24 The Work in Process Inventory account of a manufacturing company has a $10,308 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $3,400 and direct labor cost of $2,200. Therefore, the company's predetermined overhead rate is: 11.25 Multiple Choice points 8 01:02:55 O 138% of direct labor cost. O 65% of direct labor cost. O 47% of direct labor cost. O 155% of direct labor cost. O 214% of direct labor cost.Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $428,000, and direct 26 labor costs to be $2,140,000. Actual overhead costs for the year totaled $401,000, and actual direct labor costs totaled $1,870,000. At year-end, Factory Overhead is: 11.25 points Multiple Choice 01:00:27 O Neither overapplied nor underapplied. O Overapplied by $200,500. O Overapplied by $27,000. O Underapplied by $27,000. O Overapplied by $54,000.A production department's output for the most recent month consisted of 11,500 units completed and transferred to the next stage of production and 11,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 75% complete with respect to both direct materials and conversion costs. 2 7 There were 1300 units in beginning Work in Process inventory, and they were 95% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production forthe month. assuming the company uses the weighted average method. 11.25 points Multiple Choice /' '\\ l 2 01:00:071 \\, ,/ 0 20,190 units. 12,?35 units. 0 11.500 units. 20,125 units. 3 11.565 units. Following is a partial production cost report for Mitchell Manufacturing's Canning department. 29 Equivalent units of production (EUP) Direct Materials Conversion Percent Percent 10 Units Complete EUP Complete EUP points Completed and transferred out 52, 000 100% 52,000 100% 52, 000 00:56:05 Ending Work in Process 18, 000 100% 18,000 80%% 14, 400 70, 000 66, 400 Cost per EUP Direct Materials Conversion Cost of beginning work in process $ 43, 600 $ 63,900 Costs added this period 145 , 500 195, 700 Total costs $ 189, 100 $ 259, 600 : Equivalent units of production 70, 000 66, 400 Cost per EUP $ 2.70 per EUP $ 3.91 per EUP The total conversion costs transferred out of the Canning department equals:29 Multiple Choice 10 $259,624. points O 00:55:54 O $195,700. O $189,100. O $259,600. O $203,320.For each of the following products and services, indicate whether it is more likely produced in a process operation or a job order 32 operation. 1. Ice cream 2. Custom swimming pool 102.5 3. Juice points 4. Guitar picks 00:51:33 5. Wedding reception 6. Shoelaces 7. Luxury yacht 8. Tennis balls 9. Paper towels12 A company manufactures basketball hoops. Compute the total amount of conversion costs from the following costs. Cost item a. Metal for rims, $12,000 11.25 b. Indirect materials, $5,000 points c. Fiberglass backboards, $14,000 00:50:55 d. Insurance on factory, $8,000 e. Assembly worker wages, $20,000 f. Assembly supervisor salary, $9,000 g. Factory utilities, $4,000 h. Nets, $5,000 i. Assembly worker benefits, $6,000\f13 Use the following information to compute the cost of direct materials used for the current year: Beginning of Year End of Year Inventories Raw materials inventory $ 12, 000 $ 15, 000 11.25 points Work in process inventory 24,000 18, 000 Finished goods inventory 17,000 11, 000 00:50:30 Activity during current year Raw materials purchased $ 247,000 Direct labor 188, 000 Factory overhead 78,00013 Multiple Choice 11.25 O $259,000. points 00:50:18 O $262,000. O $241,000. $244,000. O $274,000.Xia Company manufactures a single product. All raw materials used were direct materials. Current information for company follows: 15 Beginning raw materials inventory $ 25,999 Ending raw materials inventory 28,999 Raw material purchases 192,999 xii: Beginning work in process inventory 37,999 Ending work in process inventory 47,999 [\"2 00:49:52} Direct labor 127,999 \\\" Total factory overhead 192,999 Beginning finished goods inventory 77,999 Ending finished goods inventory 57,999 The company's cost ofdirect materials used, cost of goods manufactured and cost of goods sold are: Cost of Cost of Goods Cost of Goods Materials Used Manufactured Sold Option A $192,999 $318,999 $298,999 Option B $195,999 $318,999 $338,999 Option C $99,999 $338,999 $298,999 Option D $99,999 $318,999 $338,999 Option E $195,999 $338,999 $318,999 15 Multiple Choice 11.25 O Option D points 00:49:38 O Option A Option C O Option B O Option E18 A company manufactures basketball hoops. Compute the total amount of prime costs from the following costs. Cost item a. Metal for rims, $12,000 b. Indirect materials, $5,000 11.25 c. Fiberglass backboards, $14,000 points d. Insurance on factory, $8,000 00:49:21 e. Assembly worker wages, $20,000 f. Assembly supervisor salary, $9,000 g. Factory utilities, $4,000 h. Nets, $5,000\f19 A company that uses job order costing reports the following information. Overhead is applied at the rate of 60% of direct materials. The company has no beginning Work in Process or Finished Goods inventories. Jobs 1 and 3 are not finished by the end of March, and Job 2 is finished but not sold by the end of March. Job 1 Job 2 Job 3 Direct materials used $ 10, 400 $ 14, 400 $ 3,400 11.25 Direct labor used $ 18, 400 $ 8,400 $ 6, 400 points 00:48:54 Determine the total dollar amount of Work in Process Inventory at the end of March.\fJob A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation used $3,000 of direct materials and used $4,500 of direct labor. The job was not finished in September. An additional $3,500 of direct materials and $7,500 of direct labor were needed to finish the job in October. The 20 company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B? 11.25 points Multiple Choice 8 00:48:15 O $7,500 O $16,500 O $6,500 $11,000 n $12,000Lowden Company uses job order costing and applies overhead to each job at the rate of 156% of direct materials cost. During the current period, direct labor cost is $71,000 and direct materials cost is $70,000. How much overhead cost should Lowden Company apply in the current period? 21 Multiple Choice 11.25 points 8 00:47:32 $109,200. O $70,000. O $71,000. O $45,513. O $44,872.22 Using the following accounts and a predetermined overhead rate of 150% of direct labor cost, compute the amount of applied overhead. Work in Process Inventory Debit Credit Beginning 35 , 600 11.25 Direct materials 56, 100 points Direct labor .U .V 8 00:47:17 Overhead applied Cost of goods manufacturing 243, 300 Ending 25, 600 Finished Goods Inventory Debit Credit Beginning 5,400 Cost of goods manufacturing 243, 300\fPortside Watercraft uses a job order costing system. During the month Portside purchased $153,000 of raw materials on credit; issued materials to production of $164,000. of which $24000 were indirect. Portside incurred a factory payroll cost of $95,000, of which $25000 was indirect labor. Portside uses a predetermined 2 3 overhead rate of170% ofdirect labor cost. The journal entry to record the application of factory overhead to production is: 1125 t Multiple Chorce porn 5 f' '\\ i 2 00:46:46} \\_ _/ 0 Debit Work in Process Inventory $55,800; credit Factory Overhead $55,800, Debit Work in Process Inventory $95,000; credit Factory Payroll $95,000, Debit Work in Process Inventory $161,500; credit Factory Overhead $161,500, Debit Work in Process Inventory $119,000; credit Factory Overhead $119,000, Debit Factory Overhead $119,000; credit Work in Process inventory $119,000. 0.00