7-21
33.
The following events took place at a manufacturing company for the current year:
(1) Purchased $95,000 in direct materials.
(2) Incurred labor costs as follows: (a) direct, $56,000 and (b) indirect, $13,600.
(3) Other manufacturing overhead was $107,000, excluding indirect labor.
(4) Transferred 80% of the materials to the manufacturing assembly line.
(5) Completed 65% of the Work-in-Process during the year.
(6) Sold 85% of the completed goods.
(7) There were no beginning inventories.
What is the journal entry to record the direct labor costs for the period?
A.
Labor Inventory
XXX
Wages Payable
XXX
B.
Work-In-Process Inventory
Wages Payable
XXX
C.
Manufacturing Overhead Control
XXX
Wages Payable
XXX
D.
Wages Expense
XXX
Cash
XXX
34.
35.
The journal entry to record the actual manufacturing overhead costs for indirect material
is:
A.
Manufacturing Overhead Control
xxx
Materials Inventory
xxx
B.
Materials Inventory
xxx
Applied Manufacturing Overhead
xxx
C.
Manufacturing Overhead Control
xxx
Finished Goods Inventory
xxx
D.
Work-In-Process Inventory
xxx
Applied Manufacturing Overhead
xxx
36.
The general journal entry to record the issuance of the materials represented by the
following materials requisitions for the month includes:
Requisition No.
Description
Amount
372
Job No. 179
$5,250
373
Job No. 184
$3,700
374
Job No. 180
$4,525
375
General factory use
$725
376
Job No. 182
$2,470
7-25
37.
The financial records for the Harrison Manufacturing Company have been destroyed in a
fire. The following information has been obtained from a separate set of books maintained
by the cost accountant. The cost accountant now asks for your assistance in computing
the missing amounts.
Direct Materials Inventory
Cost of Goods Sold
Beg. Bal.
8,000
Transferred
Out?
$57,000
Purchases
?
End. Bal.
6,400
Work-in-Process Inventory
Finished Goods Inventory
Beg. Bal.
7,500
Transferred
Out?
Beg. Bal.
?
Transferred
Out?
Materials
18,000
Labor
13,500
Overhead
8,000
Transferred
in
39,500
End. Bal.
?
End. Bal.
4,200
38.
The financial records for the Harrison Manufacturing Company have been destroyed in a
fire. The following information has been obtained from a separate set of books maintained
by the cost accountant. The cost accountant now asks for your assistance in computing
the missing amounts.
Direct Materials Inventory
Cost of Goods Sold
Beg. Bal.
8,000
Transferred
Out?
$57,000
Purchases
?
End. Bal.
6,400
Work-in-Process Inventory
Finished Goods Inventory
Beg. Bal.
7,500
Transferred
Out?
Beg. Bal.
?
Transferred
Out?
Materials
18,000
Labor
13,500
Overhead
8,000
Transferred
in
39,500
End. Bal.
?
End. Bal.
4,200
39.
The financial records for the Harrison Manufacturing Company have been destroyed in a
fire. The following information has been obtained from a separate set of books maintained
by the cost accountant. The cost accountant now asks for your assistance in computing
the missing amounts.
Direct Materials Inventory
Cost of Goods Sold
Beg. Bal.
8,000
Transferred
Out?
$57,000
Purchases
?
End. Bal.
6,400
Work-in-Process Inventory
Finished Goods Inventory
Beg. Bal.
7,500
Transferred
Out?
Beg. Bal.
?
Transferred
Out?
Materials
18,000
Labor
13,500
Overhead
8,000
Transferred
in
39,500
End. Bal.
?
End. Bal.
4,200
40.
Stock Co. uses a job order costing system. The following debits (credits) appeared in
Stock’s work-in-process account for the month of April:
April
Description
Amount
1
Balance
$4,000
30
Direct materials
24,000
30
Direct labor
16,000
30
Factory overhead
12,800
30
To finished goods
(48,000)
41.
The following are Margin Co.’s production costs for December:
Direct Material
$100,000
Direct Labor
90,000
Factory Overhead
4,000
What amount of costs should be traced to specific products in the production process?
(CPA adapted)
42.
Under Eagle Co.’s job order costing system, manufacturing overhead is applied to Work–in–
Process using a predetermined annual overhead rate. During February, Eagle’s
transactions included the following:
Direct materials issued to production
$90,000
Indirect materials issued to production
8,000
Manufacturing overhead incurred
125,000
Manufacturing overhead applied
113,000
Direct labor costs
107,000
7-31
43.
Pigot Corporation uses job costing and has two production departments, M and A.
Budgeted manufacturing costs for the year are as follows:
Dept. M
Dept. A
Direct materials
$700,000
$100,000
Direct labor
200,000
800,000
Factory overhead
600,000
400,000
The actual direct material and direct labor costs charged to Job. No. 432 during the year
were as follows:
Direct material
$25,000
Direct labor:
Department M
$8,000
Department A
12,000
20,000
44.
The Falcon Company does not maintain backup documents for its computer files. In June,
some of the current data were lost, and you have been asked to help reconstruct the data.
The following beginning balances on June 1 are known:
Direct Materials Inventory
$12,000
Work-in-Process Inventory
4,500
Finished Goods Inventory
11,000
Manufacturing Overhead Control
16,500
Accounts Payable
6,000
45.
The Falcon Company does not maintain backup documents for its computer files. In June,
some of the current data were lost, and you have been asked to help reconstruct the data.
The following beginning balances on June 1 are known:
Direct Materials Inventory
$12,000
Work-in-Process Inventory
4,500
Finished Goods Inventory
11,000
Manufacturing Overhead Control
16,500
Accounts Payable
6,000
46.
The Falcon Company does not maintain backup documents for its computer files. In June,
some of the current data were lost, and you have been asked to help reconstruct the data.
The following beginning balances on June 1 are known:
Direct Materials Inventory
$12,000
Work-in-Process Inventory
4,500
Finished Goods Inventory
11,000
Manufacturing Overhead Control
16,500
Accounts Payable
6,000
47.
The Falcon Company does not maintain backup documents for its computer files. In June,
some of the current data were lost, and you have been asked to help reconstruct the data.
The following beginning balances on June 1 are known:
Direct Materials Inventory
$12,000
Work-in-Process Inventory
4,500
Finished Goods Inventory
11,000
Manufacturing Overhead Control
16,500
Accounts Payable
6,000
48.
The Falcon Company does not maintain backup documents for its computer files. In June,
some of the current data were lost, and you have been asked to help reconstruct the data.
The following beginning balances on June 1 are known:
Direct Materials Inventory
$12,000
Work-in-Process Inventory
4,500
Finished Goods Inventory
11,000
Manufacturing Overhead Control
16,500
Accounts Payable
6,000
49.
Which of the following accounts is debited when direct labor is recorded?