1. Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $ 6,000 Direct labor $ 20,000 Rent on factory building $ 15,000 Sales salaries $ 25,000 Depreciation on factory equipment $ 8,000 Indirect labor $ 12,000 Production supervisor's salary $ 15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be: A) $2.50 per direct labor-hour B) $2.79 per direct labor-hour C) $3.00 per direct labor-hour D) $4.00 per direct labor-hour 2. During July at Loeb Corporation, S83,000 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 $4,000. The journal entry to record the requisition from the storeroom would include a: A) debit to Work in Process of $79.000 B) debit to Work in Process of $83,000 C) credit to Manufacturing Overhead of $4,000 D) debit to Raw Materials of $83,000 3. All of the following are examples of product costs except: A) depreciation on the company's retail outlets. B) salary of the plant manager. C) insurance on the factory equipment. D) rental costs of factory equipment. 4. Emigh Corporation's cost of goods manufactured for the just completed month was $146,000 and its overhead was overapplied by $5,000. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $37,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much was the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $144,000 B) S146,000 C) $181,000 D) $139,000 5. Kneeland Corporation has provided the following information: Cost per Period Cost per Unit $ 6,80 S 4.15 $ 1.65 $ 121,500 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $ $ 1.00 0.50 $ 40,500 Ir 10,000 units are produced, the total amount of manufacturing overhead cost is closest A) $186,000 B) $138.000 C) $162,000 D) $150,000 6. During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7.000 of indirect labor costs. The journal entry to record the accrual of these wages would include A) debit to Work in Process of $67,000. B) credit to Work in Process of $74,000. C) debit to Work in Process of $74,000. D) credit to Work in Process of $67,000. 10. Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Direct labor cost $ 574,000 Manufacturing overhead: Indirect labor cost $ 163,000 $ 584,000 Other manufacturing overhead costs incurred What is the journal entry to record the direct and indirect labor costs incurred during the year? 737,000 Wages Payable Direct Labor Manufacturing Overhead B) 574,000 163,000 Work in Process Manufacturing Overhead Wages Payable 574,000 163,000 737,000 737,000 Wages Payable Work in Process Manufacturing Overhead D) 574,000 163,000 Direct Labor Manufacturing Overhead Wages Payable 574,000 163,000 737,000 11. Tatar Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Beginning inventories: Raw materials Work in process $ 37,000 $ 15,000 Results of operations: Raw materials purchased on account Raw materials (all direct) requisitioned for use in production $ 480,000 $ 434,000 How much is the ending balance in the Raw Materials inventory account? A) $37,000 B) $120,000 C) $83,000 D) S517,000 12. In a job-order costing system that is based on machine-hours, which of the following formulas is correct? A) Predetermined overhead rate - Actual manufacturing overhead + Actual machine- hours Estimated machine B) Predetermined overhead rate - Actual manufacturing overhead hours C) Predetermined overhead rate Estimated manufacturing overhead Estimated machine-hours D) Predetermined overhead rate - Estimated manufacturing overhead + Actual machine hours 13. Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. 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: A) debit to Manufacturing Overhead of $92,000 B) debit to Work in Process of $90,000 C) credit to Manufacturing Overhead of $92,000 D) credit to Work in Process of $90,000 14. Ruddick Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Cost of goods manufactured Cost of goods sold (unadjusted) $ 1,486,000 S 1,337,000 The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is: A) Finished Goods Work in Process 1,337,000 1,337,000 1,486,000 Finished Goods Work in Process 1,486,000 1,337,000 Work in Process Finished Goods 1,337,000 D) 1,486,000 Work in Process Finished Goods 1,486,000 Problem# 1 (10 points) Complete the schedule below of the company's total costs and costs per unit: Units produced and sold 30,000 40,000 50,000 $180,000 (D) 300,000 (E) $480,000 (F) Total costs: Variable cost. Fixed cost. Total cost .. Costs per unit: Variable cost... Fixed cost.... Total cost per unit...... DIE OZ3 Answer: Problem#2 (10 points) The Simkins Corporation uses a job-order costing system. The following activities took place during the month of May: a. b. $40,000 $35,000 Raw materials purchased Raw materials (all direct) used in production Salaries and wages costs: Direct labor cost Indirect labor cost Sales salaries Factory utility costs $60,000 $30,000 $25,000 $15,000 d. Required: Prepare journal entries to record the information given above. Key your entries by the letters a through d. Answer: Problem# 3 (10 points) Rochford Corporation has provided the following data concerning last month's operations. Purchases of raw materials Indirect materials included in manufacturing overhead Direct labor cost Manufacturing overhead cost applied to Work in Process $25,000 $5,000 $58,000 $73,000 Raw materials inventory Work in process inventory Beginning Ending $11,000 $21,000 $49,000 $74,000 Required: Determine the cost of goods manufactured for the month. Answer: If you handed in the in-class problem last week, then you do not have to complete Problemi 4. Problemi 4 (10 points) Weakley Corporation uses a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $358,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $382.000 and 18,300 total machine-hours during the period. Required: Determine the amount of manufacturing overhead that would have been applied to all jobs during the period. Answer: 1. Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $ 6,000 Direct labor $ 20,000 Rent on factory building $ 15,000 Sales salaries $ 25,000 Depreciation on factory equipment $ 8,000 Indirect labor $ 12,000 Production supervisor's salary $ 15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be: A) $2.50 per direct labor-hour B) $2.79 per direct labor-hour C) $3.00 per direct labor-hour D) $4.00 per direct labor-hour 2. During July at Loeb Corporation, S83,000 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 $4,000. The journal entry to record the requisition from the storeroom would include a: A) debit to Work in Process of $79.000 B) debit to Work in Process of $83,000 C) credit to Manufacturing Overhead of $4,000 D) debit to Raw Materials of $83,000 3. All of the following are examples of product costs except: A) depreciation on the company's retail outlets. B) salary of the plant manager. C) insurance on the factory equipment. D) rental costs of factory equipment. 4. Emigh Corporation's cost of goods manufactured for the just completed month was $146,000 and its overhead was overapplied by $5,000. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $37,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much was the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $144,000 B) S146,000 C) $181,000 D) $139,000 5. Kneeland Corporation has provided the following information: Cost per Period Cost per Unit $ 6,80 S 4.15 $ 1.65 $ 121,500 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $ $ 1.00 0.50 $ 40,500 Ir 10,000 units are produced, the total amount of manufacturing overhead cost is closest A) $186,000 B) $138.000 C) $162,000 D) $150,000 6. During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7.000 of indirect labor costs. The journal entry to record the accrual of these wages would include A) debit to Work in Process of $67,000. B) credit to Work in Process of $74,000. C) debit to Work in Process of $74,000. D) credit to Work in Process of $67,000. 10. Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Direct labor cost $ 574,000 Manufacturing overhead: Indirect labor cost $ 163,000 $ 584,000 Other manufacturing overhead costs incurred What is the journal entry to record the direct and indirect labor costs incurred during the year? 737,000 Wages Payable Direct Labor Manufacturing Overhead B) 574,000 163,000 Work in Process Manufacturing Overhead Wages Payable 574,000 163,000 737,000 737,000 Wages Payable Work in Process Manufacturing Overhead D) 574,000 163,000 Direct Labor Manufacturing Overhead Wages Payable 574,000 163,000 737,000 11. Tatar Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Beginning inventories: Raw materials Work in process $ 37,000 $ 15,000 Results of operations: Raw materials purchased on account Raw materials (all direct) requisitioned for use in production $ 480,000 $ 434,000 How much is the ending balance in the Raw Materials inventory account? A) $37,000 B) $120,000 C) $83,000 D) S517,000 12. In a job-order costing system that is based on machine-hours, which of the following formulas is correct? A) Predetermined overhead rate - Actual manufacturing overhead + Actual machine- hours Estimated machine B) Predetermined overhead rate - Actual manufacturing overhead hours C) Predetermined overhead rate Estimated manufacturing overhead Estimated machine-hours D) Predetermined overhead rate - Estimated manufacturing overhead + Actual machine hours 13. Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. 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: A) debit to Manufacturing Overhead of $92,000 B) debit to Work in Process of $90,000 C) credit to Manufacturing Overhead of $92,000 D) credit to Work in Process of $90,000 14. Ruddick Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Cost of goods manufactured Cost of goods sold (unadjusted) $ 1,486,000 S 1,337,000 The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is: A) Finished Goods Work in Process 1,337,000 1,337,000 1,486,000 Finished Goods Work in Process 1,486,000 1,337,000 Work in Process Finished Goods 1,337,000 D) 1,486,000 Work in Process Finished Goods 1,486,000 Problem# 1 (10 points) Complete the schedule below of the company's total costs and costs per unit: Units produced and sold 30,000 40,000 50,000 $180,000 (D) 300,000 (E) $480,000 (F) Total costs: Variable cost. Fixed cost. Total cost .. Costs per unit: Variable cost... Fixed cost.... Total cost per unit...... DIE OZ3 Answer: Problem#2 (10 points) The Simkins Corporation uses a job-order costing system. The following activities took place during the month of May: a. b. $40,000 $35,000 Raw materials purchased Raw materials (all direct) used in production Salaries and wages costs: Direct labor cost Indirect labor cost Sales salaries Factory utility costs $60,000 $30,000 $25,000 $15,000 d. Required: Prepare journal entries to record the information given above. Key your entries by the letters a through d. Answer: Problem# 3 (10 points) Rochford Corporation has provided the following data concerning last month's operations. Purchases of raw materials Indirect materials included in manufacturing overhead Direct labor cost Manufacturing overhead cost applied to Work in Process $25,000 $5,000 $58,000 $73,000 Raw materials inventory Work in process inventory Beginning Ending $11,000 $21,000 $49,000 $74,000 Required: Determine the cost of goods manufactured for the month. Answer: If you handed in the in-class problem last week, then you do not have to complete Problemi 4. Problemi 4 (10 points) Weakley Corporation uses a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $358,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $382.000 and 18,300 total machine-hours during the period. Required: Determine the amount of manufacturing overhead that would have been applied to all jobs during the period