| | sales exceed production for that period. 3. A company manufactures wallets. Last month's costs were as listed below: | Direct materials | $246,000 | | Direct labor | $175,000 | | Manufacturing Overhead | $73,000 | What were the conversion costs for the month? | | $248,000 | | | $494,000 | | | $421,000 | | | $246,000 4. Which of the following are classified as manufacturing overhead? | | Indirect labor and indirect materials | | | Direct materials and direct labor | | | Factory rent and direct labor | | | All materials 5.Baxter Company produces Frisbees using a three-step sequential process that includes molding, coloring, and finishing. At what stage would the sets be allocated Manufacturing Overhead? | | When the Frisbees are in WIP Inventory-Coloring | | | When the Frisbees are in WIP Inventory-Finishing | | | When the Frisbees are in WIP Inventory-Molding | | | All of the above 6.Which method are managers using when they use their judgment to classify costs as variable, fixed, or mixed? | | Low-high method | | | Regression analysis | | | Account analysis | | | High-low method 7.Which of the following is not a way in which management can use job cost information? | | Determining the balance in raw materials inventory | | | Preparing the financial statements | | | Assessing and comparing the profitability of each product type | | | Using the cost information in determining the bid price for custom orders 8.A factory janitor's wages would be classified as _________ when determining the cost of a manufactured product. | | an indirect cost | | | a period cost | | | a direct cost | | | none of the above 9. Tall Timbers reports the following data for its first year of operation: | Work in process inventory, beginning | $ 0 | | Work in process inventory, ending | $50,200 | | Manufacturing overhead | $25,400 | | Direct materials used | $7,700 | | Direct Labor | $60,000 | | Finished goods inventory, beginning | $ 0 | | Finished goods inventory, ending | $20,000 | | Cost of goods manufactured | $42,900 | What is the cost of goods sold? | | $22,900 | | | $76,000 | | | $73,100 | | | $42,900 10. A deodorant manufacturer offers the following information: | WIP Inventory, January 1 | 0 units | | Units started | 33,600 units | | Units completed and transferred out | 11,200 units | | WIP Inventory, December 31 | 22,400 units | | Direct materials | $276,480 | | Direct labor | $585,000 | | Manufacturing Overhead | $328,920 | The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. On December 31, what are the total equivalent units for direct materials? | | 47,040 | | | 33,600 | | | 20,160 | | | 24,640 11. How is the cost of indirect materials used in the factory recorded? | | Credit to Raw Materials Inventory account | | | Credit to Manufacturing Overhead account | | | Credit to Direct Materials Expense account | | | Credit to Work-in-Process Inventory account 12. XYZ uses job costing. Actual manufacturing overhead for the period is $20,300 while allocated manufacturing overhead is $18,200. What entry will close the manufacturing overhead balance? | | Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $2,100. | | | Debit the Manufacturing Overhead account and credit the Work-in-Process account for $2,100. | | | Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $2,100. | | | Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $2,100. | | | | | | | | | | |
