Exam 2: Job-Order Costing

The actual manufacturing overhead incurred at Hogans Corporation during April was $59,000,while the manufacturing overhead applied to Work in Process was $74,000.The company's Cost of Goods Sold was $289,000 prior to closing out its Manufacturing Overhead account.The company closes out its Manufacturing Overhead account to Cost of Goods Sold.Which of the following statements is true?

The debit to the Manufacturing Overhead account in this entry represents indirect labor costs. -The manufacturing overhead applied is:

Underapplied or overapplied manufacturing overhead represents the difference between actual overhead costs and applied overhead costs.

Under Lamprey Company's job-order costing system,manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate.During January,Lamprey's transactions included the following: Lamprey Company had no beginning or ending inventories.What was the cost of goods manufactured for January?

Sharp Company's records show that overhead was overapplied by $10,000 last year.This overapplied manufacturing overhead was closed out to the Cost of Goods Sold account at the end of the year.In trying to determine why overhead was overapplied by such a large amount,the company has discovered that $6,000 of depreciation on factory equipment was charged to administrative expense in error.Given the above information,which of the following statements is true?

Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor. The labor rate is $6 per hour. By the end of the year, Snappy had worked a total of 45,000 direct labor-hours and had incurred $110,250 actual manufacturing overhead cost. -If Job #334 contained 200 units,the unit product cost on the completed job cost sheet would be:

The debit to the Manufacturing Overhead account in this entry represents indirect labor costs. -The cost of goods sold (after adjustment for underapplied or overapplied manufacturing overhead)is:

Daane Company had only one job in process on May 1. The job had been charged with $1,000 of direct materials, $3,302 of direct labor, and $5,382 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $20.70 per direct labor-hour. During May, the following activity was recorded: Work in process inventory on May 30 contains $2,921 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. -The amount of direct materials cost in the May 30 work in process inventory account was:

Martinez Aerospace Company uses a job-order costing system.The direct materials for Job #045391 were purchased in July and put into production in August.The job was not completed by the end of August.At the end of August,in what account would the direct material cost assigned to Job #045391 be located?

Gressett Inc. has provided the following data for the month of April. 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 $6,000. 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 April after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

During July at Tiner Corporation,$74,000 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 $7,000.The journal entry to record this requisition would include a debit to Manufacturing Overhead of:

Washtenaw Corporation uses a job-order costing system.The following data are for last year: Washtenaw applies overhead using a predetermined rate based on direct labor-hours.What predetermined overhead rate was used last year?

Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company's predetermined overhead rate for the year was $24.70 per machine-hour. -The applied manufacturing overhead for the year was closest to:

Pinnini Co.uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Last year,Pinnini Company incurred $225,000 in actual manufacturing overhead cost.The Manufacturing Overhead account showed that overhead was overapplied $14,500 for the year.If the predetermined overhead rate was $5.00 per direct labor-hour,how many hours did the company work during the year?

Kirson Corporation incurred $89,000 of actual Manufacturing Overhead costs during December.During the same period,the Manufacturing Overhead applied to Work in Process was $92,000.The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

Daane Company had only one job in process on May 1. The job had been charged with $1,000 of direct materials, $3,302 of direct labor, and $5,382 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $20.70 per direct labor-hour. During May, the following activity was recorded: Work in process inventory on May 30 contains $2,921 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. -The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the month would include a:

Staniszewski Inc. has provided the following data for the month of March. 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 March after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

In a job-order costing system,indirect materials that have been previously purchased and that are used in production are recorded as a debit to:

Advertising costs should be charged to the Manufacturing Overhead account.

Wedd Corporation had $35,000 of raw materials on hand on May 1.During the month,the company purchased an additional $68,000 of raw materials.During May,$92,000 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 $5,000.The debits to the Work in Process account as a consequence of the raw materials transactions in May total: