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Exam 3: Job-Order Costing: Cost Flows and External Reporting

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Question 41

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Braam Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 11,500 hours.At the end of the year,actual direct labor-hours for the year were 9,700 hours,the actual manufacturing overhead for the year was $143,350,and manufacturing overhead for the year was underapplied by $18,220.The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

A) $164,023
B) $125,130
C) $148,350
D) $138,350

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

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Question 42

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Darrow Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Last year,the Corporation worked 10,000 direct labor-hours and incurred $80,000 of actual manufacturing overhead cost.If overhead was underapplied by $2,000,the predetermined overhead rate for the Corporation for the year must have been:

A) $7.80 per direct labor-hour
B) $8.00 per direct labor-hour
C) $8.20 per direct labor-hour
D) $8.40 per direct labor-hour

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

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Question 43

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Coatney Inc.has provided the following data for the month of October.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 $7,000. The Corporation 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 manufacturing overhead applied during the month in those accounts. The finished goods inventory at the end of October after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Testor Products uses a job-order costing system with a predetermined overhead rate based on machine-hours.The company closes out any underapplied or overapplied overhead to Cost of Goods Sold. Required: If overhead is overapplied,what adjustment does the company make to Cost of Goods Sold? Is Cost of Goods Sold increased or decreased? Why?

Boursaw 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. -How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

The actual manufacturing overhead incurred at Gutekunst Corporation during March was $53,000,while the manufacturing overhead applied to Work in Process was $73,000.The Corporation's Cost of Goods Sold was $451,000 prior to closing out its Manufacturing Overhead account.The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold.Which of the following statements is true?

Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Results of operations: -The cost of goods manufactured for the year was:

Hougham Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. The cost of raw materials requisitioned for use in production during the year was:

Falkenstein Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Required: What was the cost of indirect materials requisitioned for use in production during the year?

Which of the following statements is true?

When closing overapplied manufacturing overhead to Cost of Goods Sold,which of the following would be true?

Chavez Corporation reported the following data for the month of July: Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. -The cost of goods manufactured for July is:

When raw materials are purchased,they are recorded as an asset.

Forbes Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.At the beginning of the period,the Corporation estimated manufacturing overhead would be $18,000 and direct labor-hours would be 15,000.The actual figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours.The cost records for the period will show:

Farrel Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year: $\begin{array}{lr}\text {Direct labor cost. }&\$574,000\\\text {Manufacturing overhead: }\\\text {Indirect labor cost }&\$163,000\\\text {Other manufacturing overhead costs incurred }&\$584,000\\\end{array}$ What is the journal entry to record the direct and indirect labor costs incurred during the year?

Matthias Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of May.Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold,the total of the debits to the Manufacturing Overhead account was $53,000 and the total of the credits to the account was $69,000.Which of the following statements is true?

On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During November, $95,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $3,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: -The debits to the Work in Process account as a consequence of the raw materials transactions in November total:

The journal entry to record applying overhead during the production process is:

Tusa 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 adjusted Cost of Goods Sold for the year is:

Refer to the T-account below: The ending balance of $8,000 represents which of the following?