1a. Omaha Industries is a manufacturer that uses job-order costing and applies overhead to production using a single factory wide overhead rate.

For purposes of this question only, assume Omaha applies overhead to production jobs using pounds of direct materials as its cost driver.

Omaha provides you with the following budgeted and actual information regarding its 20X1 manufacturing operations:

Additionally, assume for this question that Omaha reported the following account balances:

What was the value of Omahas cost of goods manufactured for the twelve months ended 12/31/20X1?

Group of answer choices

$2,858, 683

$2,845,400

$2,874,200

$2,920,400

None of the answer choices provided are correct.

$2,904,200

1b. Which of the following account balances would not be closed at year-end by debiting the account?

Group of answer choices

Interest revenue.

Gain on sale of building.

Sales revenue.

Sales Returns & Allowances

All of the accounts listed would be be closed at year-end by debiting the account.

Budgeted Actual Total Factory Overhead $1,050,000 $1,080,000 Direct Materials ("DM") Requisitioned $625,000 $574,200 Pounds of DM Requisitioned 25,000 26,100 Direct Labor Dollars $1,250,000 $1,242.000 Direct Labor Hours 28,000 27.600 Machine Hours 35.000 36,500 Additionally, assume for this question that Omaha reported the following account balances: Reported Account Balances 12/31/20X0 12/31/20X1 Raw Materials $280,000 $375,800 Work in Process $1,575,000 $1,567,000 Finished Goods $325,000 $400,000