1. Which of the following costs would not be classifiedas factory overhead?

a. Property taxes on maintenance machinery.

b. Expired insurance on factory equipment.

c. Wages of the factory janitor.

d. Metal doorknobs used on wood cabinets produced.

e. Small tools used in production.

2. A manufacturing company has a beginning finishedgoods inventory of $14,600, raw material purchases of $18,000, costof goods manufactured of $32,500, and an ending finished goodsinventory of $17,800. The cost of goods sold for this companyis:

a. $21,200

b. $29,300

c. $32,500

d. $47,100

e. $27,600.

3. The following information is available for the yearended December 31: The amount of raw materials used in productionfor the year is:

a. $4,100.

b. $5,100.

c. $3,500.

d. $6,500.

e. $4,000

4. Bard Manufacturing uses a job order cost accountingsystem. During one month Bard purchased $198,000 of raw materialson credit; issued materials to production of $195,000 of which$30,000 were indirect. Bard incurred a factory payroll of $150,000,paid in cash, of which $40,000 is classified as indirect labor.Bard uses a predetermined overhead application rate of 150% ofdirect labor cost. The journal entry to record the purchase ofmaterials is:

a. Debit Raw Materials Inventory $198,000; credit AccountsPayable $198,000.

b. Debit Goods in Process Inventory $198,000; credit AccountsPayable $198,000.

c. Debit Raw Materials Inventory $198,000; credit Goods inProcess Inventory $198,000.

d. Debit Goods in Process Inventory $195,000; credit RawMaterials Inventory $195,000.

e. Debit Raw Materials Inventory $198,000; credit Finished GoodsInventory $198,000.

5. Bard Manufacturing uses a job order cost accountingsystem. During one month Bard purchased $198,000 of raw materialson credit; issued materials to production of $195,000 of which$30,000 were indirect. Bard incurred a factory payroll of $150,000,paid in cash, of which $40,000 is classified as indirect labor.Bard uses a predetermined overhead application rate of 150% ofdirect labor cost. The journal entry to record the issuance ofmaterials to production is:

a. Debit Raw Materials Inventory $195,000; credit AccountsPayable $195,000.

b. Debit Goods in Process Inventory $195,000; credit RawMaterials Inventory $195,000.

c. Debit Raw Materials Inventory $195,000; credit Goods inProcess Inventory $195,000.

d. Debit Goods in Process Inventory $165,000; debit FactoryOverhead $30,000; credit Raw Materials Inventory $195,000.

e. Debit Finished Goods Inventory $195,000; credit Raw MaterialsInventory $195,000.

6. Bard Manufacturing uses a job order cost accountingsystem. During one month Bard purchased $198,000 of raw materialson credit; issued materials to production of $195,000 of which$30,000 were indirect. Bard incurred a factory payroll of $150,000,paid in cash, of which $40,000 is classified as indirect labor.Bard uses a predetermined overhead application rate of 150% ofdirect labor cost. The journal entry to record the application offactory overhead to production is:

a. Debit Goods in Process Inventory $225,000; credit FactoryOverhead $225,000.

b. Debit Goods in Process Inventory $165,000; credit FactoryOverhead $165,000.

c. Debit Factory Payroll $150,000; credit Goods in ProcessInventory $150,000.

d. Debit Factory Overhead $165,000; credit Goods in ProcessInventory $165,000.

e. Debit Goods in Process Inventory $165,000; credit FactoryPayroll $165,000.

7. Bard Manufacturing uses a job order cost accountingsystem. During one month Bard purchased $198,000 of raw materialson credit; issued materials to production of $195,000 of which$30,000 were indirect. Bard incurred a factory payroll of $150,000,paid in cash, of which $40,000 is classified as indirect labor.Bard uses a predetermined overhead application rate of 150% ofdirect labor cost. Bard's beginning and ending Goods in ProcessInventory are $15,500 and $27,000 respectively. Compute the cost ofproduct transferred to Finished Goods Inventory:

a. $558,500.

b. $440,000.

c. $413,000.

d. $428,500.

e. $415,000.