Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours.It has provided the following information for the year: \[\begin{array} { | l | l | } \hline \text { Actual manufacturing overhead costs incurred } & \$ 100,000 \\ \hline \text { Manufacturing overhead costs allocated to production } & \$ 56,000 \\ \hline \text { Actual direct materials cost } & \$ 220,000 \\ \hline \text { Actual direct labor cost } & \$ 40,000 \\ \hline \text { Actual machine hours } & 32,000 \text { hours } \\ \hline \end{array}\] Based on the above information,calculate the predetermined overhead allocation rate applied by Felton Quality.(Round your answer to the nearest cent.)

A) $1.75 per machine hour B) $3.13 per machine hour C) $6.88 per machine hour D) $1.25 per machine hour A) $1.75 per machine hour B) $3.13 per machine hour C) $6.88 per machine hour D) $1.25 per machine hour

The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October: \[\begin{array} { | l | r | } \hline \text { Account } & \text { Debit } \\ \hline \text { Raw Materials Inventory } & \$ 31,000 \\ \hline \text { Work-in-Process Inventory } & 44,000 \\ \hline \text { Finished Goods Inventory } & 54,000 \\ \hline \text { Manufacturing Overhead } & 20,000 \\ \hline \end{array}\] During the month,direct materials amounting to $21,000 and indirect materials amounting to $6000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?

A) $44,000 B) $65,000 C) $10,000 D) $26,000 A) $44,000 B) $65,000 C) $10,000 D) $26,000

The accounts of Melissa Manufacturing showed the following balances at the beginning of December: \[\begin{array} { | l | r | } \hline \text { Account } & \text { Debit } \\ \hline \text { Raw Materials Inventory } & \$ 55,000 \\ \hline \text { Work-in-Process Inventory } & 81,000 \\ \hline \text { Finished Goods Inventory } & 38,000 \\ \hline \text { Manufacturing Overhead } & 17,000 \\ \hline \end{array}\] The following transactions took place during the month: December 2: Issued direct materials $37,000 and indirect materials $4000 to production. December 15: Incurred $6000 and $5000 toward factory's direct labor cost and indirect labor cost,respectively. What should be the balance in the Work-in-Process Inventory following these transactions?

A) $124,000 B) $87,000 C) $75,000 D) $86,000 A) $124,000 B) $87,000 C) $75,000 D) $86,000

Neptune Fabrication Plant has provided you with the following information: \[\begin{array} {| l | l | } \hline\text { Total manufacturing overhead costs estimated at the } & \$ 253,000 \\ \text { beginning of the year } & \\ \hline \begin{array} { l } \text { Total direct labor costs estimated at the beginning of the } \\ \text { year } \end{array} & \$ 128,000 \\ \hline \text { Total direct labor hours estimated at the beginning of the } \\ \text { year } &5500 \text { direct labor hours } \\ \hline \text { Actual manufacturing overhead costs for the year } & \$ 240,000\\ \hline \text { Actual direct labor costs for the year } & \$ 132,000 \\ \hline \text { Actual direct labor hours for the year } &5200 \text { direct labor hours } \\ \hline \end{array}\] The company bases its manufacturing overhead allocation on direct labor hours.What was the unadjusted ending balance in the Manufacturing Overhead account?

A) $20,906 credit balance B) $20,906 debit balance C) $800 credit balance D) $800 debit balance A) $20,906 credit balance B) $20,906 debit balance C) $800 credit balance D) $800 debit balance

Olympia Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,Olympia estimated total manufacturing overhead costs at $1,010,000 and total direct labor costs at $820,000.In June,Job 511 was completed.The details of Job 511 are shown below. \[\begin{array} { | l | l | } \hline \text { Direct materials cost } & \$ 24,000 \\ \hline \text { Direct labor cost } & \$ 13,000 \\ \hline \text { Direct labor hours } & 500 \text { hours } \\ \hline \text { Units of product produced } & \$ 00 \text { hours } \\ \hline \end{array}\] What is the amount of manufacturing overhead costs allocated to Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

A) $16,012 B) $29,561 C) $10,554 D) $19,485 A) $16,012 B) $29,561 C) $10,554 D) $19,485

Exam 19: Job Order Costing

Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours.It has provided the following information for the year: Actual manufacturing overhead costs incurred \ 100,000 Manufacturing overhead costs allocated to production \ 56,000 Actual direct materials cost \ 220,000 Actual direct labor cost \ 40,000 Actual machine hours 32,000 hours Based on the above information,calculate the predetermined overhead allocation rate applied by Felton Quality.(Round your answer to the nearest cent.)

(Multiple Choice)

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Question 21

The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October: Account Debit Raw Materials Inventory \ 31,000 Work-in-Process Inventory 44,000 Finished Goods Inventory 54,000 Manufacturing Overhead 20,000 During the month,direct materials amounting to $21,000 and indirect materials amounting to $6000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?

(Multiple Choice)

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Question 22

The predetermined overhead rate is calculated ________.

(Multiple Choice)

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Question 23

Aaron,Inc.estimates direct labor costs and manufacturing overhead costs for the coming year to be $750,000 and $550,000,respectively.Aaron allocates overhead costs based on machine hours.The estimated total labor hours and machine hours for the coming year are 18,000 hours and 7000 hours,respectively.What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.)

(Multiple Choice)

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Question 24

The amount of taxes and insurance incurred and paid for the plant of a manufacturing company should be debited to the Manufacturing Overhead account.

(True/False)

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Question 25

Why would the manager of a service company need to use job order costing?

(Essay)

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Question 26

On January 1,Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $81,100 and a beginning balance in Finished Goods Inventory of $22,000.During the year,Feldstein incurred manufacturing costs of $351,000. During the year,the following transactions occurred: Job A-12 was completed for a total cost of $121,100 and was sold for $126,700. Job A-13 was completed for a total cost of $201,800 and was sold for $211,000. Job A-15 was completed for a total cost $60,000 but was not sold as of year-end. What was the balance in Finished Goods Inventory at the end of the year?

(Multiple Choice)

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Question 27

The accounts of Melissa Manufacturing showed the following balances at the beginning of December: Account Debit Raw Materials Inventory \ 55,000 Work-in-Process Inventory 81,000 Finished Goods Inventory 38,000 Manufacturing Overhead 17,000 The following transactions took place during the month: December 2: Issued direct materials $37,000 and indirect materials $4000 to production. December 15: Incurred $6000 and $5000 toward factory's direct labor cost and indirect labor cost,respectively. What should be the balance in the Work-in-Process Inventory following these transactions?

(Multiple Choice)

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Question 28

Neptune Fabrication Plant has provided you with the following information: Total manufacturing overhead costs estimated at the \ 253,000 beginning of the year Total direct labor costs estimated at the beginning of the year \ 128,000 Total direct labor hours estimated at the beginning of the year 5500 direct labor hours Actual manufacturing overhead costs for the year \ 240,000 Actual direct labor costs for the year \ 132,000 Actual direct labor hours for the year 5200 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours.What was the unadjusted ending balance in the Manufacturing Overhead account?

(Multiple Choice)

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Question 29

The cost of indirect materials is transferred out of the Manufacturing Overhead account and accumulated in the Raw Materials Inventory account.

(True/False)

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Question 30

Which of the following correctly describes the term cost driver?

(Multiple Choice)

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Question 31

A process costing system is used when a company produces identical units through a series of production steps.

(True/False)

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Question 32

Metropolitan Enterprises reports the following information at December 31: Requirements 1.What is the actual manufacturing overhead of Metropolitan Enterprises? 2.What is the allocated manufacturing overhead? 3.Is manufacturing overhead underallocated or overallocated? By how much?

(Essay)

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Question 33

On January 1,Biden,Inc.'s Work-in-Process Inventory account had a balance of $31,900.During the year,$58,500 of direct materials was placed into production.Manufacturing wages incurred amounted to $85,000,of which $64,500 were for direct labor.Manufacturing overhead is allocated on the basis of 120% of direct labor cost.Actual manufacturing overhead was $90,300.Jobs costing $220,800 were completed during the year.What is the December 31 balance of Work-in-Process Inventory?

(Multiple Choice)

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Question 34

Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system.

(True/False)

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Question 35

Mumbai Travel Services provided the following information: Direct labor rate: $40 per hour Predetermined allocation rate for indirect costs: $22 per direct labor hour If Mumbai Travel records revenue of $350 for a job requiring 5 hours of direct labor,then Mumbai Travel will make a profit of $40.

(True/False)

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Question 36

Which of the following statements is TRUE of costing systems?

(Multiple Choice)

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Question 37

Olympia Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,Olympia estimated total manufacturing overhead costs at $1,010,000 and total direct labor costs at $820,000.In June,Job 511 was completed.The details of Job 511 are shown below. Direct materials cost \ 24,000 Direct labor cost \ 13,000 Direct labor hours 500 hours Units of product produced \ 00 hours What is the amount of manufacturing overhead costs allocated to Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

(Multiple Choice)

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Question 38

At the beginning of the year,Judge Manufacturing had the following account balances: $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | c | } \hline \text { Direct materials placed in production } & \$ 83,500 \\ \hline \text { Direct labor incurred } & 190,500 \\ \hline \text { Manufacturing overhead incurred } & 300,400 \\ \hline \text { Manufacturing overhead allocated to production } & 297,900 \\ \hline \text { Cost of jobs completed and transferred } & 501,700 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | c | } \hline \text { Direct materials placed in production } & \$ 83,500 \\ \hline \text { Direct labor incurred } & 190,500 \\ \hline \text { Manufacturing overhead incurred } & 300,400 \\ \hline \text { Manufacturing overhead allocated to production } & 297,900 \\ \hline \text { Cost of jobs completed and transferred } & 501,700 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | c | } \hline \text { Direct materials placed in production } & \$ 83,500 \\ \hline \text { Direct labor incurred } & 190,500 \\ \hline \text { Manufacturing overhead incurred } & 300,400 \\ \hline \text { Manufacturing overhead allocated to production } & 297,900 \\ \hline \text { Cost of jobs completed and transferred } & 501,700 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | c | } \hline \text { Direct materials placed in production } & \$ 83,500 \\ \hline \text { Direct labor incurred } & 190,500 \\ \hline \text { Manufacturing overhead incurred } & 300,400 \\ \hline \text { Manufacturing overhead allocated to production } & 297,900 \\ \hline \text { Cost of jobs completed and transferred } & 501,700 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | c | } \hline \text { Direct materials placed in production } & \$ 83,500 \\ \hline \text { Direct labor incurred } & 190,500 \\ \hline \text { Manufacturing overhead incurred } & 300,400 \\ \hline \text { Manufacturing overhead allocated to production } & 297,900 \\ \hline \text { Cost of jobs completed and transferred } & 501,700 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ The following additional details are provided for the year: Direct materials placed in production \ 83,500 Direct labor incurred 190,500 Manufacturing overhead incurred 300,400 Manufacturing overhead allocated to production 297,900 Cost of jobs completed and transferred 501,700 The ending balance in the Finished Goods Inventory account is a .

(Multiple Choice)

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Question 39

Ivade,Inc.uses a predetermined overhead allocation rate of $75 per direct labor hour.In January,Ivade completed Job B23,which utilized 20 direct labor hours.Provide the journal entry to allocate overhead to the job.Omit explanation.

(Essay)

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Question 40

Showing 21 - 40 of 191

The predetermined overhead rate is calculated ________.

The amount of taxes and insurance incurred and paid for the plant of a manufacturing company should be debited to the Manufacturing Overhead account.

Why would the manager of a service company need to use job order costing?

The cost of indirect materials is transferred out of the Manufacturing Overhead account and accumulated in the Raw Materials Inventory account.

Which of the following correctly describes the term cost driver?

A process costing system is used when a company produces identical units through a series of production steps.

Metropolitan Enterprises reports the following information at December 31: Requirements 1.What is the actual manufacturing overhead of Metropolitan Enterprises? 2.What is the allocated manufacturing overhead? 3.Is manufacturing overhead underallocated or overallocated? By how much?

Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system.

Mumbai Travel Services provided the following information: Direct labor rate: $40 per hour Predetermined allocation rate for indirect costs: $22 per direct labor hour If Mumbai Travel records revenue of $350 for a job requiring 5 hours of direct labor,then Mumbai Travel will make a profit of $40.

Which of the following statements is TRUE of costing systems?

Ivade,Inc.uses a predetermined overhead allocation rate of $75 per direct labor hour.In January,Ivade completed Job B23,which utilized 20 direct labor hours.Provide the journal entry to allocate overhead to the job.Omit explanation.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

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