53. Mallette Inc. uses a job-order costing system in which any underapplied or overapplied
overhead is closed out to cost of goods sold at the end of the month. The company has provided
the following data for May:
The cost of goods sold that appears on the income statement for May and that has been
adjusted for any underapplied or overapplied overhead is closest to:
54. Sharp Company’s records show that overhead was overapplied by $10,000 last year. This
overapplied overhead was closed out to the Cost of Goods Sold account at the end of the year. In
trying to determine why overhead was overapplied by such a large amount, the company has
discovered that $6,000 of depreciation on factory equipment was charged to administrative
expense in error. Given the above information, which of the following statements is true?
55. Lietz Corporation has provided the following data concerning manufacturing overhead for
January:
The company’s Cost of Goods Sold was $369,000 prior to adjusting for any underapplied or
overapplied overhead. Which of the following statements is true?
56. The actual manufacturing overhead incurred at Hogans Corporation during April was
$59,000, while the manufacturing overhead applied to jobs was $74,000. The company’s Cost of
Goods Sold was $289,000 prior to adjusting for any underapplied or overapplied overhead. Which
of the following statements is true?
57. Molano Corporation has provided the following data concerning manufacturing overhead
for June:
The company’s Cost of Goods Sold was $255,000 prior to adjusting for any underapplied or
overapplied overhead. Which of the following statements is true?
58. Paskey Inc. uses a job-order costing system in which any underapplied or overapplied
overhead is closed to cost of goods sold at the end of the month. In July the company completed
job C77T that consisted of 12,000 units of one of the company’s standard products. No other jobs
were in process during the month. The job cost sheet for job C77T shows that the job’s total cost
was $771,600. During the month, 10,000 completed units from job C77T were sold. No other
products were sold during the month. The unadjusted cost of goods sold (in other words, the cost
of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for July is
closest to:
59. Currey Inc., which uses job-order costing, has provided the following data for August:
The unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any
underapplied or overapplied overhead) for August is closest to:
60. Watwood Inc. uses a job-order costing system in which any underapplied or overapplied
overhead is closed out to cost of goods sold at the end of the month. The company’s cost of
goods manufactured for June was $230,000; its beginning finished goods inventory was $34,000;
its ending finished goods inventory was $52,000; its manufacturing overhead was underapplied
by $1,000. The cost of goods sold that appears on the income statement for June and that has
been adjusted for any underapplied or overapplied overhead is closest to:
61. Falwell Inc., which uses job-order costing, has provided the following data for June:
The unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any
underapplied or overapplied overhead) for June is closest to:
62. Heminover Inc., which uses job-order costing, has provided the following data for June:
The cost of goods manufactured for June is closest to:
63. Ports Inc., which uses job-order costing, has provided the following data for June:
The cost of goods manufactured for June is closest to:
64. Under Lamprey Company’s job-order costing system, manufacturing overhead is applied
to jobs using a predetermined overhead rate. During January, Lamprey’s transactions included
the following:
Lamprey Company had no beginning or ending inventories. What was the cost of goods
manufactured for January?
65. The predetermined overhead rate for the year was closest to:
66. The applied manufacturing overhead for the year was closest to:
67. The overhead for the year was:
68. The predetermined overhead rate was based on how many estimated machine-hours?
69. The applied manufacturing overhead for the year was closest to:
70. The overhead for the year was:
Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours,
has provided the following data for its most recent year of operations.
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.
71. The predetermined overhead rate is closest to:
72. The applied manufacturing overhead for the year is closest to:
73. The overhead for the year was:
Daane Company had only one job in process on May 1. The job had been charged with $1,000 of
direct materials, $3,302 of direct labor, and $5,382 of manufacturing overhead cost. The company
assigns overhead cost to jobs using the predetermined overhead rate of $20.70 per direct labor–
hour.
During May, the following activity was recorded:
Work in process inventory on May 30 contains $2,921 of direct labor cost. Raw materials consist
solely of items that are classified as direct materials.
74. The amount of direct materials cost in the May 30 work in process inventory account
was: