Exam 25: Manufacturing Accounting

The following data are available for Convoy Trucks: Estimated machine hours 40,000 hours Actual machine hours 5,000 hours Estimated manufacturing overhead costs \ 150,000 Actual manufacturing overhead costs 13,000 Required: a.Compute the predetermined overhead rate assuming the rate is based on machine hours. b.Prepare the journal entry to record the applied overhead.

During the week ended November 30,total factory payroll incurred was $8,000.Of this total,80% was for direct labor.The entry to record the payroll distribution would include:

What inventories are included in determining the cost of goods sold?

A clock card is:

The entry to record selling a product that cost $14,000 would be a credit to Finished Goods Inventory $14,000,and a debit to Cost of Goods Sold $14,000.

A report issued by the payroll department to categorize all the types of labor incurred during the week is a:

The entry for indirect materials (such as glue,etc. )requisitioned for use in production is:

Applied overhead to production. Debit ________ Credit ________

The work-in-process ending inventory was overstated.This error will cause:

The journal entry to record the direct labor summarized on the labor distribution report would include a:

The Overhead-Applied account is used for the:

If the overhead applied rate based on direct labor hours is $7.00 and the actual labor hours are 500,what is the amount credited to Manufacturing Overhead-Applied?

Overhead may be applied based on direct labor hours or machine hours.

The three major manufacturing inventories do NOT include which of the following?

Finished goods ending inventory was understated.This error will cause:

The formula for cost of goods manufactured is:

The following data are available for Jackson Company. Annual estimated manufacturing overhead costs \ 90,000 Actual manufacturing overhead costs in May 16,200 Annual estimated direct labor hours 30,000 Actual direct labor hours in May 6,000 Required: a.Compute the predetermined rate based on direct labor hours. b.Prepare the journal entry to record the applied overhead for the month of May.

One way to determine an overhead application rate is to divide estimated annual direct labor hours by estimated annual overhead costs.

Cost of Goods Sold is debited after items have been sold.

From the following transactions,prepare the appropriate general journal entries for the month of April. a.Raw materials costing $60,000 were issued from the storeroom. b.Direct labor of $53,000 was charged to production. c.Indirect labor costs of $17,000 were incurred. d.Overhead was applied at the rate of 40% of direct labor dollars. e.Completed products costing $42,000 were transferred to finished goods. f.Products costing $32,000 were sold for $50,000 on account.