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Two of the reasons why manufacturing overhead may be underapplied are: (1)the estimated total manufacturing overhead cost may have been too high; and (2)the estimated total amount of the allocation base may have been too low.

A) True
B) False

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Held Inc. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Held Inc. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was overapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. -The cost of goods sold for June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: A) $301,410 B) $299,790 C) $299,600 D) $301,600 Manufacturing overhead for the month was overapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. -The cost of goods sold for June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:


A) $301,410
B) $299,790
C) $299,600
D) $301,600

E) All of the above
F) None of the above

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Castagnola Inc. has provided the following data for the month of January. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Castagnola Inc. has provided the following data for the month of January. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was overapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. -The finished goods inventory at the end of January after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: A) $30,660 B) $30,664 C) $30,296 D) $30,300 Manufacturing overhead for the month was overapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. -The finished goods inventory at the end of January after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:


A) $30,660
B) $30,664
C) $30,296
D) $30,300

E) A) and B)
F) All of the above

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Tevebaugh 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: Tevebaugh 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: Results of operations: -The net operating income is: A) $892,750 B) $765,750 C) $546,750 D) $1,111,750 Results of operations: Tevebaugh 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: Results of operations: -The net operating income is: A) $892,750 B) $765,750 C) $546,750 D) $1,111,750 -The net operating income is:


A) $892,750
B) $765,750
C) $546,750
D) $1,111,750

E) A) and B)
F) None of the above

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Blasi 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: Blasi 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: Results of operations: Required: a.What is the total manufacturing cost added to Work in Process during the year? b.What is the cost of goods available for sale during the year? c.What is the net operating income for the year? Results of operations: Blasi 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: Results of operations: Required: a.What is the total manufacturing cost added to Work in Process during the year? b.What is the cost of goods available for sale during the year? c.What is the net operating income for the year? Required: a.What is the total manufacturing cost added to Work in Process during the year? b.What is the cost of goods available for sale during the year? c.What is the net operating income for the year?

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a.The total manufacturing cost added to ...

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Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below. -The manufacturing overhead was: A) $23,000 Overapplied B) $23,000 Underapplied C) $19,000 Overapplied D) $19,000 Underapplied Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below. Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below. -The manufacturing overhead was: A) $23,000 Overapplied B) $23,000 Underapplied C) $19,000 Overapplied D) $19,000 Underapplied Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below. -The manufacturing overhead was: A) $23,000 Overapplied B) $23,000 Underapplied C) $19,000 Overapplied D) $19,000 Underapplied -The manufacturing overhead was:


A) $23,000 Overapplied
B) $23,000 Underapplied
C) $19,000 Overapplied
D) $19,000 Underapplied

E) C) and D)
F) B) and D)

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Dipaola Corporation has provided the following data concerning last month's operations. Dipaola Corporation has provided the following data concerning last month's operations. How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured? A) $38,000 B) $32,000 C) $14,000 D) $26,000 Dipaola Corporation has provided the following data concerning last month's operations. How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured? A) $38,000 B) $32,000 C) $14,000 D) $26,000 How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured?


A) $38,000
B) $32,000
C) $14,000
D) $26,000

E) All of the above
F) None of the above

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Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: -The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is: A) B) C) D) -The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:


A) Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: -The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is: A) B) C) D)
B) Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: -The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is: A) B) C) D)
C) Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: -The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is: A) B) C) D)
D) Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: -The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is: A) B) C) D)

E) B) and C)
F) A) and C)

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Shane Corporation has provided the following data concerning last month's operations. Shane Corporation has provided the following data concerning last month's operations. 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 Shane Corporation has provided the following data concerning last month's operations. 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 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

E) All of the above
F) C) and D)

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Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600. -The predetermined overhead rate for the year was closest to:


A) $52.61
B) $49.91
C) $51.00
D) $51.49

E) A) and B)
F) A) and C)

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Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. (1) Raw materials purchased for cash, $96,000 (2) Direct materials requisitioned for use in production, $69,000 (3) Indirect materials requisitioned for use in production, $22,000 (4) Direct labor wages incurred and paid, $129,000 (5) Indirect labor wages incurred and paid, $16,000 (6) Additional manufacturing overhead costs incurred and paid, $121,000 (7) Manufacturing overhead costs applied to jobs, $163,000 (8) All of the jobs in process were completed. (9) All of the completed jobs were shipped to customers. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. Enter the transactions in the T-accounts below and then answer the following questions. Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. (1) Raw materials purchased for cash, $96,000 (2) Direct materials requisitioned for use in production, $69,000 (3) Indirect materials requisitioned for use in production, $22,000 (4) Direct labor wages incurred and paid, $129,000 (5) Indirect labor wages incurred and paid, $16,000 (6) Additional manufacturing overhead costs incurred and paid, $121,000 (7) Manufacturing overhead costs applied to jobs, $163,000 (8) All of the jobs in process were completed. (9) All of the completed jobs were shipped to customers. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. Enter the transactions in the T-accounts below and then answer the following questions. -The adjusted cost of goods sold for the month is: A) $335,000 B) $361,000 C) $357,000 D) $365,000 Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. (1) Raw materials purchased for cash, $96,000 (2) Direct materials requisitioned for use in production, $69,000 (3) Indirect materials requisitioned for use in production, $22,000 (4) Direct labor wages incurred and paid, $129,000 (5) Indirect labor wages incurred and paid, $16,000 (6) Additional manufacturing overhead costs incurred and paid, $121,000 (7) Manufacturing overhead costs applied to jobs, $163,000 (8) All of the jobs in process were completed. (9) All of the completed jobs were shipped to customers. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. Enter the transactions in the T-accounts below and then answer the following questions. -The adjusted cost of goods sold for the month is: A) $335,000 B) $361,000 C) $357,000 D) $365,000 Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. (1) Raw materials purchased for cash, $96,000 (2) Direct materials requisitioned for use in production, $69,000 (3) Indirect materials requisitioned for use in production, $22,000 (4) Direct labor wages incurred and paid, $129,000 (5) Indirect labor wages incurred and paid, $16,000 (6) Additional manufacturing overhead costs incurred and paid, $121,000 (7) Manufacturing overhead costs applied to jobs, $163,000 (8) All of the jobs in process were completed. (9) All of the completed jobs were shipped to customers. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. Enter the transactions in the T-accounts below and then answer the following questions. -The adjusted cost of goods sold for the month is: A) $335,000 B) $361,000 C) $357,000 D) $365,000 Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. (1) Raw materials purchased for cash, $96,000 (2) Direct materials requisitioned for use in production, $69,000 (3) Indirect materials requisitioned for use in production, $22,000 (4) Direct labor wages incurred and paid, $129,000 (5) Indirect labor wages incurred and paid, $16,000 (6) Additional manufacturing overhead costs incurred and paid, $121,000 (7) Manufacturing overhead costs applied to jobs, $163,000 (8) All of the jobs in process were completed. (9) All of the completed jobs were shipped to customers. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. Enter the transactions in the T-accounts below and then answer the following questions. -The adjusted cost of goods sold for the month is: A) $335,000 B) $361,000 C) $357,000 D) $365,000 Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. (1) Raw materials purchased for cash, $96,000 (2) Direct materials requisitioned for use in production, $69,000 (3) Indirect materials requisitioned for use in production, $22,000 (4) Direct labor wages incurred and paid, $129,000 (5) Indirect labor wages incurred and paid, $16,000 (6) Additional manufacturing overhead costs incurred and paid, $121,000 (7) Manufacturing overhead costs applied to jobs, $163,000 (8) All of the jobs in process were completed. (9) All of the completed jobs were shipped to customers. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. Enter the transactions in the T-accounts below and then answer the following questions. -The adjusted cost of goods sold for the month is: A) $335,000 B) $361,000 C) $357,000 D) $365,000 Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. (1) Raw materials purchased for cash, $96,000 (2) Direct materials requisitioned for use in production, $69,000 (3) Indirect materials requisitioned for use in production, $22,000 (4) Direct labor wages incurred and paid, $129,000 (5) Indirect labor wages incurred and paid, $16,000 (6) Additional manufacturing overhead costs incurred and paid, $121,000 (7) Manufacturing overhead costs applied to jobs, $163,000 (8) All of the jobs in process were completed. (9) All of the completed jobs were shipped to customers. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. Enter the transactions in the T-accounts below and then answer the following questions. -The adjusted cost of goods sold for the month is: A) $335,000 B) $361,000 C) $357,000 D) $365,000 -The adjusted cost of goods sold for the month is:


A) $335,000
B) $361,000
C) $357,000
D) $365,000

E) B) and C)
F) A) and C)

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Frankin Corporation has provided the following data concerning last month's operations. Frankin Corporation has provided the following data concerning last month's operations. How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured? A) $175,000 B) $221,000 C) $155,000 D) $169,000 Frankin Corporation has provided the following data concerning last month's operations. How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured? A) $175,000 B) $221,000 C) $155,000 D) $169,000 How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?


A) $175,000
B) $221,000
C) $155,000
D) $169,000

E) C) and D)
F) A) and D)

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The following partially completed T-accounts are for Stanford Corporation: The following partially completed T-accounts are for Stanford Corporation: -The indirect labor cost is: A) $8,000 B) $15,000 C) $18,000 D) $37,000 The following partially completed T-accounts are for Stanford Corporation: -The indirect labor cost is: A) $8,000 B) $15,000 C) $18,000 D) $37,000 The following partially completed T-accounts are for Stanford Corporation: -The indirect labor cost is: A) $8,000 B) $15,000 C) $18,000 D) $37,000 The following partially completed T-accounts are for Stanford Corporation: -The indirect labor cost is: A) $8,000 B) $15,000 C) $18,000 D) $37,000 The following partially completed T-accounts are for Stanford Corporation: -The indirect labor cost is: A) $8,000 B) $15,000 C) $18,000 D) $37,000 The following partially completed T-accounts are for Stanford Corporation: -The indirect labor cost is: A) $8,000 B) $15,000 C) $18,000 D) $37,000 The following partially completed T-accounts are for Stanford Corporation: -The indirect labor cost is: A) $8,000 B) $15,000 C) $18,000 D) $37,000 The following partially completed T-accounts are for Stanford Corporation: -The indirect labor cost is: A) $8,000 B) $15,000 C) $18,000 D) $37,000 -The indirect labor cost is:


A) $8,000
B) $15,000
C) $18,000
D) $37,000

E) A) and C)
F) All of the above

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Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs: Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs: Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19. -How much is Kapanga's work in process inventory balance at the end of October? A) $23,000 B) $30,500 C) $32,000 D) $43,000 Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19. -How much is Kapanga's work in process inventory balance at the end of October?


A) $23,000
B) $30,500
C) $32,000
D) $43,000

E) A) and D)
F) All of the above

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Tatar Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year: Tatar Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year: Results of operations: How much is the ending balance in the Raw Materials inventory account? A) $37,000 B) $120,000 C) $83,000 D) $517,000 Results of operations: Tatar Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year: Results of operations: How much is the ending balance in the Raw Materials inventory account? A) $37,000 B) $120,000 C) $83,000 D) $517,000 How much is the ending balance in the Raw Materials inventory account?


A) $37,000
B) $120,000
C) $83,000
D) $517,000

E) B) and C)
F) A) and D)

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Cienfuegos Corporation has provided the following data concerning last month's operations. Cienfuegos Corporation has provided the following data concerning last month's operations. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $157,000 B) $154,000 C) $161,000 D) $197,000 Cienfuegos Corporation has provided the following data concerning last month's operations. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $157,000 B) $154,000 C) $161,000 D) $197,000 The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?


A) $157,000
B) $154,000
C) $161,000
D) $197,000

E) None of the above
F) B) and D)

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Echher Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied by $36,700. -If the applied manufacturing overhead was $223,900,the actual manufacturing overhead cost for the year was:


A) $200,700
B) $260,600
C) $200,200
D) $187,200

E) C) and D)
F) None of the above

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Stockman Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Stockman Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was overapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. -The work in process inventory at the end of November after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: A) $17,050 B) $17,034 C) $16,886 D) $16,870 Manufacturing overhead for the month was overapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. -The work in process inventory at the end of November after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:


A) $17,050
B) $17,034
C) $16,886
D) $16,870

E) None of the above
F) B) and C)

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Heathcote 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: Heathcote 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: Results of operations: -Manufacturing overhead is overapplied or underapplied by: A) $186,000 Underapplied B) $5,000 Underapplied C) $186,000 Overapplied D) $5,000 Overapplied Results of operations: Heathcote 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: Results of operations: -Manufacturing overhead is overapplied or underapplied by: A) $186,000 Underapplied B) $5,000 Underapplied C) $186,000 Overapplied D) $5,000 Overapplied -Manufacturing overhead is overapplied or underapplied by:


A) $186,000 Underapplied
B) $5,000 Underapplied
C) $186,000 Overapplied
D) $5,000 Overapplied

E) None of the above
F) A) and B)

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Ellithorpe Corporation has provided the following data concerning last month's operations. Ellithorpe Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Determine the adjusted cost of goods sold for the month. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Determine the adjusted cost of goods sold for the month.

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