Exam 25: Manufacturing Accounting

Estimated manufacturing overhead costs were $60,000 and the number of estimated machine hours was 20,000.Actual overhead costs were $61,000 and the actual number of machine hours used was 20,500.Based on machine hours,the overhead application rate per hour is:

When actual overhead costs are not known until the end of the month,an estimated overhead application rate should be determined so that the total weekly costs can be applied.

The purchase of direct materials was recorded as the purchase of office supplies.This error will cause:

The following data are available for Starbrite Corporation: Estimated direct labor hours 1000 Estimated overhead costs \ 36,000 If overhead is applied based on direct labor hours,the predetermined overhead rate is:

Madison Manufacturing is using a manufacturing overhead application rate of 130% of direct labor dollars.A job uses 10 direct labor hours at $20 per hour.How much overhead should be applied to the job?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Raw materials purchases

Work in Process inventory includes the total costs of manufacturing a product.

Record in general journal form the following transactions for Marble Manufacturing: Feb. 4 Raw materials of $\$ 10$ , 000 were issued from the storeroom. Feb. 7 Charged $\$ 20,000$ of direct labor to production. Feb. 10 Supplies costing $\$ 6,000$ were issued from the storeroom. Feb. 15 The following expenses were charged to overhead: depreciation $\$ 5,000$ , rent $\$ 4,000$ , and electricity $\$ 1,500$ . Feb. 20 Overhead was applied at $80 \%$ of direct labor dollars. Feb. 21 Transferred completed goods costing $\$ 8,000$ to finished goods.

Work in Process Inventory appears on which of the following statements on the worksheet?

Journal entries crediting Payroll Payable and debiting Work-in-Process Inventory are made for:

If direct labor for the month is $100,000,and overhead is applied based on 75% of direct labor dollars,what is the entry to apply overhead?

The direct costs were overstated.This error will cause:

Raw material inventory appears on the:

The three manufacturing inventories are raw materials,work-in-process,and merchandise inventory.

Work-in-Process is debited and Payroll is credited when direct labor is charged to production.

The first step in determining total manufacturing costs is to calculate:

A cost of goods manufactured statement should be prepared before the income statement has been prepared.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Cost of goods sold

The entry to record rent expense $9,000,supervision expense $19,000,and depreciation expense $7,000 to overhead is:

Purchased raw materials on account. Debit ________ Credit ________