50.
The balance in the Work-in-Process account equals:
51.
Grayson Inc. has provided the following data for the month of October. The balance in the
Finished Goods inventory account at the beginning of the month was $49,000 and at the
end of the month was $45,000. The cost of goods manufactured for the month was
$226,000. The actual manufacturing overhead cost incurred was $74,000 and the
manufacturing overhead cost applied to Work-in-Process was $70,000. The adjusted cost
of goods sold that would appear on the income statement for October is:
52.
53.
Under Lamar Company’s job-order costing system, manufacturing overhead is applied to
Work-in-Process inventory using a predetermined overhead rate. During June, Lamar’s
transactions included the following:
Direct materials issued to production
$90,000
Indirect materials issued to production
$8,000
Manufacturing overhead cost incurred
$125,000
Manufacturing overhead cost applied
$113,000
Direct labor cost incurred
$107,000
54.
55.
Fogel Flight Company uses a job-order costing system. The direct materials for Job
#045391 were purchased in September and put into production in October. The job was
not completed by the end of October. At the end of October, in what account would the
direct material cost assigned to Job #045391 be located?
7-47
56.
Carson Inc. 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
$5,010
$11,500
$111,320
$127,830
Direct labor
2,430
10,500
101,640
114,570
Manufacturing
overhead
applied
3,200
7,200
69,600
80,000
Total
$10,640
$29,200
$282,560
$322,400
7-49
57.
The following selected data were taken from the books of the Owens O-Rings Company.
The company uses job costing to account for manufacturing costs. The data relate to April
operations.
A) Materials and supplies were requisitioned from the stores clerk as follows:
Job 405, material X, $7,000.
Job 406, material X, $3,000; material Y, $6,000.
Job 407, material X, $7,000; material Y, $3,200.
For general factory use: materials A, B, and C, $2,300.
B) Time tickets for the month were chargeable as follows:
Job 405
$11,000
3,000 hours
Job 406
$14,000
3,600 hours
Job 407
$8,000
1,900 hours
Indirect labor
$3,700
7-51
58.
The following selected data were taken from the books of the Owens O-Rings Company.
The company uses job costing to account for manufacturing costs. The data relate to April
operations.
A) Materials and supplies were requisitioned from the stores clerk as follows:
Job 405, material X, $7,000.
Job 406, material X, $3,000; material Y, $6,000.
Job 407, material X, $7,000; material Y, $3,200.
For general factory use: materials A, B, and C, $2,300.
B) Time tickets for the month were chargeable as follows:
Job 405
$11,000
3,000 hours
Job 406
$14,000
3,600 hours
Job 407
$8,000
1,900 hours
Indirect labor
$3,700
7-53
59.
The following selected data were taken from the books of the Owens O-Rings Company.
The company uses job costing to account for manufacturing costs. The data relate to April
operations.
A) Materials and supplies were requisitioned from the stores clerk as follows:
Job 405, material X, $7,000.
Job 406, material X, $3,000; material Y, $6,000.
Job 407, material X, $7,000; material Y, $3,200.
For general factory use: materials A, B, and C, $2,300.
B) Time tickets for the month were chargeable as follows:
Job 405
$11,000
3,000 hours
Job 406
$14,000
3,600 hours
Job 407
$8,000
1,900 hours
Indirect labor
$3,700
60.
What are the transfers-out from the Finished Goods Inventory called?
61.
In a job costing system, the dollar amount in the journal entry that transfers the costs of
jobs from Work-in-Process Inventory to Finished Goods Inventory is the sum of the costs
charged to all jobs:
62.
Which of the following events or transactions will not result in manufacturing overhead
being applied to production?
63.
The journal entry to record the completion of a job in a job costing system is:
A.
Finished Goods Inventory
xxx
Materials Inventory
xxx
B.
Work-In-Process Inventory
xxx
Applied Manufacturing Overhead
xxx
C.
Manufacturing Overhead Control
xxx
Finished Goods Inventory
xxx
D.
Finished Goods Inventory
xxx
Work-In-Process Inventory
xxx
64.
It is possible that the total cost of a job started in April and completed in May will not
include:
65.
Underapplied overhead occurs when the balance in the Manufacturing Overhead Control
account is:
66.
7-60
67.
The journal entry to write-off an insignificant underapplied overhead balance at the end of
an accounting period is:
A.
Applied Manufacturing Overhead
XXX
Cost of Goods Sold
XXX
Manufacturing Overhead Control
XXX
B.
Applied Manufacturing Overhead
XXX
Cost of Goods Sold
XXX
Manufacturing Overhead Control
XXX
C.
Applied Manufacturing Overhead
XXX
Work-In-Process Inventory
XXX
Finished Goods Inventory
XXX
Cost of Goods Sold
XXX
Manufacturing Overhead Control
XXX
D.
Applied Manufacturing Overhead
XXX
Work-In-Process Inventory
XXX
Finished Goods Inventory
XXX
Cost of Goods Sold
XXX
Manufacturing Overhead Control
XXX