41
66) 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:
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:
A) $1,318,000
B) $1,008,000
C) $728,000
D) $1,038,000
43
67) 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
Manufacturing overhead:
Indirect labor cost
$
179,000
Other manufacturing overhead costs incurred
$
465,000
Manufacturing overhead is overapplied or underapplied by:
A) $165,000 Overapplied
B) $94,000 Underapplied
C) $165,000 Underapplied
D) $94,000 Overapplied
68) Cai Corporation uses a job-order costing system and has provided the following partially
completed T-account summary for the past year.
Raw Materials
Bal. 1/1
17,000
Credits
?
Debits
97,000
Bal. 12/31
30,000
Work In Process
Bal. 1/1
19,000
Credits
506,000
Direct materials
74,000
Direct labor
13,000
Overhead applied
257,000
Bal. 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
Raw materials inventory, 1/1
Add: Debits (purchases of raw materials)
Materials available for use
Deduct: Raw materials inventory, 12/31
Materials requisitioned for use in production
Deduct: Direct materials
Indirect materials
46
69) The following accounts are from last year’s books at Sharp Manufacturing:
Raw Materials
Bal
0
(b)
154,000
(a)
164,000
10,000
Work In Process
Bal
0
(f)
510,000
(b)
132,000
(c)
168,000
(e)
210,000
0
Finished Goods
Bal
0
(g)
460,000
(f)
510,000
50,000
Manufacturing Overhead
(b)
22,000
(e)
210,000
(c)
26,000
(d)
156,000
(h)
6,000
6,000
Cost of Goods Sold
(g)
460,000
(h)
6,000
454,000
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
47
70) 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
71) 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:
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
Balance, beginning
Raw materials used in production
434,000
Balance, ending*
72) Hougham Corporation uses a job-order costing system and has provided the following
partially completed T-account summary for the past year.
Raw Materials
Bal. 1/1
15,000
Credits
?
Debits
109,000
Bal. 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
Raw materials inventory, 1/1
Add: Debits (purchases of raw materials)
Materials available for use
Deduct: Raw materials inventory, 12/31
Materials requisitioned for use in production
Bal. 1/1
Credits (plug)
Debits
Bal. 12/31
51
73) The following accounts are from last year’s books of Sharp Manufacturing:
Raw Materials
Bal
0
(b)
154,000
(a)
164,000
10,000
Work In Process
Bal
0
(f)
510,000
(b)
132,000
(c)
168,000
(e)
210,000
0
Finished Goods
Bal
0
(g)
460,000
(f)
510,000
50,000
Manufacturing Overhead
(b)
22,000
(e)
210,000
(c)
26,000
(d)
156,000
6,000
Cost of Goods Sold
(g)
460,000
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
53
74) The following accounts are from last year’s books at Sharp Manufacturing:
Raw Materials
Bal
0
(b)
154,000
(a)
164,000
10,000
Work In Process
Bal
0
(f)
510,000
(b)
132,000
(c)
168,000
(e)
210,000
0
Finished Goods
Bal
0
(g)
460,000
(f)
510,000
50,000
Manufacturing Overhead
(b)
22,000
(e)
210,000
(c)
26,000
(d)
156,000
6,000
Cost of Goods Sold
(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
54
75) Solt Corporation uses a job-order costing system and has provided the following partially
completed T-account summary for the past year.
Finished Goods
Bal. 1/1
38,000
Credits
?
Debits
?
Bal. 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
76) 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
77) 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
Bal. 1/1
18,000
Credits
?
Debits
520,000
Bal. 12/31
34,000
The cost of completed jobs transferred from Work in Process to Finished Goods during the year
was :
A) $520,000
B) $572,000
C) $538,000
D) $504,000
Work in process inventory, 1/1
Add: Debits (Additions to work in process)
Deduct: Work in process inventory, 12/31
Bal. 1/1
Credits (plug)
Debits
Bal. 12/31
78) Stjohns 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
Bal
22,000
Credits
534,000
Direct materials
85,000
Direct labor
161,000
Overhead applied
273,000
Bal.
?
Manufacturing Overhead
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
Process
Underapplied (overapplied) manufacturing overhead
)
Debits
Credits
Bal.
79) 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?
A) $137,000
B) $185,000
C) $151,000
D) $136,000
Beginning finished goods inventory
$
Add: Cost of goods manufactured
151,000
Cost of goods available for sale
$
185,000
80) 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
Direct materials
$
Direct labor
Manufacturing overhead cost applied to work in process
Total manufacturing costs
173,000
Add: Beginning work in process inventory
229,000
Deduct: Ending work in process inventory
Cost of goods manufactured
$
160,000
Beginning finished goods inventory
$
Add: Cost of goods manufactured
160,000
Cost of goods available for sale
193,000
Deduct: Ending finished goods inventory
Unadjusted cost of goods sold
$
157,000