Question 1

During May, Sharpton Corporation recorded the following:    Required:
Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, and Manufacturing Overhead, and Cost of Goods Sold.Record the beginning balances and each of the transactions listed above.Finally, determine the ending balances.

Accepted Answer

The answer of During May, Sharpton Corporation recorded the following:...

Question 2

Cienfuegos Corporation has provided the following data concerning last month's operations.   The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Accepted Answer

A)  $157,000
B)  $154,000
C)  $161,000
D)  $197,000E) None of the above
F) C) and D)

Question 3

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:

Accepted Answer

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-hourE) B) and C)
F) All of the above

Question 4

The direct materials cost in the May 1 Work in Process inventory account totaled:

Accepted Answer

A)  $9,900
B)  $5,400
C)  $9,000
D)  $4,500E) All of the above
F) C) and D)

Question 5

Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows:

Accepted Answer

A)  $31,500
B)  $29,500
C)  $27,000
D)  $33,000E) None of the above
F) All of the above

Question 6

Which of the following statements is true? I.	Overhead can be applied slowly as a job is worked on. II.	Overhead can be applied when the job is completed. III.	Overhead should be applied to any job not completed at year-end in order to properly value the work in process inventory.

Accepted Answer

A)  Only statement I is true.
B)  Only statement II is true.
C)  Both statements I and II are true.
D)  Statements I, II, and III are all true.E) A) and D)
F) A) and B)

Question 7

The Cost of Goods Manufactured was:

Accepted Answer

A)  $19,900
B)  $21,700
C)  $41,600
D)  $7,700E) B) and C)
F) B) and D)

Question 8

Fossil Manufacturing uses a predetermined overhead rate of $17.80 per direct labor-hour.This predetermined rate was based on 11,000 estimated direct-labor-hours and $195,800 of estimated total manufacturing overhead.The company incurred actual manufacturing overhead costs of $194,000 and 10,500 direct labor-hours.
Required:
a.Determine the amount of underapplied or overapplied manufacturing overhead for the period.
b.Assuming that the company closed manufacturing overhead to cost of goods sold, make the journal entry to close manufacturing overhead.
c.What is the effect of this entry on the company's gross margin?

Accepted Answer

a.Overhead over or underapplie...

Question 9

The balance in the Finished Goods inventory account at the beginning of the year was:

Accepted Answer

A)  $13,500
B)  $36,700
C)  $500
D)  $13,000E) B) and C)
F) C) and D)

Question 10

In the Schedule of Cost of Goods Sold, Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory.

Accepted Answer

A) True 
 B)False  True

Question 11

The applied manufacturing overhead for the year was closest to:

Accepted Answer

A)  $229,586
B)  $234,600
C)  $242,006
D)  $236,854E) A) and D)
F) None of the above

Question 12

Pine Publishing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.At the beginning of the year the Corporation estimated its total manufacturing overhead cost at $500,000 and its direct labor-hours at 125,000 hours.The actual overhead cost incurred during the year was $450,000 and the actual direct labor-hours incurred on jobs during the year was 115,000 hours.The manufacturing overhead for the year would be:

Accepted Answer

A)  $10,000 underapplied.
B)  $10,000 overapplied.
C)  $50,000 underapplied.
D)  $50,000 overapplied.E) B) and D)
F) C) and D)

Question 13

The ending balance in the Work in Process account is closest to:

Accepted Answer

A)  $110,000
B)  $120,000
C)  $100,000
D)  $90,000E) A) and B)
F) A) and C)

Question 14

How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Accepted Answer

A)  $123,000
B)  $171,000
C)  $136,000
D)  $117,000E) C) and D)
F) A) and B)

Question 15

The manufacturing overhead is:

Accepted Answer

A)  $26,000 Underapplied
B)  $4,000 Underapplied
C)  $4,000 Overapplied
D)  $26,000 OverappliedE) None of the above
F) C) and D) C

Question 16

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were:  The overapplied or underapplied manufacturing overhead for the year was:

Accepted Answer

A)  $3,000 underapplied
B)  $3,000 overapplied
C)  $12,000 underapplied
D)  $12,000 overappliedE) C) and D)
F) A) and D)

Question 17

The amount of direct labor cost in the May 30 Work in Process inventory was:

Accepted Answer

A)  $4,200
B)  $5,250
C)  $4,950
D)  $9,450E) B) and D)
F) None of the above B

Question 18

How much is the ending balance in the Raw Materials inventory account?

Accepted Answer

A)  $97,000
B)  $585,000
C)  $47,000
D)  $50,000E) All of the above
F) B) and C)

Question 19

Borchardt Corporation has provided the following data concerning last month's operations.   How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

Accepted Answer

A)  $235,000
B)  $178,000
C)  $173,000
D)  $169,000E) None of the above
F) B) and D)

Question 20

Chipata Corporation applies manufacturing overhead to jobs on the basis of machine-hours.Chipata estimated 25,000 machine-hours and $10,000 of manufacturing overhead cost for the year.During the year, Chipata incurred 26,200 machine-hours and $11,300 of manufacturing overhead.What was Chipata's underapplied or overapplied overhead for the year?

Accepted Answer

A)  $480 overapplied
B)  $820 underapplied
C)  $1,300 overapplied
D)  $1,300 underappliedE) A) and C)
F) A) and B)

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

During May, Sharpton Corporation recorded the following: Required: Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, and Manufacturing Overhead, and Cost of Goods Sold.Record the beginning balances and each of the transactions listed above.Finally, determine the ending balances.

Correct Answer
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Cienfuegos Corporation has provided the following data concerning last month's operations. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Correct Answer
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Correct Answer
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The direct materials cost in the May 1 Work in Process inventory account totaled:

Correct Answer
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Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows:

Correct Answer
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Which of the following statements is true? I. Overhead can be applied slowly as a job is worked on. II. Overhead can be applied when the job is completed. III. Overhead should be applied to any job not completed at year-end in order to properly value the work in process inventory.

Correct Answer
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The Cost of Goods Manufactured was:

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a.Overhead over or underapplie...
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The balance in the Finished Goods inventory account at the beginning of the year was:

Correct Answer
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In the Schedule of Cost of Goods Sold, Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory.

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True

The applied manufacturing overhead for the year was closest to:

Correct Answer
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The ending balance in the Work in Process account is closest to:

Correct Answer
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How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

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The manufacturing overhead is:

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C

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: The overapplied or underapplied manufacturing overhead for the year was:

Correct Answer
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The amount of direct labor cost in the May 30 Work in Process inventory was:

Correct Answer
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B

How much is the ending balance in the Raw Materials inventory account?

Correct Answer
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Borchardt Corporation has provided the following data concerning last month's operations. How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

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

Correct AnswerverifiedShow Answer

Cienfuegos Corporation has provided the following data concerning last month's operations. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The direct materials cost in the May 1 Work in Process inventory account totaled:

Correct AnswerverifiedShow Answer

Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows:

Correct AnswerverifiedShow Answer

Which of the following statements is true? I. Overhead can be applied slowly as a job is worked on. II. Overhead can be applied when the job is completed. III. Overhead should be applied to any job not completed at year-end in order to properly value the work in process inventory.

Correct AnswerverifiedShow Answer

The Cost of Goods Manufactured was:

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Overhead over or underapplie...View AnswerShow Answer

The balance in the Finished Goods inventory account at the beginning of the year was:

Correct AnswerverifiedShow Answer

In the Schedule of Cost of Goods Sold, Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory.

Correct AnswerverifiedTrue

The applied manufacturing overhead for the year was closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The ending balance in the Work in Process account is closest to:

Correct AnswerverifiedShow Answer

How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Correct AnswerverifiedShow Answer

The manufacturing overhead is:

Correct AnswerverifiedC

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: The overapplied or underapplied manufacturing overhead for the year was:

Correct AnswerverifiedShow Answer

The amount of direct labor cost in the May 30 Work in Process inventory was:

Correct AnswerverifiedB

How much is the ending balance in the Raw Materials inventory account?

Correct AnswerverifiedShow Answer

Borchardt Corporation has provided the following data concerning last month's operations. How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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a.Overhead over or underapplie...
View Answer

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True

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C

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B

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