22-25

22. A company that uses a job order costing system would make the following entry to record the flow of direct materials into production: (A) debit Work in Process Inventory, credit Cost of Goods Sold. B) debit Work in Process Inventory, credit Raw Materials Inventory. C) debit Work in Process Inventory, credit Factory Overhead. D) debit Factory Overhead, credit Raw Materials Inventory. E) debit Finished Goods Inventory, credit Raw Materials Inventory. 23. The Work in Process Inventory account for DG Manufacturing follows, Compute the cost of jobs completed and transferred to Finished Goods Inventory. Beginning WIP Direct materials Direct labor Applied Overhead Total Manufacturing Costs To Finished Goods Ending WIP Work in Process Inventory 4,500 47.100 29,600 15,800 97,000 8.900 The cost of units transferred to finished goods is: A) $97,000. B) $105,900. $88,100. D) $95,200. E) $92,500. 24. A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $20,000? A) $5,000. B) $16,000. $25,000. D) $125,000 E) $250,000 25. The rate established prior to the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the: Predetermined overhead rate. B) Overhead variance rate. C) Estimated labor cost rate. D) Chargeable overhead rate. E) Miscellaneous overhead rate