,253,000.
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Was the overhead underapplied or overapplied? By how much?
c. Prepare an income statement for the year. The company closes any underapplied or
overapplied overhead to Cost of Goods Sold.
Garrison 17e Rechecks 2020-12-17
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43) Rieb Incorporated has provided the following data for the month of September. 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 $ 3,680 $ 8,760 $ 47,280 $ 59,720
Direct labor 9,840 24,090 130,020 163,950
Manufacturing overhead applied 6,160 10,780 60,060 77,000
Total $19,680 $43,630 $237,360 $300,670
Manufacturing overhead for the month was overapplied by $7,000.
The company allocates any underapplied or overapplied 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.
Required:
Provide the journal entry that would record the allocation of underapplied or overapplied
among work in process, finished goods, and cost of goods sold.
44) Stangl Incorporated has provided the following data for the month of September. 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 $ 1,480 $ 7,410 $14,430 $ 23,320
Direct labor 5,280 17,670 34,410 57,360
Manufacturing overhead applied 3,770 8,700 16,530 29,000
Total $10,530 $33,780 $65,370 $109,680
Manufacturing overhead for the month was underapplied by $3,000.
The company allocates any underapplied or overapplied 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.
Required:
Determine the cost of work in process, finished goods, and cost of goods sold AFTER
allocation of the underapplied or overapplied overhead for the period.
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45) Which of the following statements is true?
1. Overhead can be applied slowly as a job is worked on.
2. Overhead can be applied when the job is completed.
3. Overhead should be applied to any job not completed at year-end in order to properly value
the work in process inventory.
A) Only statement I is true.
B) Only statement II is true.
C) Both statements I and II are true.
D) Statements I, II, and III are all true.
46) In a job-order costing system, indirect labor cost is usually recorded as a debit to:
A) Manufacturing Overhead.
B) Finished Goods.
C) Work in Process.
D) Cost of Goods Sold.
47) In a job-order costing system, manufacturing overhead applied is recorded as a debit to:
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A) Raw Materials inventory.
B) Finished Goods inventory.
C) Work in Process inventory.
D) Cost of Goods Sold.
48) In a job-order costing system, which of the following events would trigger recording data
on a job cost sheet?
A) the purchase of direct materials
B) the payment of fire insurance on the factory building
C) the payment for product advertising
D) none of the choices
49) The journal entry to record applying overhead during the production process is:
A)
Debit Credit
Manufacturing Overhead XXX
Work in Process XXX
B)
Debit Credit
Finished Goods XXX
Manufacturing Overhead XXX
C)
Debit Credit
Manufacturing Overhead XXX
Finished Goods XXX
D)
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Debit Credit
Work in Process XXX
Manufacturing Overhead XXX
50) Refer to the T-account below:
Manufacturing Overhead
Debit Credit
(2) 9,000 (12) 167,000
(3) 15,000
(4) 80,000
(5) 30,000
(6) 25,000
159,000 167,000
Balance 8,000
The ending balance of $8,000 represents which of the following?
A) Underapplied overhead.
B) Manufacturing overhead that will be carried over to the next period.
C) Overapplied overhead.
D) A bookkeeping error.
51) Refer to the T-account below:
Raw Materials
Debit Credit
Balance 15,000 (9) 75,000
(5) 85,000
Balance 25,000
Entry (5) could represent which of the following?
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A) Payments for raw materials.
B) Requisitions of raw materials to be used in production.
C) Purchases of raw materials.
D) Overhead cost applied to Work in Process.
52) Refer to the T-account below:
Prepaid Insurance
Debit Credit
Balance 30,000 (8) 9,000
Entry (8) could represent which of the following?
A) Payment of insurance for the upcoming period.
B) Insurance cost incurred on the factory which is added to the Manufacturing Overhead
account.
C) Overhead cost applied to Work in Process.
D) Overhead cost applied to Finished Goods.
53) When manufacturing overhead is applied to production, it is added to:
A) the Cost of Goods Sold account.
B) the Raw Materials account.
C) the Work in Process account.
D) the Finished Goods inventory account.
54) Under a job-order costing system, the dollar amount transferred from Work in Process to
Finished Goods is the sum of the costs charged to all jobs:
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A) started in process during the period.
B) in process during the period.
C) completed and sold during the period.
D) completed during the period.
55) Refer to the T-account below:
Manufacturing Overhead
Debit Credit
(2) 4,000 (9) 150,000
(3) 15,000
(4) 80,000
(5) 30,000
(6) 25,000
154,000 150,000
Balance 4,000
Entry (4) could represent which of the following except?
A) Indirect labor cost incurred.
B) Factory insurance cost.
C) Overhead cost applied to Work in Process.
D) Depreciation on factory equipment.
56) Refer to the T-account below:
Work In Process
Debit Credit
Balance 30,000 (12) 270,000
(4) 90,000
(6) 70,000
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(9) 110,000
Balance 30,000
Entry (12) could represent which of the following?
A) Direct labor cost incurred in production.
B) Purchases of raw materials.
C) The cost of goods manufactured transferred to Finished Goods.
D) The cost of indirect materials incurred in production.
57) In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the “Total raw
materials available” is computed by adding together the “Beginning raw materials inventory”
and:
A) Ending raw materials inventory
B) Raw materials used in production
C) Purchases of raw materials
D) Indirect materials included in manufacturing overhead
58) In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of
goods manufactured is computed according to which of the following equations?
A) Cost of goods manufactured = Total manufacturing costs + Ending work in process
inventory − Beginning work in process inventory
B) Cost of goods manufactured = Total manufacturing costs + Beginning work in
process inventory − Ending work in process inventory
C) Cost of goods manufactured = Total manufacturing costs + Beginning finished goods
inventory − Ending finished goods inventory
D) Cost of goods manufactured = Total manufacturing costs + Ending finished goods
inventory − Beginning finished goods inventory
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59) When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the
following would be true?
A) Work in Process will decrease.
B) Cost of Goods Sold will increase.
C) Net income will decrease.
D) Gross margin will increase.
60) If manufacturing overhead is underapplied, then:
A) actual manufacturing overhead cost is less than estimated manufacturing overhead
cost.
B) the amount of manufacturing overhead cost applied to Work in Process is less than
the actual manufacturing overhead cost incurred.
C) the predetermined overhead rate is too high.
D) the Manufacturing Overhead account will have a credit balance at the end of the
year.
61) Overapplied manufacturing overhead would result if:
A) the plant was operated at less than normal capacity.
B) manufacturing overhead costs incurred were less than estimated manufacturing
overhead costs.
C) manufacturing overhead costs incurred were less than manufacturing overhead costs
charged to production.
D) manufacturing overhead costs incurred were greater than manufacturing overhead
costs charged to production.
62) During July at Loeb Corporation, $83,000 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 $4,000. The journal entry to record the requisition from the
storeroom would include a:
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A) debit to Work in Process of $79,000
B) debit to Work in Process of $83,000
C) credit to Manufacturing Overhead of $4,000
D) debit to Raw Materials of $83,000
63) Gullett Corporation had $32,000 of raw materials on hand on November 1. During the
month, the Corporation purchased an additional $81,000 of raw materials. The journal entry to
record the purchase of raw materials would include a:
A) debit to Raw Materials of $113,000
B) credit to Raw Materials of $81,000
C) debit to Raw Materials of $81,000
D) credit to Raw Materials of $113,000
64) Gullett Corporation had $26,000 of raw materials on hand on November 1. During the
month, the Corporation purchased an additional $75,000 of raw materials. The journal entry to
record the purchase of raw materials would include a:
A) debit to Raw Materials of $101,000
B) credit to Raw Materials of $75,000
C) debit to Raw Materials of $75,000
D) credit to Raw Materials of $101,000
65) Gallon Corporation had $24,000 of raw materials on hand on April 1. During the month,
the Corporation purchased an additional $52,000 of raw materials. During April, $62,000 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 $2,000. The debits to
the Work in Process account as a consequence of the raw materials transactions in April total:
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A) $60,000
B) $62,000
C) $0
D) $52,000
66) Farrel Corporation is a manufacturer that uses job-order costing. The company has
supplied the following data for the just completed year:
Direct labor cost $574,000
Manufacturing overhead:
Indirect labor cost $163,000
Other manufacturing overhead costs incurred $584,000
What is the journal entry to record the direct and indirect labor costs incurred during the year?
A)
Debit Credit
Wages Payable 737,000
Direct Labor 574,000
Manufacturing Overhead 163,000
B)
Debit Credit
Work in Process 574,000
Manufacturing Overhead 163,000
Wages Payable 737,000
C)
Debit Credit
Wages Payable 737,000
Work in Process 574,000
Manufacturing Overhead 163,000
D)
Debit Credit
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Direct Labor 574,000
Manufacturing Overhead 163,000
Wages Payable 737,000
67) Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during
June. During the same period, the Manufacturing Overhead applied to Work in Process was
$92,000. The journal entry to record the application of Manufacturing Overhead to Work in
Process would include a:
A) debit to Manufacturing Overhead of $92,000
B) debit to Work in Process of $90,000
C) credit to Manufacturing Overhead of $92,000
D) credit to Work in Process of $90,000
68) Lister 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:
Estimated total manufacturing overhead at the beginning of the year
$ 624,000
Estimated direct labor-hours at the beginning of the year 39,000
direct labor-hours
Results of operations:
Actual direct labor-hours 36,000 direct labor-hours
Manufacturing Overhead :
Indirect labor cost $ 131,000
Other manufacturing overhead costs incurred $ 543,000
The total amount of manufacturing overhead applied to production is:
A) $1,547,000
B) $576,000
C) $624,000
D) $674,000
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69) Leelanau Corporation uses a job-order costing system. The following data are for last
year:
Work in process beginning balance $ 10,500
Work in process ending balance $ 19,000
Cost of goods manufactured $ 323,000
Direct materials $ 115,000
Direct Labor $ 78,000
Leelanau applies overhead using a predetermined rate. What amount of overhead was applied to
work in process last year?
A) $138,500
B) $121,500
C) $130,000
D) $203,500
70) During March, Zea Incorporated transferred $64,000 from Work in Process to Finished
Goods and recorded a Cost of Goods Sold of $70,000. The journal entries to record these
transactions would include a:
A) credit to Cost of Goods Sold of $70,000.
B) debit to Finished Goods of $70,000.
C) credit to Work in Process of $64,000.
D) credit to Finished Goods of $64,000.
71) During March, Zea Incorporated transferred $50,000 from Work in Process to Finished
Goods and recorded a Cost of Goods Sold of $56,000. The journal entries to record these
transactions would include a:
A) credit to Cost of Goods Sold of $56,000.
B) debit to Finished Goods of $56,000.
C) credit to Work in Process of $50,000.
D) credit to Finished Goods of $50,000.
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72) Firlit Corporation incurred $69,000 of actual Manufacturing Overhead costs during
October. During the same period, the Manufacturing Overhead applied to Work in Process was
$70,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs
would include a:
A) debit to Work in Process of $70,000
B) credit to Work in Process of $70,000
C) debit to Manufacturing Overhead of $69,000
D) credit to Manufacturing Overhead of $69,000
73) Brendal Corporation is a manufacturer that uses job-order costing. The company has
supplied the following data for the just completed year:
Estimated total manufacturing overhead at the beginning of the year
$ 693,000
Estimated direct labor-hours at the beginning of the year 42,000
direct labor-hours
Results of operations:
Raw materials (all direct) requisitioned for use in production $
525,000
Direct labor cost $ 690,000
Actual direct labor-hours 49,000 direct labor-hours
Manufacturing Overhead
Indirect labor cost $ 138,000
Other manufacturing overhead costs incurred $ 506,000
How much is the total manufacturing cost added to Work in Process during the year?
A) $1,215,000
B) $1,803,000
C) $1,498,500
D) $2,023,500
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74) Firebaugh 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 $520,000
Raw materials (all direct) requisitioned for use in production
$467,000
What is the journal entry to record raw materials used in production?
A)
Debit Credit
Raw Materials 520,000
Work in Process 520,000
B)
Debit Credit
Raw Materials 467,000
Work in Process 467,000
C)
Debit Credit
Work in Process 520,000
Raw Materials 520,000
D)
Debit Credit
Work in Process 467,000
Raw Materials 467,000
75) On December 1, Mogro Corporation had $26,000 of raw materials on hand. During the
month, the Corporation purchased an additional $60,000 of raw materials. During December,
$62,000 of raw materials were requisitioned from the storeroom for use in production. The debits
entered in the Raw Materials account during the month of December total:
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A) $26,000
B) $86,000
C) $60,000
D) $62,000
76) In October, Raddatz Incorporated incurred $73,000 of direct labor costs and $6,000 of
indirect labor costs. The journal entry to record the accrual of these wages would include a:
A) debit to Manufacturing Overhead of $6,000
B) debit to Work in Process of $79,000
C) credit to Manufacturing Overhead of $6,000
D) credit to Work in Process of $79,000
77) During June, Buttrey Corporation incurred $85,000 of direct labor costs and $25,000 of
indirect labor costs. The journal entry to record the accrual of these wages would include a:
A) debit to Work in Process of $85,000.
B) credit to Work in Process of $110,000.
C) debit to Work in Process of $110,000.
D) credit to Work in Process of $85,000.
78) During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7,000 of
indirect labor costs. The journal entry to record the accrual of these wages would include a:
A) debit to Work in Process of $67,000.
B) credit to Work in Process of $74,000.
C) debit to Work in Process of $74,000.
D) credit to Work in Process of $67,000.
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79) At the beginning of December, Altro Corporation had $26,000 of raw materials on hand.
During the month, the Corporation purchased an additional $76,000 of raw materials. During
December, $72,000 of raw materials were requisitioned from the storeroom for use in
production. The credits entered in the Raw Materials account during the month of December
total:
A) $26,000
B) $102,000
C) $76,000
D) $72,000
80) During September at Renfro Corporation, $65,000 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 $4,000. The journal entry to record this requisition
would include a debit to Manufacturing Overhead of:
A) $65,000
B) $4,000
C) $0
D) $61,000
81) Tomlison Corporation is a manufacturer that uses job-order costing. The company has
supplied the following data for the just completed year:
Cost of goods manufactured $1,589,000
Cost of goods sold (unadjusted) $1,517,000
The journal entry to record the unadjusted Cost of Goods Sold is:
A)
Debit Credit
Finished Goods 1,517,000
Cost of Goods Sold 1,517,000
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B)
Debit Credit
Cost of Goods Sold 1,517,000
Finished Goods 1,517,000
C)
Debit Credit
Finished Goods 1,589,000
Cost of Goods Sold 1,589,000
D)
Debit Credit
Cost of Goods Sold 1,589,000
Finished Goods 1,589,000
82) Ruddick Corporation is a manufacturer that uses job-order costing. The company has
supplied the following data for the just completed year:
Cost of goods manufactured $1,486,000
Cost of goods sold (unadjusted) $1,337,000
The journal entry to record the transfer of completed goods from Work in Process to Finished
Goods is:
A)
Debit Credit
Finished Goods 1,337,000
Work in Process 1,337,000
B)
Debit Credit
Finished Goods 1,486,000
Work in Process 1,486,000
C)
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Debit Credit
Work in Process 1,337,000
Finished Goods 1,337,000
D)
Debit Credit
Work in Process 1,486,000
Finished Goods 1,486,000
83) Calfee 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 $ 40,000
Work in process $ 19,000
Estimated total manufacturing overhead at the beginning of the year
$ 595,000
Estimated direct labor-hours at the beginning of the year 35,000
direct labor-hours
Results of operations:
Raw materials purchased on account $ 423,000
Raw materials (all direct) requisitioned for use in production $
420,000
Direct labor cost $ 641,000
Actual direct labor-hours 33,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 143,000
Other manufacturing overhead costs incurred $ 531,000
Cost of goods manufactured $ 1,441,000
The ending balance in the Work in Process inventory account is:
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A) $200,000
B) $162,000
C) $220,000
D) $181,000
84) Tusa 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:
Estimated total manufacturing overhead at the beginning of the year
$ 638,250
Estimated direct labor-hours at the beginning of the year 37,000
direct labor-hours
Results of operations:
Actual direct labor-hours 34,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 148,000
Other manufacturing overhead costs incurred $ 450,000
Cost of goods manufactured $ 1,611,000
Cost of goods sold (unadjusted) $ 1,518,000
The adjusted Cost of Goods Sold for the year is: (Do not round your intermediate
calculations.)
A) $1,518,000
B) $1,506,500
C) $1,642,000
D) $1,529,500
85) Plasencia 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:
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Finished goods $ 33,000
Estimated total manufacturing overhead at the beginning of the year
$635,500
Estimated direct labor-hours at the beginning of the year 41,000
direct labor-hours
Results of operations:
Actual direct labor-hours 42,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 177,000
Other manufacturing overhead costs incurred $ 444,000
Selling and administrative:
Selling and administrative salaries $ 280,000
Other selling and administrative expenses $ 310,000
Cost of goods manufactured $1,501,000
Sales revenue $2,704,000
Cost of goods sold (unadjusted) $1,416,000
The net operating income is: (Do not round your intermediate calculations.)
A) $1,318,000
B) $1,008,000
C) $728,000
D) $1,038,000
86) Molzahn 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:
Estimated total manufacturing overhead at the beginning of the year
$ 481,250
Estimated direct labor-hours at the beginning of the year 35,000
direct labor-hours
Results of operations:
Actual direct labor-hours 40,000 direct labor-hours
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Manufacturing overhead:
Indirect labor cost $ 179,000
Other manufacturing overhead costs incurred $ 465,000
Manufacturing overhead is overapplied or underapplied by: (Do not round your intermediate
calculations.)
A) $165,000 Overapplied
B) $94,000 Underapplied
C) $165,000 Underapplied
D) $94,000 Overapplied
87) Cai Corporation uses a job-order costing system and has provided the following partially
completed T-account summary for the past year.
Raw Materials
Debit Credit
Balance 1/1 17,000 Credits ?
Debits 97,000
Balance 12/31 30,000
Work In Process
Debit Credit
Balance 1/1 19,000 Credits 506,000
Direct materials 74,000
Direct labor 13,000
Overhead applied 257,000
Balance 12/31 ?
The cost of indirect materials requisitioned for use in production during the year was:
A) $74,000
B) $10,000
C) $40,000
D) $13,000
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88) The following accounts are from last year’s books at Sharp Manufacturing:
Raw Materials
Debit Credit
Balance 0 (b) 157,400
(a) 172,500
15,100
Work In Process
Debit Credit
Balance 0 (f) 523,600
(b) 133,700
(c) 171,400
(e) 218,500
0
Finished Goods
Debit Credit
Balance 0 (g) 477,000
(f) 523,600
46,600
Manufacturing Overhead
Debit Credit
(b) 23,700 (e) 218,500
(c) 27,700
(d) 159,400
7,700
Cost of Goods Sold
Debit Credit
(g) 477,000
Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor
costs. What is the manufacturing overhead overapplied or underapplied for the year?
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A) $7,700 underapplied
B) $7,700 overapplied
C) $27,700 underapplied
D) $27,700 overapplied
89) The following accounts are from last year’s books at Sharp Manufacturing:
Raw Materials
Debit Credit
Balance 0 (b) 154,000
(a) 164,000
10,000
Work In Process
Debit Credit
Balance 0 (f) 510,000
(b) 132,000
(c) 168,000
(e) 210,000
0
Finished Goods
Debit Credit
Balance 0 (g) 460,000
(f) 510,000
50,000
Manufacturing Overhead
Debit Credit
(b) 22,000 (e) 210,000
(c) 26,000
(d) 156,000
6,000
Cost of Goods Sold
Debit Credit
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(g) 460,000
Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor
costs. What is the manufacturing overhead overapplied or underapplied for the year?
A) $6,000 underapplied
B) $6,000 overapplied
C) $26,000 underapplied
D) $26,000 overapplied
90) Fisher Corporation uses a predetermined overhead rate based on direct labor cost to apply
manufacturing overhead to jobs. The following information about Fisher Corporation’s Work in
Process inventory account has been provided for the month of May:
May 1 balance $ 26,000
Debits During May:
Direct Materials $ 40,000
Direct Labor $ 50,000
Manufacturing Overhead $ 37,500
During the month, Fisher Corporation’s Work in Process inventory account was credited for
$120,500, which represented the Cost of Goods Manufactured for the month. Only one job
remained in process on May 31; this job had been charged with $9,600 of applied overhead cost.
The amount of direct materials cost in the unfinished job would be:
A) $10,600
B) $16,700
C) $12,800
D) $23,400
91) Tatar 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 $37,000
Work in process $15,000
Results of operations:
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Raw materials purchased on account $480,000
Raw materials (all direct) requisitioned for use in production
$434,000
How much is the ending balance in the Raw Materials inventory account?
A) $37,000
B) $120,000
C) $83,000
D) $517,000
92) Hougham Corporation uses a job-order costing system and has provided the following
partially completed T-account summary for the past year.
Raw Materials
Debit Credit
Balance 1/1 15,000 Credits ?
Debits 109,000
Balance 12/31 21,000
The cost of raw materials requisitioned for use in production during the year was:
A) $109,000
B) $145,000
C) $103,000
D) $124,000
93) The following accounts are from last year’s books of Sharp Manufacturing:
Raw Materials
Debit Credit
Balance 0 (b) 154,600
(a) 165,500
10,900
Work In Process
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Debit Credit
Balance 0 (f) 512,400
(b) 132,300
(c) 168,600
(e) 211,500
0
Finished Goods
Debit Credit
Balance 0 (g) 463,000
(f) 512,400
49,400
Manufacturing Overhead
Debit Credit
(b) 22,300 (e) 211,500
(c) 26,300
(d) 156,600
6,300
Cost of Goods Sold
Debit Credit
(g) 463,000
</div> Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct
labor costs. What is the amount of direct materials used for the year?
A) $165,500
B) $154,600
C) $132,300
D) $168,600
94) The following accounts are from last year’s books of Sharp Manufacturing:
Raw Materials
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Debit Credit
Balance 0 (b) 154,000
(a) 164,000
10,000
Work In Process
Debit Credit
Balance 0 (f) 510,000
(b) 132,000
(c) 168,000
(e) 210,000
0
Finished Goods
Debit Credit
Balance 0 (g) 460,000
(f) 510,000
50,000
Manufacturing Overhead
Debit Credit
(b) 22,000 (e) 210,000
(c) 26,000
(d) 156,000
6,000
Cost of Goods Sold
Debit Credit
(g) 460,000
</div> Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct
labor costs. What is the amount of direct materials used for the year?
A) $164,000
B) $154,000
C) $132,000
D) $168,000
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95) The following accounts are from last year’s books at Sharp Manufacturing:
Raw Materials
Debit Credit
Balance 0 (b) 156,400
(a) 170,000
13,600
Work In Process
Debit Credit
Balance 0 (f) 519,600
(b) 133,200
(c) 170,400
(e) 216,000
0
Finished Goods
Debit Credit
Balance 0 (g) 472,000
(f) 519,600
47,600
Manufacturing Overhead
Debit Credit
(b) 23,200 (e) 216,000
(c) 27,200
(d) 158,400
7,200
Cost of Goods Sold
Debit Credit
(g) 472,000
Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor
costs. What is the amount of cost of goods manufactured for the year?
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A) $256,200
B) $464,800
C) $519,600
D) $472,000
96) The following accounts are from last year’s books at Sharp Manufacturing:
Raw Materials
Debit Credit
Balance 0 (b) 154,000
(a) 164,000
10,000
Work In Process
Debit Credit
Balance 0 (f) 510,000
(b) 132,000
(c) 168,000
(e) 210,000
0
Finished Goods
Debit Credit
Balance 0 (g) 460,000
(f) 510,000
50,000
Manufacturing Overhead
Debit Credit
(b) 22,000 (e) 210,000
(c) 26,000
(d) 156,000
6,000
Cost of Goods Sold
Debit Credit
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(g) 460,000
Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor
costs. What is the amount of cost of goods manufactured for the year?
A) $252,000
B) $454,000
C) $510,000
D) $460,000
97) Solt Corporation uses a job-order costing system and has provided the following partially
completed T-account summary for the past year.
Finished Goods
Debit Credit
Balance 1/1 38,000 Credits ?
Debits ?
Balance 12/31 50,000
The Cost of Goods Manufactured for the year was $415,000. The unadjusted Cost of Goods Sold
for the year was:
A) $503,000
B) $415,000
C) $403,000
D) $453,000
98) Compute the amount of raw materials used during November if $32,000 of raw materials
were purchased during the month and if the inventories were as follows:
Inventories Balance November 1 Balance November 30
Raw materials $7,800 $4,400
Work in process $6,400 $7,900
Finished goods $10,400 $12,400
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A) $33,500
B) $31,900
C) $29,400
D) $35,400
99) Compute the amount of raw materials used during November if $30,000 of raw materials
were purchased during the month and if the inventories were as follows:
Inventories Balance November 1 Balance November 30
Raw materials $ 7,000 $ 4,000
Work in process $ 6,000 $ 7,500
Finished goods $ 10,000 $ 12,000
A) $31,500
B) $29,500
C) $27,000
D) $33,000
100) Maysonet Corporation uses a job-order costing system and has provided the following
partially completed T-account summary for the past year.
Work in Process
Debit Credit
Balance 1/1 18,000 Credits ?
Debits 520,000
Balance 12/31 34,000
The cost of completed jobs transferred from Work in Process to Finished Goods during the year
was:
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A) $520,000
B) $572,000
C) $538,000
D) $504,000
101) Saint Johns Corporation uses a job-order costing system and has provided the following
partially completed summary T-accounts for the just completed period:
Work In Process
Debit Credit
Balance 22,000 Credits 534,000
Direct materials 85,000
Direct labor 161,000
Overhead applied 273,000
Balance ?
Manufacturing Overhead
Debit Credit
Debits 200,000 Credits ?
Manufacturing overhead for the period was:
A) $7,000 Underapplied
B) $73,000 Underapplied
C) $73,000 Overapplied
D) $7,000 Overapplied
102) Tenneson Corporation’s cost of goods manufactured for the just completed month was
$151,000 and its inventories were as follows:
Beginning Ending
Work in process inventory $ 63,000 $ 66,000
Finished goods inventory $ 34,000 $ 48,000
How much was the cost of goods available for sale on the Schedule of Cost of Goods Sold?
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A) $137,000
B) $185,000
C) $151,000
D) $136,000
103) Shane Corporation has provided the following data concerning last month’s operations.
Direct materials $23,000
Direct labor $58,000
Manufacturing overhead applied to Work in Process $92,000
Beginning Ending
Work in process inventory $56,000 $69,000
Finished goods inventory $33,000 $36,000
How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $161,000
B) $157,000
C) $160,000
D) $193,000
104) Dipaola Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $26,000
Indirect materials included in manufacturing overhead $ 6,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $87,000
Overapplied overhead $ 6,000
Beginning Ending
Raw materials inventory $12,000 $18,000
Work in process inventory $46,000 $64,000
Finished goods inventory $31,000 $46,000
How much is the direct materials cost for the month on the Schedule of Cost of Goods
Manufactured?
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A) $38,000
B) $32,000
C) $14,000
D) $26,000
105) Emigh Corporation’s cost of goods manufactured for the just completed month was
$146,000 and its overhead was overapplied by $5,000. The beginning finished goods inventory
was $35,000 and the ending finished goods inventory was $37,000. The company closes out any
underapplied or overapplied manufacturing overhead to cost of goods sold. How much was the
adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $144,000
B) $146,000
C) $181,000
D) $139,000
106) Luebke Incorporated has provided the following data for the month of November. The
balance in the Finished Goods inventory account at the beginning of the month was $63,000 and
at the end of the month was $31,100. The cost of goods manufactured for the month was
$217,500. The actual manufacturing overhead cost incurred was $58,300 and the manufacturing
overhead cost applied to Work in Process was $62,400. The company closes out any
underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of
goods sold that would appear on the income statement for November is:
A) $245,300
B) $185,600
C) $249,400
D) $217,500
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107) Luebke Incorporated has provided the following data for the month of November. The
balance in the Finished Goods inventory account at the beginning of the month was $52,000 and
at the end of the month was $30,000. The cost of goods manufactured for the month was
$212,000. The actual manufacturing overhead cost incurred was $55,000 and the manufacturing
overhead cost applied to Work in Process was $58,000. The company closes out any
underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of
goods sold that would appear on the income statement for November is:
A) $231,000
B) $190,000
C) $234,000
D) $212,000
108) Able Corporation uses a job-order costing system. In reviewing its records at the end of
the year, the company has discovered that $2,000 of raw materials has been drawn from the
storeroom and used in the production of Job 110, but that no entry has been made in the
accounting records for the use of these materials. Job 110 has been completed but it is unsold at
year end. This error will cause:
A) Work in Process to be understated by $2,000 at year end.
B) Cost of Goods Manufactured to be overstated by $2,000 for the year.
C) Finished Goods to be understated by $2,000 at the end of the year.
D) Cost of Goods Sold to be overstated by $2,000 for the year.
109) Frankin Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $26,000
Indirect materials included in manufacturing overhead $ 6,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $97,000
Beginning Ending
Raw materials inventory $11,000 $17,000
Work in process inventory $52,000 $66,000
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How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods
Manufactured?
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A) $175,000
B) $221,000
C) $155,000
D) $169,000
110) Rediger Incorporated a manufacturing Corporation, has provided the following data for
the month of June. The balance in the Work in Process inventory account was $27,000 at the
beginning of the month and $19,500 at the end of the month. During the month, the Corporation
incurred direct materials cost of $56,000 and direct labor cost of $29,500. The actual
manufacturing overhead cost incurred was $53,500. The manufacturing overhead cost applied to
Work in Process was $52,000. The cost of goods manufactured for June was:
A) $146,500.
B) $145,000.
C) $137,500.
D) $139,000.
111) Rediger Incorporated a manufacturing Corporation, has provided the following data for
the month of June. The balance in the Work in Process inventory account was $22,000 at the
beginning of the month and $17,000 at the end of the month. During the month, the Corporation
incurred direct materials cost of $55,000 and direct labor cost of $28,000. The actual
manufacturing overhead cost incurred was $53,000. The manufacturing overhead cost applied to
Work in Process was $51,000. The cost of goods manufactured for June was:
A) $141,000.
B) $139,000.
C) $134,000.
D) $136,000.
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112) Bocchini Corporation has provided the following data concerning last month’s
operations.
Purchases of raw materials $35,000
Indirect materials included in manufacturing overhead $ 6,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $84,000
Beginning Ending
Raw materials inventory $14,000 $19,000
Work in process inventory $55,000 $58,000
Finished goods inventory $39,000 $37,000
How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?
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A) $165,000
B) $163,000
C) $169,000
D) $202,000
113) Borchardt Corporation has provided the following data concerning last month’s
operations.
Direct materials $29,000
Direct labor $58,000
Manufacturing overhead applied to Work in Process $82,000
Beginning Ending
Work in process inventory $66,000 $57,000
How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods
Manufactured?
A) $235,000
B) $178,000
C) $173,000
D) $169,000
114) Weyant Corporation has provided the following data concerning last month’s operations.
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Direct materials $18,000
Direct labor $58,000
Manufacturing overhead applied to Work in Process $75,000
Overapplied overhead $ 6,000
Beginning Ending
Raw materials inventory $13,000 $19,000
Work in process inventory $64,000 $74,000
Finished goods inventory $32,000 $40,000
The company closes out any underapplied or overapplied manufacturing overhead to cost of
goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $173,000
B) $127,000
C) $133,000
D) $141,000
115) Bottum Corporation, a manufacturing Corporation, has provided data concerning its
operations for May. The beginning balance in the raw materials account was $20,500 and the
ending balance was $37,000. Raw materials purchases during the month totaled $64,000.
Manufacturing overhead cost incurred during the month was $111,500, of which $2,100
consisted of raw materials classified as indirect materials. The direct materials cost for May was:
A) $64,000
B) $47,500
C) $80,500
D) $45,400
116) Bottum Corporation, a manufacturing Corporation, has provided data concerning its
operations for May. The beginning balance in the raw materials account was $20,000 and the
ending balance was $36,000. Raw materials purchases during the month totaled $63,000.
Manufacturing overhead cost incurred during the month was $111,000, of which $2,000
consisted of raw materials classified as indirect materials. The direct materials cost for May was:
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A) $63,000
B) $47,000
C) $79,000
D) $45,000
117) Holmstrom Corporation has provided the following data concerning last month’s
operations.
Direct materials $ 14,000
Direct labor cost $ 58,000
Manufacturing overhead applied to Work in Process $ 79,000
Beginning Ending
Work in process inventory $ 47,000 $ 53,000
Finished goods inventory $ 41,000 $ 42,000
How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold?
A) $186,000
B) $145,000
C) $144,000
D) $138,000
118) Cienfuegos Corporation has provided the following data concerning last month’s
operations.
Purchases of raw materials $36,000
Indirect materials included in manufacturing overhead $4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $90,000
Overapplied overhead $3,000
Beginning Ending
Raw materials inventory $ 10,000 $ 21,000
Work in process inventory $ 62,000 $ 70,000
Finished goods inventory $ 36,000 $ 40,000
The company closes out any underapplied or overapplied manufacturing overhead to cost of
goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
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A) $157,000
B) $154,000
C) $161,000
D) $197,000
119) Haver Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $32,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $84,000
Beginning Ending
Raw materials inventory $ 10,000 $ 16,000
Work in process inventory $ 58,000 $ 74,000
Finished goods inventory $ 32,000 $ 49,000
How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold?
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A) $180,000
B) $148,000
C) $131,000
D) $134,000
120) Durphey Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $25,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $99,000
Beginning Ending
Raw materials inventory $ 11,000 $ 17,000
How much is the total manufacturing cost for the month on the Schedule of Cost of Goods
Manufactured?
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A) $176,000
B) $172,000
C) $152,000
D) $224,000
121) In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is
closed out to Cost of Goods Sold. Last year, the Corporation incurred $27,000 in actual
manufacturing overhead cost, and applied $29,000 of manufacturing overhead cost to jobs. The
beginning and ending balances of Finished Goods were equal, and the Corporation’s Cost of
Goods Manufactured for the year totaled $71,000. Given this information, Cost of Goods Sold,
after adjustment for any overapplied or underapplied manufacturing overhead, for the year must
have been:
A) $98,000
B) $73,000
C) $71,000
D) $69,000
122) Beshaw Incorporated 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 $ 3,440 $ 8,450 $ 61,880 $ 73,770
Direct labor 6,160 16,250 119,000 141,410
Manufacturing overhead applied 3,300 6,050 45,650 55,000
Total $12,900 $30,750 $226,530 $270,180
Manufacturing overhead for the month was underapplied 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 cost of goods sold for January after allocation of any underapplied or overapplied
manufacturing overhead for the month is closest to:
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A) $233,530
B) $220,720
C) $232,340
D) $219,530
123) Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the estimated direct labor-hours were 22,060 hours and the total estimated
manufacturing overhead was $560,324. At the end of the year, actual direct labor-hours for the
year were 22,000 hours and the actual manufacturing overhead for the year was $560,324.
Overhead at the end of the year was: (Do not round intermediate calculations.)
A) $1,574 overapplied
B) $1,574 underapplied
C) $1,524 underapplied
D) $1,524 overapplied
124) Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated
manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the
year were 21,500 hours and the actual manufacturing overhead for the year was $492,040.
Overhead at the end of the year was: (Do not round your intermediate calculations.)
A) $6,840 overapplied
B) $6,840 underapplied
C) $1,840 underapplied
D) $1,840 overapplied
125) Faughn Corporation has provided the following data concerning manufacturing overhead
for July:
Actual manufacturing overhead incurred $ 69,000
Manufacturing overhead applied to Work in Process $ 79,000
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The company’s Cost of Goods Sold was $243,000 prior to closing out its Manufacturing
Overhead account. The company closes out its Manufacturing Overhead account to Cost of
Goods Sold. Which of the following statements is true?
A) Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after
closing out the Manufacturing Overhead account is $233,000
B) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after
closing out the Manufacturing Overhead account is $233,000
C) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after
closing out the Manufacturing Overhead account is $253,000
D) Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after
closing out the Manufacturing Overhead account is $253,000
126) Braam Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the estimated direct labor-hours were 11,500 hours. At the end of the year,
actual direct labor-hours for the year were 9,700 hours, the actual manufacturing overhead for
the year was $143,350, and manufacturing overhead for the year was underapplied by $18,220.
The estimated manufacturing overhead at the beginning of the year used in the predetermined
overhead rate must have been: (Do not round your intermediate calculations.)
A) $164,023
B) $125,130
C) $148,350
D) $138,350
127) At the beginning of the year, manufacturing overhead for the year was estimated to be
$783,200. At the end of the year, actual direct labor-hours for the year were 36,260 hours, the
actual manufacturing overhead for the year was $760,000, and manufacturing overhead for the
year was overapplied by $37,720. If the predetermined overhead rate is based on direct labor-
hours, then the estimated direct labor-hours at the beginning of the year used in the
predetermined overhead rate must have been: (Do not round intermediate calculations.)
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A) 34,545 direct labor-hours
B) 35,600 direct labor-hours
C) 36,260 direct labor-hours
D) 32,831 direct labor-hours
128) At the beginning of the year, manufacturing overhead for the year was estimated to be
$670,700. At the end of the year, actual direct labor-hours for the year were 36,200 hours, the
actual manufacturing overhead for the year was $665,700, and manufacturing overhead for the
year was overapplied by $22,100. If the predetermined overhead rate is based on direct labor-
hours, then the estimated direct labor-hours at the beginning of the year used in the
predetermined overhead rate must have been:
A) 35,037 direct labor-hours
B) 35,300 direct labor-hours
C) 36,200 direct labor-hours
D) 33,874 direct labor-hours
129) Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-
hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual
costs and activity during the year were:
Actual manufacturing overhead cost incurred $38,000
Actual direct labor-hours worked 18,500
The overapplied or underapplied manufacturing for the year was:
A) $1,000 underapplied
B) $1,000 overapplied
C) $3,000 underapplied
D) $3,000 overapplied
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130) Bosshart Incorporated has provided the following data for the month of May. 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 $10,670 $12,000 $ 81,120 $103,790
Direct labor 11,630 15,000 101,400 128,030
Manufacturing overhead applied 9,680 9,680 68,640 88,000
Total $31,980 $36,680 $251,160 $319,820
Manufacturing overhead for the month was underapplied by $6,000.
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 journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for May would include the following:
A) credit to Work in Process of $31,980
B) credit to Work in Process of $660
C) debit to Work in Process of $31,980
D) debit to Work in Process of $660
131) Seuell Incorporated has provided the following data for the month of December. 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 $ 4,080 $18,630 $ 66,240 $ 88,950
Direct labor 5,380 24,300 86,400 116,080
Manufacturing overhead applied 3,780 13,230 45,990 63,000
Total $13,240 $56,160 $198,630 $268,030
Manufacturing overhead for the month was overapplied by $12,000.
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 journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for December would include the following:
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A) debit to Finished Goods of $56,160
B) credit to Finished Goods of $56,160
C) debit to Finished Goods of $2,520
D) credit to Finished Goods of $2,520
132) Weatherhead Incorporated has provided the following data for the month of March.
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 $ 4,240 $14,740 $ 41,540 $ 60,520
Direct labor 9,760 29,480 83,880 123,120
Manufacturing overhead applied 5,860 10,480 35,060 51,400
Total $19,860 $54,700 $160,480 $235,040
Manufacturing overhead for the month was overapplied by $4,900.
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 work in process inventory at the end of March after allocation of any underapplied or
overapplied manufacturing overhead for the month is closest to: (Round intermediate
percentage computations to the nearest whole percent.)
A) $19,392
B) $19,910
C) $19,981
D) $19,321
133) Weatherhead Incorporated has provided the following data for the month of March.
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 $ 4,170 $14,720 $ 41,920 $ 60,810
Direct labor 10,520 29,440 83,840 123,800
Manufacturing overhead applied 5,830 12,190 34,980 53,000
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Total $20,520 $56,350 $160,740 $237,610
Manufacturing overhead for the month was overapplied by $3,000.
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 work in process inventory at the end of March after allocation of any underapplied or
overapplied manufacturing overhead for the month is closest to:
A) $20,261
B) $20,779
C) $20,850
D) $20,190
134) Chipata Corporation applies manufacturing overhead to jobs on the basis of machine-
hours. Chipata estimated 25,000 machine-hours and $10,000 of manufacturing overhead cost for
the year. During the year, Chipata incurred 26,200 machine-hours and $11,300 of manufacturing
overhead. What was Chipata’s underapplied or overapplied overhead for the year?
A) $480 overapplied
B) $820 underapplied
C) $1,300 overapplied
D) $1,300 underapplied
135) Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the total estimated manufacturing overhead was $365,100. At the end of
the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for
the year was overapplied by $9,020, and the actual manufacturing overhead was $362,020. The
predetermined overhead rate for the year must have been closest to:
A) $15.59 per direct labor-hour
B) $15.46 per direct labor-hour
C) $15.21 per direct labor-hour
D) $15.08 per direct labor-hour
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136) Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the total estimated manufacturing overhead was $364,140. At the end of
the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for
the year was overapplied by $8,060, and the actual manufacturing overhead was $359,140. The
predetermined overhead rate for the year must have been closest to:
A) $15.43 per direct labor-hour
B) $15.30 per direct labor-hour
C) $15.17 per direct labor-hour
D) $14.96 per direct labor-hour
137) Pine Publishing Corporation uses a predetermined overhead rate based on direct labor-
hours to apply manufacturing overhead to jobs. At the beginning of the year the Corporation
estimated its total manufacturing overhead cost at $500,000 and its direct labor-hours at 125,000
hours. The actual overhead cost incurred during the year was $450,000 and the actual direct
labor-hours incurred on jobs during the year was 115,000 hours. The manufacturing overhead for
the year would be:
A) $10,000 underapplied
B) $10,000 overapplied
C) $50,000 underapplied
D) $50,000 overapplied
138) Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct
labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 56,500
actual direct labor-hours and incurred $372,000 of actual manufacturing overhead cost. The
Corporation had estimated that it would work 60,200 direct labor-hours during the year and incur
$343,140 of manufacturing overhead cost. The Corporation’s manufacturing overhead cost for
the year was:
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A) overapplied by $49,950
B) underapplied by $49,950
C) overapplied by $28,860
D) underapplied by $28,860
139) Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct
labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 56,000
actual direct labor-hours and incurred $352,000 of actual manufacturing overhead cost. The
Corporation had estimated that it would work 60,000 direct labor-hours during the year and incur
$330,000 of manufacturing overhead cost. The Corporation’s manufacturing overhead cost for
the year was:
A) overapplied by $44,000
B) underapplied by $44,000
C) overapplied by $22,000
D) underapplied by $22,000
140) Fils Incorporated has provided the following data for the month of March. 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 $4,080 $12,780 $ 59,940 $ 76,800
Direct labor 2,110 11,360 53,280 66,750
Manufacturing overhead applied 2,820 7,990 36,190 47,000
Total $9,010 $32,130 $149,410 $190,550
Manufacturing overhead for the month was underapplied by $4,000.
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 journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for March would include the following:
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A) debit to Cost of Goods Sold of $3,080
B) debit to Cost of Goods Sold of $149,410
C) credit to Cost of Goods Sold of $3,080
D) credit to Cost of Goods Sold of $149,410
141) Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply
manufacturing overhead to jobs. For the month of August, Karvel estimated total manufacturing
overhead costs at $300,000 and total machine-hours at 75,000 hours. Actual results for the period
were manufacturing overhead costs of $290,000 and 75,000 machine-hours. As a result, Karvel
would have:
A) applied more overhead to Work in Process than the actual amount of overhead cost
for the year.
B) applied less overhead to Work in Process than the actual amount of overhead cost for
the year.
C) applied an amount of overhead to Work in Process that was equal to the actual
amount of overhead.
D) found it necessary to recalculate the predetermined overhead rate.
142) Matthias Corporation has provided data concerning the Corporation’s Manufacturing
Overhead account for the month of May. 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 $107,000. Which of the following
statements is true?
A) Manufacturing overhead applied to Work in Process for the month was $107,000.
B) Manufacturing overhead for the month was underapplied by $35,000.
C) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold
during the month was $72,000.
D) Actual manufacturing overhead incurred during the month was $107,000.
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143) Matthias Corporation has provided data concerning the Corporation’s Manufacturing
Overhead account for the month of May. 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 $53,000 and the total of the credits to the account was $69,000. Which of the following
statements is true?
A) Manufacturing overhead applied to Work in Process for the month was $69,000.
B) Manufacturing overhead for the month was underapplied by $16,000.
C) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold
during the month was $53,000.
D) Actual manufacturing overhead incurred during the month was $69,000.
144) Darrow Corporation uses a predetermined overhead rate based on direct labor-hours to
apply manufacturing overhead to jobs. Last year, the Corporation worked 10,000 direct labor-
hours and incurred $80,000 of actual manufacturing overhead cost. If overhead was underapplied
by $2,000, the predetermined overhead rate for the Corporation for the year must have been:
A) $7.80 per direct labor-hour
B) $8.00 per direct labor-hour
C) $8.20 per direct labor-hour
D) $8.40 per direct labor-hour
145) Forbes Corporation uses a predetermined overhead rate based on direct labor-hours to
apply manufacturing overhead to jobs. At the beginning of the period, the Corporation estimated
manufacturing overhead would be $18,000 and direct labor-hours would be 15,000. The actual
figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours. The cost
records for the period will show:
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A) overapplied manufacturing overhead of $300
B) overapplied manufacturing overhead of $1,500
C) underapplied manufacturing overhead of $1,500
D) underapplied manufacturing overhead of $300
146) Rist Corporation uses a predetermined overhead rate based on machine-hours to apply
manufacturing overhead to jobs. The Corporation estimated that it would incur $255,000 in
manufacturing overhead during the year and that it would work 100,000 machine-hours. The
Corporation actually worked 105,000 machine-hours and incurred $270,000 in manufacturing
overhead costs. By how much was manufacturing overhead underapplied or overapplied for the
year?
A) $15,000 overapplied
B) $15,000 underapplied
C) $2,250 overapplied
D) $2,250 underapplied
147) The actual manufacturing overhead incurred at Gutekunst Corporation during March was
$53,000, while the manufacturing overhead applied to Work in Process was $73,000. The
Corporation’s Cost of Goods Sold was $451,000 prior to closing out its Manufacturing Overhead
account. The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold.
Which of the following statements is true?
A) Manufacturing overhead was overapplied by $20,000; Cost of Goods Sold after
closing out the Manufacturing Overhead account is $471,000
B) Manufacturing overhead was underapplied by $20,000; Cost of Goods Sold after
closing out the Manufacturing Overhead account is $431,000
C) Manufacturing overhead was overapplied by $20,000; Cost of Goods Sold after
closing out the Manufacturing Overhead account is $431,000
D) Manufacturing overhead was underapplied by $20,000; Cost of Goods Sold after
closing out the Manufacturing Overhead account is $471,000
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148) 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 $79,000 and the total of the credits to the account was $58,000. Which of
the following statements is true?
A) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold
during the month was $79,000.
B) Actual manufacturing overhead incurred during the month was $58,000.
C) Manufacturing overhead applied to Work in Process for the month was $79,000.
D) Manufacturing overhead for the month was underapplied by $21,000.
149) 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.
150) 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:
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A) overapplied by $8,000
B) underapplied by $8,000
C) overapplied by $1,000
D) underapplied by $1,000
151) Coatney Incorporated 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
152) 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?
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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.
153) 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
154) 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
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155) 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
156) 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
157) On November 1, Arvelo Corporation had $34,000 of raw materials on hand. During the
month, the company purchased an additional $76,000 of raw materials. During November,
$91,000 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 $3,400.
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:
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A) $91,000
B) $76,000
C) $34,000
D) $110,000
158) 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
159) 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
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160) 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
161) 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
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162) 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
163) During March, Pendergraph Corporation incurred $76,000 of actual Manufacturing
Overhead costs. During the same period, the Manufacturing Overhead applied to Work in
Process was $78,000.
The journal entry to record the incurrence of the actual Manufacturing Overhead costs would
include a:
A) credit to Manufacturing Overhead of $76,000
B) credit to Work in Process of $78,000
C) debit to Work in Process of $78,000
D) debit to Manufacturing Overhead of $76,000
164) 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:
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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
165) During March, Pendergraph Corporation incurred $74,000 of actual Manufacturing
Overhead costs. During the same period, the Manufacturing Overhead applied to Work in
Process was $76,000.
The journal entry to record the application of Manufacturing Overhead to Work in Process
would include a:
A) credit to Manufacturing Overhead of $76,000
B) debit to Work in Process of $74,000
C) credit to Work in Process of $74,000
D) debit to Manufacturing Overhead of $76,000
166) 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
167) Tyare Corporation had the following inventory balances at the beginning and end of
May:
May 1 May 30
Raw materials $31,500 $42,000
Finished Goods $81,000 $78,000
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Work in Process $19,500 $17,424
During May, $64,500 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 420 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 $7,650 of direct materials cost. The Corporation incurred
$43,800 of actual manufacturing overhead cost during the month and applied $43,200 in
manufacturing overhead cost.
The raw materials purchased during May totaled:
A) $64,500
B) $78,576
C) $54,000
D) $75,000
168) 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
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169) Tyare Corporation had the following inventory balances at the beginning and end of
May:
May 1 May 30
Raw materials $32,500 $44,000
Finished Goods $82,000 $80,000
Work in Process $20,500 $17,578
During May, $65,500 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 440 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 $7,750 of direct materials cost. The Corporation incurred
$44,100 of actual manufacturing overhead cost during the month and applied $43,800 in
manufacturing overhead cost.
The direct materials cost in the May 1 Work in Process inventory account totaled:
A) $15,220
B) $8,620
C) $13,900
D) $6,600
170) 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:
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A) $9,900
B) $5,400
C) $9,000
D) $4,500
171) Tyare Corporation had the following inventory balances at the beginning and end of
May:
May 1 May 30
Raw materials $27,000 $33,000
Finished Goods $76,500 $69,000
Work in Process $15,000 $16,731
During May, $60,000 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 330 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 $7,200 of direct materials cost. The Corporation incurred
$42,450 of actual manufacturing overhead cost during the month and applied $40,500 in
manufacturing overhead cost.
The actual direct labor-hours worked during May totaled:
A) 2,830 hours
B) 3,538 hours
C) 3,375 hours
D) 3,960 hours
172) 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
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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
173) Tyare Corporation had the following inventory balances at the beginning and end of
May:
May 1 May 30
Raw materials $28,000 $35,000
Finished Goods $77,500 $71,000
Work in Process $16,000 $16,885
During May, $61,000 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 350 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 $7,300 of direct materials cost. The Corporation incurred
$42,750 of actual manufacturing overhead cost during the month and applied $41,100 in
manufacturing overhead cost.
The amount of direct labor cost in the May 30 Work in Process inventory was:
A) $4,260
B) $5,325
C) $4,975
D) $9,585
174) Tyare Corporation had the following inventory balances at the beginning and end of
May:
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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
175) 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
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176) 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 work in process inventory balance at the end of October?
A) $23,000
B) $30,500
C) $32,000
D) $43,000
177) 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)
Debit Credit
Work in Process 475,000
Raw Materials 475,000
B)
Debit Credit
Raw Materials 475,000
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Work in Process 475,000
C)
Debit Credit
Raw Materials 476,000
Work in Process 476,000
D)
Debit Credit
Work in Process 476,000
Raw Materials 476,000
178) 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)
Debit Credit
Work in Process 640,000
Manufacturing Overhead 174,000
Wages Payable 814,000
B)
Debit Credit
Wages Payable 814,000
Work in Process 640,000
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Manufacturing Overhead 174,000
C)
Debit Credit
Wages Payable 814,000
Direct Labor 640,000
Manufacturing Overhead 174,000
D)
Debit Credit
Direct Labor 640,000
Manufacturing Overhead 174,000
Wages Payable 814,000
179) 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)
Debit Credit
Finished Goods 1,672,500
Work in Process 1,672,500
B)
Debit Credit
Work in Process 1,469,000
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Finished Goods 1,469,000
C)
Debit Credit
Finished Goods 1,469,000
Work in Process 1,469,000
D)
Debit Credit
Work in Process 1,672,500
Finished Goods 1,672,500
180) 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)
Debit Credit
Cost of Goods Sold 1,430,000
Finished Goods 1,430,000
B)
Debit Credit
Finished Goods 1,469,000
Cost of Goods Sold 1,469,000
C)
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Debit Credit
Finished Goods 1,430,000
Cost of Goods Sold 1,430,000
D)
Debit Credit
Cost of Goods Sold 1,469,000
Finished Goods 1,469,000
181) 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?
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A) $97,000
B) $585,000
C) $47,000
D) $50,000
182) 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
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183) 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
184) 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
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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
185) 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?
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A) $960
B) $360
C) $528
D) $288
186) 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
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187) 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
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188) 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
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189) 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
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190) Heathcote 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:
Estimated total manufacturing overhead at the beginning of the year
$ 546,000
Estimated direct labor-hours at the beginning of the year 42,000
direct labor-hours
Results of operations:
Actual direct labor-hours 47,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 152,000
Other manufacturing overhead costs incurred $ 454,000
Cost of goods manufactured $ 1,569,000
Cost of goods sold (unadjusted) $ 1,458,000
The total amount of manufacturing overhead applied to production is:
A) $1,755,000
B) $546,000
C) $606,000
D) $611,000
191) Heathcote 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:
Estimated total manufacturing overhead at the beginning of the year
$ 546,000
Estimated direct labor-hours at the beginning of the year 42,000
direct labor-hours
Results of operations:
Actual direct labor-hours 47,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 152,000
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Other manufacturing overhead costs incurred $ 454,000
Cost of goods manufactured $ 1,569,000
Cost of goods sold (unadjusted) $ 1,458,000
Manufacturing overhead is overapplied or underapplied by:
A) $186,000 Underapplied
B) $5,000 Underapplied
C) $186,000 Overapplied
D) $5,000 Overapplied
192) Heathcote 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:
Estimated total manufacturing overhead at the beginning of the year
$ 546,000
Estimated direct labor-hours at the beginning of the year 42,000
direct labor-hours
Results of operations:
Actual direct labor-hours 47,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 152,000
Other manufacturing overhead costs incurred $ 454,000
Cost of goods manufactured $ 1,569,000
Cost of goods sold (unadjusted) $ 1,458,000
The adjusted Cost of Goods Sold for the year is:
A) $1,603,000
B) $1,458,000
C) $1,453,000
D) $1,463,000
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193) Echher 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 $218,000 and credited for $218,500. The ending balance in the Finished Goods
inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied
by $36,700.
The balance in the Finished Goods inventory account at the beginning of the year was:
A) $13,500
B) $36,700
C) $500
D) $13,000
194) Echher 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 $218,000 and credited for $218,500. The ending balance in the Finished Goods
inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied
by $36,700.
If the applied manufacturing overhead was $223,900, the actual manufacturing overhead cost
for the year was:
A) $200,700
B) $260,600
C) $200,200
D) $187,200
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195) Parker Corporation has a job-order costing system and uses a predetermined overhead
rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the
year, manufacturing overhead and direct labor-hours for the year were estimated at $50,000 and
20,000 hours, respectively. In June, Job #461 was completed. Materials costs on the job totaled
$4,000 and labor costs totaled $1,500 at $5 per hour. At the end of the year it was determined
that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual
manufacturing overhead costs.
If Job #461 contained 100 units, the unit product cost on the completed job cost sheet would
be:
A) $61.75
B) $62.50
C) $63.10
D) $55.00
196) Parker Corporation has a job-order costing system and uses a predetermined overhead
rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the
year, manufacturing overhead and direct labor-hours for the year were estimated at $50,000 and
20,000 hours, respectively. In June, Job #461 was completed. Materials costs on the job totaled
$4,000 and labor costs totaled $1,500 at $5 per hour. At the end of the year it was determined
that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual
manufacturing overhead costs.
The manufacturing overhead for the year was:
A) $6,000 overapplied
B) $10,000 overapplied
C) $10,000 underapplied
D) $4,000 underapplied
197) Acheson Corporation, which applies manufacturing overhead on the basis of machine-
hours, has provided the following data for its most recent year of operations.
Estimated manufacturing overhead $ 157,950
Estimated machine-hours 4,680
Actual manufacturing overhead $ 157,800
Actual machine-hours 4,940
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The estimates of the manufacturing overhead and of machine-hours were made at the beginning
of the year for the purpose of computing the company’s predetermined overhead rate for the year.
The predetermined overhead rate is closest to:
A) $31.94
B) $33.75
C) $33.72
D) $44.52
198) Acheson Corporation, which applies manufacturing overhead on the basis of machine-
hours, has provided the following data for its most recent year of operations.
Estimated manufacturing overhead $ 157,050
Estimated machine-hours 4,500
Actual manufacturing overhead $ 156,000
Actual machine-hours 4,580
The estimates of the manufacturing overhead and of machine-hours were made at the beginning
of the year for the purpose of computing the company’s predetermined overhead rate for the year.
The predetermined overhead rate is closest to:
A) $34.06
B) $34.90
C) $34.67
D) $35.52
199) Acheson Corporation, which applies manufacturing overhead on the basis of machine-
hours, has provided the following data for its most recent year of operations.
Estimated manufacturing overhead $ 157,550
Estimated machine-hours 4,600
Actual manufacturing overhead $ 157,000
Actual machine-hours 4,780
The estimates of the manufacturing overhead and of machine-hours were made at the beginning
of the year for the purpose of computing the company’s predetermined overhead rate for the year.
The applied manufacturing overhead for the year is closest to: (Round your intermediate
calculations to 2 decimal places.)
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A) $193,686
B) $157,023
C) $163,141
D) $163,715
200) Acheson Corporation, which applies manufacturing overhead on the basis of machine-
hours, has provided the following data for its most recent year of operations.
Estimated manufacturing overhead $ 157,050
Estimated machine-hours 4,500
Actual manufacturing overhead $ 156,000
Actual machine-hours 4,580
The estimates of the manufacturing overhead and of machine-hours were made at the beginning
of the year for the purpose of computing the company’s predetermined overhead rate for the year.
The applied manufacturing overhead for the year is closest to:
A) $162,682
B) $155,995
C) $158,789
D) $159,842
201) Acheson Corporation, which applies manufacturing overhead on the basis of machine-
hours, has provided the following data for its most recent year of operations.
Estimated manufacturing overhead $ 157,050
Estimated machine-hours 4,500
Actual manufacturing overhead $ 156,000
Actual machine-hours 4,580
The estimates of the manufacturing overhead and of machine-hours were made at the beginning
of the year for the purpose of computing the company’s predetermined overhead rate for the year.
The overhead for the year was:
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A) $2,792 underapplied
B) $3,842 overapplied
C) $2,792 overapplied
D) $3,842 underapplied
202) Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the
beginning of the most recent year, the company based its predetermined overhead rate on total
estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to
$25,000 and actual machine-hours were 1,460. The company’s predetermined overhead rate for
the year was $11.90 per machine-hour.
The predetermined overhead rate was based on how many estimated machine-hours?
A) 1,400
B) 2,101
C) 2,742
D) 1,460
203) Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the
beginning of the most recent year, the company based its predetermined overhead rate on total
estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to
$25,000 and actual machine-hours were 1,460. The company’s predetermined overhead rate for
the year was $11.90 per machine-hour.
The applied manufacturing overhead for the year was closest to:
A) $26,071
B) $18,119
C) $17,374
D) $16,660
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204) Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the
beginning of the most recent year, the company based its predetermined overhead rate on total
estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to
$25,000 and actual machine-hours were 1,460. The company’s predetermined overhead rate for
the year was $11.90 per machine-hour.
The overhead for the year was:
A) $714 overapplied
B) $7,626 underapplied
C) $714 underapplied
D) $7,626 overapplied
205) Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At
the beginning of the most recent year, the company based its predetermined overhead rate on
total estimated overhead of $240,100 and 4,710 estimated direct labor-hours. Actual
manufacturing overhead for the year amounted to $243,000 and actual direct labor-hours were
4,610.
The predetermined overhead rate for the year was closest to:
A) $52.71
B) $49.89
C) $50.98
D) $51.59
206) Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At
the beginning of the most recent year, the company based its predetermined overhead rate on
total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual
manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were
4,600.
The predetermined overhead rate for the year was closest to:
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A) $52.61
B) $49.91
C) $51.00
D) $51.49
207) Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At
the beginning of the most recent year, the company based its predetermined overhead rate on
total estimated overhead of $243,300 and 8,300 estimated direct labor-hours. Actual
manufacturing overhead for the year amounted to $244,400 and actual direct labor-hours were
5,800.
The applied manufacturing overhead for the year was closest to: (Round your intermediate
calculations to 2 decimal places.)
A) $290,174
B) $169,998
C) $244,412
D) $170,810
208) Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At
the beginning of the most recent year, the company based its predetermined overhead rate on
total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual
manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were
4,600.
The applied manufacturing overhead for the year was closest to:
A) $229,586
B) $234,600
C) $242,006
D) $236,854
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209) Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At
the beginning of the most recent year, the company based its predetermined overhead rate on
total estimated overhead of $245,700 and 10,700 estimated direct labor-hours. Actual
manufacturing overhead for the year amounted to $246,000 and actual direct labor-hours were
6,600.
The overhead for the year was: (Round your intermediate calculations to 2 decimal places.)
A) $94,164 underapplied
B) $94,464 underapplied
C) $94,164 overapplied
D) $94,464 overapplied
210) Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At
the beginning of the most recent year, the company based its predetermined overhead rate on
total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual
manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were
4,600.
The overhead for the year was:
A) $5,100 underapplied
B) $7,400 underapplied
C) $5,100 overapplied
D) $7,400 overapplied
211) The following partially completed T-accounts are for Stanford Corporation:
Raw Materials
Debit Credit
Balance 7,000 (2) 24,000
(1) 19,000
Work In Process
Debit Credit
Balance 11,000 (7) ?
(2) 15,000
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(4) 18,000
(6) 31,000
Finished Goods
Debit Credit
Balance 18,000
(7) 62,000
15,000
Manufacturing Overhead
Debit Credit
(2) 9,000 (6) 31,000
(3) 16,000
(4) 8,000
(5) 5,000
Accumulated Depreciation–Factory
Debit Credit
Balance 82,000
(3) 16,000
Sales Salaries Expense
Debit Credit
(4) 11,000
Accounts Payable
Debit Credit
Balance
(1) 19,000
(5) 5,000
Salaries and Wages Payable
Debit Credit
Balance 7,000
(4) 37,000
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The indirect labor cost is:
A) $8,000
B) $15,000
C) $18,000
D) $37,000
212) The following partially completed T-accounts are for Stanford Corporation:
Raw Materials
Debit Credit
Balance 7,000 (2) 24,000
(1) 19,000
Work In Process
Debit Credit
Balance 11,000 (7) ?
(2) 15,000
(4) 18,000
(6) 31,000
Finished Goods
Debit Credit
Balance 18,000
(7) 62,000
15,000
Manufacturing Overhead
Debit Credit
(2) 9,000 (6) 31,000
(3) 16,000
(4) 8,000
(5) 5,000
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Accumulated Depreciation–Factory
Debit Credit
Balance 82,000
(3) 16,000
Sales Salaries Expense
Debit Credit
(4) 11,000
Accounts Payable
Debit Credit
Balance
(1) 19,000
(5) 5,000
Salaries and Wages Payable
Debit Credit
Balance 7,000
(4) 37,000
The cost of goods manufactured is:
A) $82,000
B) $64,000
C) $71,000
D) $62,000
213) The following partially completed T-accounts are for Stanford Corporation:
Raw Materials
Debit Credit
Balance 7,000 (2) 24,000
(1) 19,000
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Work In Process
Debit Credit
Balance 11,000 (7) ?
(2) 15,000
(4) 18,000
(6) 31,000
Finished Goods
Debit Credit
Balance 18,000
(7) 62,000
15,000
Manufacturing Overhead
Debit Credit
(2) 9,000 (6) 31,000
(3) 16,000
(4) 8,000
(5) 5,000
Accumulated Depreciation–Factory
Debit Credit
Balance 82,000
(3) 16,000
Sales Salaries Expense
Debit Credit
(4) 11,000
Accounts Payable
Debit Credit
Balance
(1) 19,000
(5) 5,000
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Salaries and Wages Payable
Debit Credit
Balance 7,000
(4) 37,000
The cost of goods sold (after adjustment for underapplied or overapplied manufacturing
overhead) is:
A) $58,000
B) $69,000
C) $72,000
D) $65,000
214) The following partially completed T-accounts are for Stanford Corporation:
Raw Materials
Debit Credit
Balance 7,000 (2) 24,000
(1) 19,000
Work In Process
Debit Credit
Balance 11,000 (7) ?
(2) 15,000
(4) 18,000
(6) 31,000
Finished Goods
Debit Credit
Balance 18,000
(7) 62,000
15,000
Manufacturing Overhead
Debit Credit
(2) 9,000 (6) 31,000
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(3) 16,000
(4) 8,000
(5) 5,000
Accumulated Depreciation–Factory
Debit Credit
Balance 82,000
(3) 16,000
Sales Salaries Expense
Debit Credit
(4) 11,000
Accounts Payable
Debit Credit
Balance
(1) 19,000
(5) 5,000
Salaries and Wages Payable
Debit Credit
Balance 7,000
(4) 37,000
The manufacturing overhead applied is:
A) $24,000
B) $31,000
C) $38,000
D) $42,000
215) The following partially completed T-accounts are for Stanford Corporation:
Version 1 125
Raw Materials
Debit Credit
Balance 7,000 (2) 24,000
(1) 19,000
Work In Process
Debit Credit
Balance 11,000 (7) ?
(2) 15,000
(4) 18,000
(6) 31,000
Finished Goods
Debit Credit
Balance 18,000
(7) 62,000
15,000
Manufacturing Overhead
Debit Credit
(2) 9,000 (6) 31,000
(3) 16,000
(4) 8,000
(5) 5,000
Accumulated Depreciation–Factory
Debit Credit
Balance 82,000
(3) 16,000
Sales Salaries Expense
Debit Credit
(4) 11,000
Accounts Payable
Debit Credit
Version 1 126
Balance
(1) 19,000
(5) 5,000
Salaries and Wages Payable
Debit Credit
Balance 7,000
(4) 37,000
The cost of direct materials used is:
A) $14,000
B) $15,000
C) $18,000
D) $24,000
216) The following partially completed T-accounts are for Stanford Corporation:
Raw Materials
Debit Credit
Balance 7,000 (2) 24,000
(1) 19,000
Work In Process
Debit Credit
Balance 11,000 (7) ?
(2) 15,000
(4) 18,000
(6) 31,000
Finished Goods
Debit Credit
Balance 18,000
(7) 62,000
Version 1 127
15,000
Manufacturing Overhead
Debit Credit
(2) 9,000 (6) 31,000
(3) 16,000
(4) 8,000
(5) 5,000
Accumulated Depreciation–Factory
Debit Credit
Balance 82,000
(3) 16,000
Sales Salaries Expense
Debit Credit
(4) 11,000
Accounts Payable
Debit Credit
Balance
(1) 19,000
(5) 5,000
Salaries and Wages Payable
Debit Credit
Balance 7,000
(4) 37,000
The ending Work in Process account balance would be:
A) $13,000
B) $75,000
C) $20,000
D) $64,000
Version 1 128
217) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Raw Materials
Debit Credit
Beginning Balance 5,000 9,000
5,200
Work in Process
Debit Credit
Beginning Balance 4,100 22,200
6,200
8,500
8,300
Finished Goods
Debit Credit
Beginning Balance 2,200 20,400
22,200
Manufacturing Overhead
Debit Credit
2,800 8,300
3,500
3,200
Wages & Salaries Payable
Debit Credit
20,400 Beginning Balance 2,500
12,000
Cost of Goods Sold
Debit Credit
Version 1 129
20,400
The Cost of Goods Manufactured was:
Garrison 17e Rechecks 2020-08-17
A) $20,400
B) $22,200
C) $42,600
D) $8,700
218) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Raw Materials
Debit Credit
Beginning Balance 4,500 8,000
4,700
Work in Process
Debit Credit
Beginning Balance 3,600 21,700
5,700
8,000
7,800
Finished Goods
Debit Credit
Beginning Balance 1,700 19,900
21,700
Manufacturing Overhead
Version 1 130
Debit Credit
2,300 7,800
3,000
2,700
Wages & Salaries Payable
Debit Credit
19,900 Beginning Balance 2,000
11,000
Cost of Goods Sold
Debit Credit
19,900
The Cost of Goods Manufactured was:
Garrison 17e Rechecks 2020-08-17
A) $19,900
B) $21,700
C) $41,600
D) $7,700
219) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Raw Materials
Debit Credit
Beginning Balance 4,950 8,900
5,150
Work in Process
Debit Credit
Version 1 131
Beginning Balance 4,050 22,150
6,150
8,450
8,250
Finished Goods
Debit Credit
Beginning Balance 2,150 20,350
22,150
Manufacturing Overhead
Debit Credit
2,750 8,250
3,450
3,150
Wages & Salaries Payable
Debit Credit
20,350 Beginning Balance 2,450
11,900
Cost of Goods Sold
Debit Credit
20,350
The direct labor cost was:
Garrison 17e Rechecks 2020-08-17
Version 1 132
A) $12,950
B) $20,350
C) $8,450
D) $11,450
220) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Raw Materials
Debit Credit
Beginning Balance 4,500 8,000
4,700
Work in Process
Debit Credit
Beginning Balance 3,600 21,700
5,700
8,000
7,800
Finished Goods
Debit Credit
Beginning Balance 1,700 19,900
21,700
Manufacturing Overhead
Debit Credit
2,300 7,800
3,000
2,700
Version 1 133
Wages & Salaries Payable
Debit Credit
19,900 Beginning Balance 2,000
11,000
Cost of Goods Sold
Debit Credit
19,900
The direct labor cost was:
Garrison 17e Rechecks 2020-08-17
A) $11,600
B) $19,900
C) $8,000
D) $11,000
221) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Raw Materials
Debit Credit
Beginning Balance 5,300 9,600
5,500
Work in Process
Debit Credit
Beginning Balance 4,400 22,500
6,500
8,800
8,600
Version 1 134
Finished Goods
Debit Credit
Beginning Balance 2,500 20,700
22,500
Manufacturing Overhead
Debit Credit
3,100 8,600
3,800
3,500
Wages & Salaries Payable
Debit Credit
20,700 Beginning Balance 2,800
12,600
Cost of Goods Sold
Debit Credit
20,700
The direct materials cost was:
Garrison 17e Rechecks 2020-08-17
A) $9,600
B) $6,500
C) $4,400
D) $5,500
222) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Raw Materials
Version 1 135
Debit Credit
Beginning Balance 4,500 8,000
4,700
Work in Process
Debit Credit
Beginning Balance 3,600 21,700
5,700
8,000
7,800
Finished Goods
Debit Credit
Beginning Balance 1,700 19,900
21,700
Manufacturing Overhead
Debit Credit
2,300 7,800
3,000
2,700
Wages & Salaries Payable
Debit Credit
19,900 Beginning Balance 2,000
11,000
Cost of Goods Sold
Debit Credit
19,900
Version 1 136
The direct materials cost was:
Garrison 17e Rechecks 2020-08-17
A) $8,000
B) $5,700
C) $3,600
D) $4,700
223) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Raw Materials
Debit Credit
Beginning Balance 4,900 8,800
5,100
Work in Process
Debit Credit
Beginning Balance 4,000 22,100
6,100
8,400
8,200
Finished Goods
Debit Credit
Beginning Balance 2,100 20,300
22,100
Manufacturing Overhead
Debit Credit
2,700 8,200
3,400
3,100
Version 1 137
Wages & Salaries Payable
Debit Credit
20,300 Beginning Balance 2,400
11,800
Cost of Goods Sold
Debit Credit
20,300
The manufacturing overhead applied was:
Garrison 17e Rechecks 2020-08-17
A) $3,100
B) $3,400
C) $8,200
D) $14,500
224) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Raw Materials
Debit Credit
Beginning Balance 4,500 8,000
4,700
Work in Process
Debit Credit
Beginning Balance 3,600 21,700
5,700
8,000
7,800
Version 1 138
Finished Goods
Debit Credit
Beginning Balance 1,700 19,900
21,700
Manufacturing Overhead
Debit Credit
2,300 7,800
3,000
2,700
Wages & Salaries Payable
Debit Credit
19,900 Beginning Balance 2,000
11,000
Cost of Goods Sold
Debit Credit
19,900
The manufacturing overhead applied was:
Garrison 17e Rechecks 2020-08-17
A) $2,700
B) $3,000
C) $7,800
D) $13,700
225) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Version 1 139
Raw Materials
Debit Credit
Beginning Balance 4,600 8,200
4,800
Work in Process
Debit Credit
Beginning Balance 3,700 21,800
5,800
8,100
7,900
Finished Goods
Debit Credit
Beginning Balance 1,800 20,000
21,800
Manufacturing Overhead
Debit Credit
2,400 7,900
3,100
2,800
Wages & Salaries Payable
Debit Credit
20,000 Beginning Balance 2,100
11,200
Cost of Goods Sold
Debit Credit
20,000
Version 1 140
The manufacturing overhead was:
Garrison 17e Rechecks 2020-08-17
A) $400 overapplied
B) $2,800 overapplied
C) $400 underapplied
D) $2,800 underapplied
226) The following partially completed T-accounts summarize transactions for Faaberg
Corporation during the year:
Raw Materials
Debit Credit
Beginning Balance 4,500 8,000
4,700
Work in Process
Debit Credit
Beginning Balance 3,600 21,700
5,700
8,000
7,800
Finished Goods
Debit Credit
Beginning Balance 1,700 19,900
21,700
Manufacturing Overhead
Debit Credit
2,300 7,800
3,000
2,700
Version 1 141
Wages & Salaries Payable
Debit Credit
19,900 Beginning Balance 2,000
11,000
Cost of Goods Sold
Debit Credit
19,900
The manufacturing overhead was:
Garrison 17e Rechecks 2020-08-17
A) $200 overapplied
B) $2,700 overapplied
C) $200 underapplied
D) $2,700 underapplied
227) Hardigree Corporation uses a job-order costing system. The following data relate to the
just completed month’s operations.
Beginning balance in Work in Process $ 36,000
(1) Raw materials purchased on account $207,000
(2) Direct materials requisitioned for use in production $161,000
(3) Indirect materials requisitioned for use in production $ 42,000
(4) Direct labor wages incurred $ 87,000
(5) Indirect labor wages incurred $101,000
(6) Depreciation recorded on factory equipment $ 42,000
(7) Additional manufacturing overhead costs incurred $ 57,000
(8) Manufacturing overhead costs applied to jobs $219,000
(9) Cost of jobs completed and transferred from Work in Process to
Finished Goods $403,000
The ending balance in the Work in Process account is closest to:
Version 1 142
A) $110,000
B) $120,000
C) $100,000
D) $90,000
228) Hardigree Corporation uses a job-order costing system.
Beginning balance in Work in Process $ 36,000
(1) Raw materials purchased on account $207,000
(2) Direct materials requisitioned for use in production $161,000
(3) Indirect materials requisitioned for use in production $ 42,000
(4) Direct labor wages incurred $ 87,000
(5) Indirect labor wages incurred $101,000
(6) Depreciation recorded on factory equipment $ 42,000
(7) Additional manufacturing overhead costs incurred $ 57,000
(8) Manufacturing overhead costs applied to jobs $219,000
(9) Cost of jobs completed and transferred from Work in Process to
Finished Goods $403,000
The total amount of manufacturing overhead actually incurred was:
A) $200,000
B) $284,000
C) $219,000
D) $242,000
229) Hardigree Corporation uses a job-order costing system. The following data relate to the
just completed month’s operations
Beginning balance in Work in Process $ 36,000
(1) Raw materials purchased on account $207,000
(2) Direct materials requisitioned for use in production $161,000
(3) Indirect materials requisitioned for use in production $ 42,000
(4) Direct labor wages incurred $ 87,000
(5) Indirect labor wages incurred $101,000
(6) Depreciation recorded on factory equipment $ 42,000
(7) Additional manufacturing overhead costs incurred $ 57,000
(8) Manufacturing overhead costs applied to jobs $219,000
Version 1 143
(9) Cost of jobs completed and transferred from Work in Process to
Finished Goods $403,000
The manufacturing overhead was:
A) $23,000 Overapplied
B) $23,000 Underapplied
C) $19,000 Overapplied
D) $19,000 Underapplied
230) The Tse Manufacturing Corporation uses a job-order costing system and applies
overhead to jobs using a predetermined overhead rate. The company closes any balance in the
Manufacturing Overhead account to Cost of Goods Sold. During the year the company’s
Finished Goods inventory account was debited for $125,000 and credited for $110,000. The
ending balance in the Finished Goods inventory account was $28,000. At the end of the year,
manufacturing overhead was overapplied by $4,500.
The balance in the Finished Goods inventory account at the beginning of the year was:
A) $28,000
B) $13,000
C) $17,500
D) $8,500
231) The Tse Manufacturing Corporation uses a job-order costing system and applies
overhead to jobs using a predetermined overhead rate. The company closes any balance in the
Manufacturing Overhead account to Cost of Goods Sold. During the year the company’s
Finished Goods inventory account was debited for $125,000 and credited for $110,000. The
ending balance in the Finished Goods inventory account was $28,000. At the end of the year,
manufacturing overhead was overapplied by $4,500.
If the estimated manufacturing overhead for the year was $24,000, and the applied overhead
was $26,500, the actual manufacturing overhead cost for the year was:
Version 1 144
A) $19,500
B) $22,000
C) $28,500
D) $31,000
232) Dagostino Corporation uses a job-order costing system. The following data relate to the
just completed month’s operations.
1. (1) Direct materials requisitioned for use in production, $154,000
2. (2) Indirect materials requisitioned for use in production, $45,000
3. (3) Direct labor wages incurred, $94,000
4. (4) Indirect labor wages incurred, $119,000
5. (5) Depreciation recorded on factory equipment, $44,000
6. (6) Additional manufacturing overhead costs incurred, $83,000
7. (7) Manufacturing overhead costs applied to jobs, $236,000
8. (8) Cost of jobs completed and transferred from Work in Process to Finished Goods,
$458,000
Use the following T-accounts to answer the following question.
Work In Process
Debit Credit
Balance $48,000
Version 1 145
Manufacturing Overhead
Debit Credit
The ending balance in the Work in Process account is closest to:
A) $94,000
B) $84,000
C) $74,000
D) $64,000
Version 1 146
233) Dagostino Corporation uses a job-order costing system.The following data relate to the
just completed month’s operations.
1. (1) Direct materials requisitioned for use in production, $154,000
2. (2) Indirect materials requisitioned for use in production, $45,000
3. (3) Direct labor wages incurred, $94,000
4. (4) Indirect labor wages incurred, $119,000
5. (5) Depreciation recorded on factory equipment, $44,000
6. (6) Additional manufacturing overhead costs incurred, $83,000
7. (7) Manufacturing overhead costs applied to jobs, $236,000
8. (8) Cost of jobs completed and transferred from Work in Process to Finished Goods,
$458,000
Use the following T-accounts to answer the following question.
Work In Process
Debit Credit
Balance $48,000
Manufacturing Overhead
Debit Credit
Version 1 147
The total amount of manufacturing overhead actually incurred was:
A) $246,000
B) $291,000
C) $236,000
D) $247,000
234) Dagostino Corporation uses a job-order costing system.The following data relate to the
just completed month’s operations.
1. (1) Direct materials requisitioned for use in production, $154,000
2. (2) Indirect materials requisitioned for use in production, $45,000
3. (3) Direct labor wages incurred, $94,000
4. (4) Indirect labor wages incurred, $119,000
5. (5) Depreciation recorded on factory equipment, $44,000
6. (6) Additional manufacturing overhead costs incurred, $83,000
7. (7) Manufacturing overhead costs applied to jobs, $236,000
8. (8) Cost of jobs completed and transferred from Work in Process to Finished Goods,
$458,000
Use the following T-accounts to answer the following question.
Work In Process
Debit Credit
Balance $48,000
Version 1 148
Manufacturing Overhead
Debit Credit
The manufacturing overhead was:
A) $10,000 Underapplied
B) $10,000 Overapplied
C) $55,000 Underapplied
D) $55,000 Overapplied
Version 1 149
235) Leak Enterprises LLC recorded the following transactions for the just completed month.
The company had no beginning inventories.
1. (1) Raw materials purchased for cash, $96,000
2. (2) Direct materials requisitioned for use in production, $69,000
3. (3) Indirect materials requisitioned for use in production, $22,000
4. (4) Direct labor wages incurred and paid, $129,000
5. (5) Indirect labor wages incurred and paid, $16,000
6. (6) Additional manufacturing overhead costs incurred and paid, $121,000
7. (7) Manufacturing overhead costs applied to jobs, $163,000
8. (8) All of the jobs in process were completed.
9. (9) All of the completed jobs were shipped to customers.
10. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of
Goods Sold.
11.
Use the following T-accounts to answer the following question.
Cash
Debit Credit
Raw Materials
Debit Credit
Version 1 150
Work In Process
Debit Credit
Finished Goods
Debit Credit
Manufacturing Overhead
Debit Credit
Cost of Goods Sold
Debit Credit
Version 1 151
The ending balance in the Raw Materials account is closest to:
A) $22,000
B) $5,000
C) $74,000
D) $27,000
236) Leak Enterprises LLC recorded the following transactions for the just completed month.
The company had no beginning inventories.
1. (1) Raw materials purchased for cash, $96,000
2. (2) Direct materials requisitioned for use in production, $69,000
3. (3) Indirect materials requisitioned for use in production, $22,000
4. (4) Direct labor wages incurred and paid, $129,000
5. (5) Indirect labor wages incurred and paid, $16,000
6. (6) Additional manufacturing overhead costs incurred and paid, $121,000
7. (7) Manufacturing overhead costs applied to jobs, $163,000
8. (8) All of the jobs in process were completed.
9. (9) All of the completed jobs were shipped to customers.
10. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of
Goods Sold.
11.
Use the following T-accounts to answer the following question.
Version 1 152
Cash
Debit Credit
Raw Materials
Debit Credit
Work In Process
Debit Credit
Finished Goods
Debit Credit
Manufacturing Overhead
Debit Credit
Version 1 153
Cost of Goods Sold
Debit Credit
The manufacturing overhead is:
A) $26,000 Underapplied
B) $4,000 Underapplied
C) $4,000 Overapplied
D) $26,000 Overapplied
Version 1 154
237) Leak Enterprises LLC recorded the following transactions for the just completed month.
The company had no beginning inventories.
1. (1) Raw materials purchased for cash, $96,000
2. (2) Direct materials requisitioned for use in production, $69,000
3. (3) Indirect materials requisitioned for use in production, $22,000
4. (4) Direct labor wages incurred and paid, $129,000
5. (5) Indirect labor wages incurred and paid, $16,000
6. (6) Additional manufacturing overhead costs incurred and paid, $121,000
7. (7) Manufacturing overhead costs applied to jobs, $163,000
8. (8) All of the jobs in process were completed.
9. (9) All of the completed jobs were shipped to customers.
10. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of
Goods Sold.
11.
Use the following T-accounts to answer the following question.
Cash
Debit Credit
Raw Materials
Debit Credit
Version 1 155
Work In Process
Debit Credit
Finished Goods
Debit Credit
Manufacturing Overhead
Debit Credit
Cost of Goods Sold
Debit Credit
Version 1 156
The adjusted cost of goods sold for the month is:
A) $335,000
B) $361,000
C) $357,000
D) $365,000
238) Gurtner Corporation has provided the following data concerning last month’s operations.
Cost of goods manufactured $170,000
Underapplied overhead $ 4,000
Beginning Ending
Finished goods inventory $33,000 $40,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold?
A) $203,000
B) $170,000
C) $167,000
D) $163,000
239) Gurtner Corporation has provided the following data concerning last month’s operations.
Cost of goods manufactured $170,000
Underapplied overhead $ 4,000
Beginning Ending
Finished goods inventory $33,000 $40,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?
Version 1 157
A) $203,000
B) $163,000
C) $170,000
D) $167,000
240) Gurtner Corporation has provided the following data concerning last month’s operations.
Cost of goods manufactured $170,000
Underapplied overhead $ 4,000
Beginning Ending
Finished goods inventory $33,000 $40,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $170,000
B) $167,000
C) $203,000
D) $163,000
241) Hunkins Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $33,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $91,000
Beginning Ending
Raw materials inventory $14,000 $20,000
Work in process inventory $57,000 $70,000
How much is the direct materials cost for the month on the Schedule of Cost of Goods
Manufactured?
A) $33,000
B) $39,000
C) $47,000
D) $23,000
Version 1 158
242) Hunkins Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $33,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $91,000
Beginning Ending
Raw materials inventory $14,000 $20,000
Work in process inventory $57,000 $70,000
How much is the total manufacturing cost for the month on the Schedule of Cost of Goods
Manufactured?
Garrison 17e Rechecks 2020-12-17
A) $159,000
B) $229,000
C) $172,000
D) $176,000
243) Hunkins Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $33,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $91,000
Beginning Ending
Raw materials inventory $14,000 $20,000
Work in process inventory $57,000 $70,000
How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods
Manufactured?
Garrison 17e Rechecks 2020-12-17
A) $229,000
B) $159,000
C) $172,000
D) $176,000
Version 1 159
244) Boursaw Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $33,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $78,000
Underapplied overhead $ 5,000
Beginning Ending
Raw materials inventory $10,000 $15,000
Work in process inventory $56,000 $72,000
Finished goods inventory $41,000 $49,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the direct materials cost for the month on the Schedule of Cost of Goods
Manufactured?
A) $38,000
B) $24,000
C) $33,000
D) $43,000
245) Boursaw Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $33,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $78,000
Underapplied overhead $ 5,000
Beginning Ending
Raw materials inventory $10,000 $15,000
Work in process inventory $56,000 $72,000
Finished goods inventory $41,000 $49,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the total manufacturing cost for the month on the Schedule of Cost of Goods
Manufactured?
Garrison 17e Rechecks 2020-12-17
Version 1 160
A) $144,000
B) $160,000
C) $216,000
D) $164,000
246) Boursaw Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $33,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $78,000
Underapplied overhead $ 5,000
Beginning Ending
Raw materials inventory $10,000 $15,000
Work in process inventory $56,000 $72,000
Finished goods inventory $41,000 $49,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods
Manufactured?
Garrison 17e Rechecks 2020-12-17
A) $216,000
B) $160,000
C) $144,000
D) $164,000
247) Boursaw Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $33,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $78,000
Underapplied overhead $ 5,000
Beginning Ending
Raw materials inventory $10,000 $15,000
Work in process inventory $56,000 $72,000
Finished goods inventory $41,000 $49,000
Version 1 161
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold?
Garrison 17e Rechecks 2020-12-17
A) $141,000
B) $185,000
C) $144,000
D) $136,000
248) Boursaw Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $33,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $78,000
Underapplied overhead $ 5,000
Beginning Ending
Raw materials inventory $10,000 $15,000
Work in process inventory $56,000 $72,000
Finished goods inventory $41,000 $49,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?
Garrison 17e Rechecks 2020-12-17
A) $136,000
B) $141,000
C) $144,000
D) $185,000
249) Boursaw Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials $33,000
Indirect materials included in manufacturing overhead $ 4,000
Direct labor cost $58,000
Manufacturing overhead applied to Work in Process $78,000
Underapplied overhead $ 5,000
Beginning Ending
Raw materials inventory $10,000 $15,000
Version 1 162
Work in process inventory $56,000 $72,000
Finished goods inventory $41,000 $49,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
Garrison 17e Rechecks 2020-12-17
A) $136,000
B) $185,000
C) $144,000
D) $141,000
250) Vogel Corporation’s cost of goods manufactured last month was $136,000. The
beginning finished goods inventory was $35,000 and the ending finished goods inventory was
$48,000. Overhead was overapplied by $6,000. Any underapplied or overapplied manufacturing
overhead is closed out to cost of goods sold.
How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold?
A) $171,000
B) $117,000
C) $123,000
D) $136,000
251) Vogel Corporation’s cost of goods manufactured last month was $136,000. The
beginning finished goods inventory was $35,000 and the ending finished goods inventory was
$48,000. Overhead was overapplied by $6,000. Any underapplied or overapplied manufacturing
overhead is closed out to cost of goods sold.
How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $123,000
B) $171,000
C) $136,000
D) $117,000
Version 1 163
252) Dacosta Corporation had only one job in process on May 1. The job had been charged
with $2,650 of direct materials, $6,990 of direct labor, and $10,174 of manufacturing overhead
cost. The company assigns overhead cost to jobs using the predetermined overhead rate of
$20.10 per direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $ 9,350
Purchased during the month $38,850
Used in production $40,150
Labor:
Direct labor-hours worked during the month 2,750
Direct labor cost incurred $25,360
Actual manufacturing overhead costs incurred $34,150
Inventories:
Raw materials, May 30 ?
Work in process, May 30 $17,158
Work in process inventory on May 30 contains $3,894 of direct labor cost. Raw materials consist
solely of items that are classified as direct materials.
The balance in the raw materials inventory account on May 30 was:
A) $8,050
B) $1,300
C) $29,500
D) $30,800
253) Dacosta Corporation had only one job in process on May 1. The job had been charged
with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead
cost. The company assigns overhead cost to jobs using the predetermined overhead rate of
$18.40 per direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $ 8,500
Purchased during the month $38,000
Used in production $39,300
Version 1 164
Labor:
Direct labor-hours worked during the month 1,900
Direct labor cost incurred $24,510
Actual manufacturing overhead costs incurred $33,300
Inventories:
Raw materials, May 30 ?
Work in process, May 30 $16,937
Work in process inventory on May 30 contains $3,741 of direct labor cost. Raw materials consist
solely of items that are classified as direct materials.
The balance in the raw materials inventory account on May 30 was:
A) $7,200
B) $1,300
C) $29,500
D) $30,800
254) Dacosta Corporation had only one job in process on May 1. The job had been charged
with $2,800 of direct materials, $6,966 of direct labor, and $10,216 of manufacturing overhead
cost. The company assigns overhead cost to jobs using the predetermined overhead rate of
$20.40 per direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $ 9,500
Purchased during the month $39,000
Used in production $40,300
Labor:
Direct labor-hours worked during the month 2,900
Direct labor cost incurred $25,510
Actual manufacturing overhead costs incurred $34,300
Inventories:
Raw materials, May 30 ?
Work in process, May 30 $17,197
Work in process inventory on May 30 contains $3,921 of direct labor cost. Raw materials consist
solely of items that are classified as direct materials.
The cost of goods manufactured for May was:
Version 1 165
A) $97,310
B) $110,800
C) $124,970
D) $127,755
255) Dacosta Corporation had only one job in process on May 1. The job had been charged
with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead
cost. The company assigns overhead cost to jobs using the predetermined overhead rate of
$18.40 per direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $ 8,500
Purchased during the month $38,000
Used in production $39,300
Labor:
Direct labor-hours worked during the month 1,900
Direct labor cost incurred $24,510
Actual manufacturing overhead costs incurred $33,300
Inventories:
Raw materials, May 30 ?
Work in process, May 30 $16,937
Work in process inventory on May 30 contains $3,741 of direct labor cost. Raw materials consist
solely of items that are classified as direct materials.
The cost of goods manufactured for May was:
A) $97,110
B) $110,600
C) $98,770
D) $100,535
Version 1 166
256) Dacosta Corporation had only one job in process on May 1. The job had been charged
with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead
cost. The company assigns overhead cost to jobs using the predetermined overhead rate of
$18.40 per direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $ 8,500
Purchased during the month $38,000
Used in production $39,300
Labor:
Direct labor-hours worked during the month 1,900
Direct labor cost incurred $24,510
Actual manufacturing overhead costs incurred $33,300
Inventories:
Raw materials, May 30 ?
Work in process, May 30 $16,937
Work in process inventory on May 30 contains $3,741 of direct labor cost. Raw materials consist
solely of items that are classified as direct materials.
The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the
month would include a:
A) credit of $5,336 to Manufacturing Overhead.
B) credit of $1,660 to Manufacturing Overhead.
C) debit of $5,336 to Manufacturing Overhead.
D) debit of $1,660 to Manufacturing Overhead.
257) Koczela Incorporated has provided the following data for the month of May:
Inventories:
Beginning Ending
Work in process $26,000 $21,000
Finished goods $55,000 $59,000
Additional information:
Direct materials $66,000
Direct labor cost $96,000
Manufacturing overhead cost incurred $72,000
Manufacturing overhead cost applied to Work in Process $70,000
Version 1 167
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The cost of goods manufactured for May is:
A) $232,000
B) $237,000
C) $234,000
D) $239,000
258) Koczela Incorporated has provided the following data for the month of May:
Inventories:
Beginning Ending
Work in process $17,000 $12,000
Finished goods $46,000 $50,000
Additional information:
Direct materials $57,000
Direct labor cost $87,000
Manufacturing overhead cost incurred $63,000
Manufacturing overhead cost applied to Work in Process $61,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The cost of goods manufactured for May is:
A) $205,000
B) $210,000
C) $207,000
D) $212,000
259) Koczela Incorporated has provided the following data for the month of May:
Inventories:
Beginning Ending
Work in process $17,000 $12,000
Finished goods $46,000 $50,000
Additional information:
Direct materials $57,000
Direct labor cost $87,000
Manufacturing overhead cost incurred $63,000
Version 1 168
Manufacturing overhead cost applied to Work in Process $61,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The adjusted cost of goods sold that appears on the income statement for May is:
A) $206,000
B) $214,000
C) $208,000
D) $210,000
260) Chavez Corporation reported the following data for the month of July:
Inventories:
Beginning Ending
Raw materials $28,000 $30,500
Work in process $16,500 $18,000
Finished goods $32,500 $47,500
Additional information:
Raw materials purchases $66,500
Direct labor cost $91,500
Manufacturing overhead cost incurred $59,500
Indirect materials included in manufacturing overhead cost incurred
$8,200
Manufacturing overhead cost applied to Work in Process $58,500
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The direct materials cost for July is:
A) $55,800
B) $69,000
C) $64,000
D) $66,500
261) Chavez Corporation reported the following data for the month of July:
Inventories:
Beginning Ending
Raw materials $27,000 $30,000
Work in process $16,000 $17,000
Finished goods $32,000 $47,000
Version 1 169
Additional information:
Raw materials purchases $66,000
Direct labor cost $91,000
Manufacturing overhead cost incurred $59,000
Indirect materials included in manufacturing overhead cost incurred
$ 8,000
Manufacturing overhead cost applied to Work in Process $58,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The direct materials cost for July is:
A) $55,000
B) $69,000
C) $63,000
D) $66,000
262) Chavez Corporation reported the following data for the month of July:
Inventories:
Beginning Ending
Raw materials $46,000 $39,500
Work in process $25,500 $36,000
Finished goods $41,500 $56,500
Additional information:
Raw materials purchases $75,500
Direct labor cost $100,500
Manufacturing overhead cost incurred $68,500
Indirect materials included in manufacturing overhead cost incurred
$11,800
Manufacturing overhead cost applied to Work in Process $67,500
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The cost of goods manufactured for July is:
Garrison 17e Rechecks 2020-12-17
A) $227,700
B) $249,200
C) $238,200
D) $250,200
Version 1 170
263) Chavez Corporation reported the following data for the month of July:
Inventories:
Beginning Ending
Raw materials $27,000 $30,000
Work in process $16,000 $17,000
Finished goods $32,000 $47,000
Additional information:
Raw materials purchases $66,000
Direct labor cost $91,000
Manufacturing overhead cost incurred $59,000
Indirect materials included in manufacturing overhead cost incurred
$ 8,000
Manufacturing overhead cost applied to Work in Process $58,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The cost of goods manufactured for July is:
Garrison 17e Rechecks 2020-12-17
A) $203,000
B) $215,000
C) $204,000
D) $216,000
264) Chavez Corporation reported the following data for the month of July:
Inventories:
Beginning Ending
Raw materials $27,000 $30,000
Work in process $16,000 $17,000
Finished goods $32,000 $47,000
Additional information:
Raw materials purchases $66,000
Direct labor cost $91,000
Manufacturing overhead cost incurred $59,000
Indirect materials included in manufacturing overhead cost incurred
$ 8,000
Manufacturing overhead cost applied to Work in Process $58,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The adjusted cost of goods sold that appears on the income statement for July is:
Garrison 17e Rechecks 2020-12-17
Version 1 171
A) $218,000
B) $188,000
C) $203,000
D) $189,000
265) Jaquish Incorporated 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 $2,440 $ 7,800 $ 37,900 $ 48,140
Direct labor 3,190 12,480 60,640 76,310
Manufacturing overhead applied 3,200 6,400 30,400 40,000
Total $8,830 $26,680 $128,940 $164,450
Manufacturing overhead for the month was underapplied by $6,000.
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) $25,720
B) $27,653
C) $25,707
D) $27,640
266) Jaquish Incorporated 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 $2,440 $ 7,800 $ 37,900 $ 48,140
Direct labor 3,190 12,480 60,640 76,310
Manufacturing overhead applied 3,200 6,400 30,400 40,000
Total $8,830 $26,680 $128,940 $164,450
Version 1 172
Manufacturing overhead for the month was underapplied by $6,000.
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 Work in Process of $480
B) debit to Work in Process of $8,830
C) debit to Work in Process of $480
D) credit to Work in Process of $8,830
267) Centore Incorporated 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 $ 7,590 $ 24,860 $ 33,100
Direct labor 2,180 20,700 67,800 90,680
Manufacturing overhead applied 930 7,130 22,940 31,000
Total $3,760 $35,420 $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
268) Centore Incorporated 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
Version 1 173
Direct materials $ 650 $ 7,590 $ 24,860 $ 33,100
Direct labor 2,180 20,700 67,800 90,680
Manufacturing overhead applied 930 7,130 22,940 31,000
Total $3,760 $35,420 $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
269) Reith Incorporated 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
Version 1 174
270) Reith Incorporated 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
271) Castagnola Incorporated 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:
Version 1 175
A) $30,660
B) $30,664
C) $30,296
D) $30,300
272) Castagnola Incorporated 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
273) Stockman Incorporated 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
Version 1 176
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
274) Stockman Incorporated 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
275) Held Incorporated 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
Version 1 177
Direct materials $ 5,890 $14,070 $ 95,760 $115,720
Direct labor 9,680 20,100 136,800 166,580
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
276) Held Incorporated 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 20,100 136,800 166,580
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
Version 1 178
277) Vogel Corporation’s cost of goods manufactured last month was $136,000. The
beginning finished goods inventory was $35,000 and the ending finished goods inventory was
$48,000. Overhead was overapplied by $6,000. Any underapplied or overapplied manufacturing
overhead is closed out to cost of goods sold.
How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $171,000
B) $123,000
C) $117,000
D) $136,000
278) Vogel Corporation’s cost of goods manufactured last month was $136,000. The
beginning finished goods inventory was $35,000 and the ending finished goods inventory was
$48,000. Overhead was overapplied by $6,000. Any underapplied or overapplied manufacturing
overhead is closed out to cost of goods sold.
How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $123,000
B) $171,000
C) $136,000
D) $117,000
279) When raw materials are purchased, they are recorded as an asset.
⊚ true
⊚ false
280) The absorption cost approach provides for the absorption of all manufacturing costs,
fixed and variable, into units of product.
⊚ true
⊚ false
Version 1 179
281) The following entry would be used to record depreciation on manufacturing equipment:
Debit Credit
Manufacturing Overhead XXX
Accumulated Depreciation XXX
⊚ true
⊚ false
282) If a company uses a predetermined overhead rate, actual manufacturing overhead costs of
a period will be recorded in the Manufacturing Overhead account and will be recorded on the job
cost sheets.
⊚ true
⊚ false
283) The journal entry for cost of goods manufactured includes the costs of units that are
partially completed.
⊚ true
⊚ false
284) Advertising costs should NOT be charged to the Manufacturing Overhead account.
⊚ true
⊚ false
285) The following entry would be used to record the transfer of $40,000 of direct material
and $10,000 of indirect material from the storeroom to production:
Debit Credit
Direct Materials 40,000
Indirect Materials 10,000
Version 1 180
Raw Materials 50,000
⊚ true
⊚ false
286) Entry (16) in the below T-account represents the cost of goods manufactured transferred
to Finished Goods from Work in Process.
Finished Goods
Debit Credit
Balance 40,000 (16) 520,000
(15) 540,000
Balance 60,000
⊚ true
⊚ false
287) Entry (11) in the below T-account could represent overhead cost applied to Work in
Process.
Work In Process
Debit Credit
Balance 40,000 (11) 330,000
(2) 100,000
(3) 90,000
(7) 120,000
Balance 20,000
⊚ true
⊚ false
288) Entry (1) in the below T-account represents the purchase rather than use of raw materials.
Version 1 181
Raw Materials
Debit Credit
Balance 10,000 (2) 60,000
(1) 70,000
Balance 20,000
⊚ true
⊚ false
289) Entry (4) in the below T-account could represent the cost of overhead applied to Work in
Process.
Manufacturing Overhead
Debit Credit
(2) 4,000 (7) 180,000
(3) 30,000
(4) 80,000
(5) 40,000
(6) 36,000
190,000 180,000
Balance 10,000
⊚ true
⊚ false
290) Entry (4) in the T-account below represents raw materials requisitioned for use in
production.
Raw Materials
Debit Credit
Balance 15,000 (4) 87,000
(3) 94,000
Balance 22,000
Version 1 182
⊚ true
⊚ false
291) Entry (4) in the below T-account could represent the cost of property taxes and insurance
incurred on the factory.
Manufacturing Overhead
Debit Credit
(2) 4,000 (7) 180,000
(3) 30,000
(4) 80,000
(5) 40,000
(6) 36,000
190,000 180,000
Balance 10,000
⊚ true
⊚ false
292) The $10,000 balance in the T-account below represents overapplied manufacturing
overhead for the period.
Manufacturing Overhead
Debit Credit
(2) 4,000 (7) 180,000
(3) 30,000
(4) 80,000
(5) 40,000
(6) 36,000
190,000 180,000
Balance 10,000
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⊚ true
⊚ false
293) In the Schedule of Cost of Goods Manufactured, Cost of goods manufactured = Total
manufacturing costs + Beginning work in process inventory − Ending work in process inventory.
⊚ true
⊚ false
294) Assume that a company closes out any manufacturing overhead overapplied or
underapplied to cost of goods sold. Then in the Schedule of Cost of Goods Sold, Adjusted cost of
goods sold = Unadjusted cost of goods sold + Overapplied overhead − Underapplied overhead.
⊚ true
⊚ false
295) In the Schedule of Cost of Goods Manufactured, Total raw materials available = Ending
raw materials inventory + Purchases of raw materials.
⊚ true
⊚ false
296) In the Schedule of Cost of Goods Sold, Cost of goods available for sale = Ending finished
goods inventory + Cost of goods manufactured.
⊚ true
⊚ false
297) In the Schedule of Cost of Goods Sold, Unadjusted cost of goods sold = Beginning
finished goods inventory + Cost of goods manufactured − Ending finished goods inventory.
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⊚ true
⊚ false
298) On a manufacturing company’s income statement, direct labor is separately listed as an
expense.
⊚ true
⊚ false
299) In the Schedule of Cost of Goods Manufactured, Raw materials used in production =
Beginning raw materials inventory + Purchases of raw materials − Ending raw materials
inventory.
⊚ true
⊚ false
300) The schedule of cost of goods manufactured contains three elements of product costs—
direct materials, direct labor, and manufacturing overhead—and it summarizes the portions of
those costs that remain in ending Work in Process inventory and that are transferred out of Work
in Process into Finished Goods.
⊚ true
⊚ false
301) In the Schedule of Cost of Goods Manufactured, Total direct materials = Raw materials
used in production − Ending raw materials inventory.
⊚ true
⊚ false
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302) If a company closes any underapplied or overapplied manufacturing overhead to the Cost
of Goods Sold account, then Cost of Goods Sold will be debited if manufacturing overhead is
overapplied for the period.
⊚ true
⊚ false
303) A credit balance in the Manufacturing Overhead account at the end of the year means that
manufacturing overhead was overapplied.
⊚ true
⊚ false
304) Two of the reasons why manufacturing overhead may be underapplied are: (1) the
estimated total manufacturing overhead cost may have been too high; and (2) the estimated total
amount of the allocation base may have been too low.
⊚ true
⊚ false
305) If the actual manufacturing overhead cost for a period exceeds the manufacturing
overhead cost applied, then manufacturing overhead would be considered to be overapplied.
⊚ true
⊚ false
306) The entire difference between the actual manufacturing overhead cost for a period and
the applied manufacturing overhead cost is typically closed to the Work In Process account.
⊚ true
⊚ false
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Answer Key
Test name: chapter 3
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