1. Compute the amount of raw materials used during August if $22,000 of raw materials were purchased during the month and the inventories were as follows:

Inventories	Balance August 1	Balance August 31
Raw materials	$2,900	$4,000
Work in process	$12,000	$15,000
Finished goods	$19,000	$11,000

a) $19,000

b) $15,000

c) $20,900

d) $28,900

2. Arvay Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of October. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $68,600 and the total of the credits to the account was $63,600. Which of the following statements is true?

a) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $68,600.

b) Manufacturing overhead for the month was underapplied by $5,000.

c) Manufacturing overhead applied to Work in Process for the month was $68,600.

d) Actual manufacturing overhead incurred during the month was $63,600.

3. The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,063. A total of 33 direct labor-hours and 234 machine-hours were worked on the job. The direct labor wage rate is $18 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $24 per machine-hour. The total cost for the job on its job cost sheet would be:

a) $5,648

b) $5,229

c) $10,418

d) $8,273

4. Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $98,560 and 3,200 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $100,410 and actual direct labor-hours were 3,000. The predetermined overhead rate for the year was closest to:

a) $30.80

b) $29.56

c) $31.50

d) $32.82

5. Job 593 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials	$2,418
Direct labor-hours	74	labor-hours
Direct labor wage rate	$ 13	per labor-hour
Machine-hours	137	machine-hours

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be:

a) $2,622

b) $5,298

c) $3,380

d) $6,138