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90.
Which of the following is correct with respect to closing out overapplied manufacturing
overhead to Cost of Goods Sold versus closing it out to Cost of Goods Sold and Finished
Goods and Work-in-Process inventories?
91.
Duran Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the total estimated manufacturing overhead was $224,580. At the
end of the year, actual direct labor-hours for the year were 18,200 hours, manufacturing
overhead for the year was underapplied by $12,100, and the actual manufacturing
overhead was $219,580. The predetermined overhead rate for the year must have been
closest to:
7-83
92.
7-84
93.
94.
At the beginning of the year, manufacturing overhead for the year was estimated to be
$267,500. At the end of the year, actual direct labor-hours for the year were 22,100 hours,
the actual manufacturing overhead for the year was $262,500, and manufacturing
overhead for the year was overapplied by $13,750. If the predetermined overhead rate is
7-85
95.
7-87
96.
Fortune Company uses a predetermined overhead rate based on direct labor-hours to
apply manufacturing overhead to jobs.
On October 1, the estimates for the
month were:
Manufacturing overhead
$17,000
Direct labor-hours
13,600
During October, the actual results were:
Manufacturing overhead
$18,500
Direct labor-hours
12,000
97.
The Work-in-Process inventory account of a manufacturing firm shows a balance of
7-88
98.
Faucette Corporation has provided the following data concerning manufacturing overhead
for January:
Actual manufacturing overhead incurred
$52,000
Manufacturing overhead applied to
Work-in-Process
$75,000
99.
In computing its predetermined overhead rate, Marple Company inadvertently left its
indirect labor costs out of the computation. This oversight will cause:
100.
Which of the following is the correct formula to compute the predetermined overhead
rate?
101.
The Work-in-Process Inventory account of a manufacturing firm has a balance of $2,400
at the end of an accounting period. The job cost sheets of two uncompleted jobs show
charges of $400 and $200 for materials used, and charges of $300 and $500 for direct
labor used. Overhead is applied as a percentage of direct labor costs. The predetermined
rate is:
102.
Estimated manufacturing overhead for
the year
$30,000
Estimated direct labor hours for the year
2,000
103.
Estimated manufacturing overhead for
the year
$30,000
Estimated direct labor hours for the year
2,000
104.
Estimated manufacturing overhead for
the year
$30,000
Estimated direct labor hours for the year
2,000
Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct
labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The
actual manufacturing overhead was $37,000.
What is the amount of the under- or overapplied manufacturing overhead?
105.
In a traditional job order costing system, the issue of indirect materials to a production
department increases: (CPA adapted)
106.
One of the primary differences between job costing for service and manufacturing
companies is service firms generally:
107.
Which of the following is not a difference between job costing for service firms and job
costing for manufacturing companies?
108.
The journal entry to record the completion of a contract in a job costing system for a
service firm is:
A.
Cost of Services Billed
xxx
Wages Payable
xxx
B.
Work-In-Process Inventory
xxx
Wages Payable
xxx
C.
Cost of Services Billed
xxx
Work-In-Process Inventory
xxx
D.
Finished Goods Inventory
xxx
Work-In-Process Inventory
xxx
7-99
109.
Complex jobs that take multiple time periods and require the work of many different
departments, divisions, or subcontractors are called:
Essay Questions
7-100
110.
The financial records for the Lazer Manufacturing Company have been destroyed in a
flood. 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.
Beginning
$
Ending
$
Direct materials
$8,000
$6,400
Work-in-process
7,500
???
Finished goods
???
4,200
Other information:
Direct materials used
$18,000
Direct labor
13,500
Overhead applied
8,000
Cost of goods
manufactured
39,500
Cost of goods sold
57,000
