7.The following entry would be used to record depreciation on manufacturing equipment:

Manufacturing Overhead	XXX
Accumulated Depreciation		XXX

A. True

B. False

8. If a company uses a predetermined overhead rate, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead account and will be recorded on the job cost sheets.

a. True

b. False

Weatherhead Inc. has provided the following data for the month of March. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

	Work In Process			Finished Goods			Cost of Goods Sold			Total
Direct materials	$	4,240		$	14,720		$	41,880		$	60,840
Direct labor		10,440			29,440			83,840			123,720
Manufacturing overhead applied		5,830			12,010			34,980			52,820
Total	$	20,510		$	56,170		$	160,700		$	237,380

Manufacturing overhead for the month was overapplied by $3,200.

The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.

The work in process inventory at the end of March after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: Round intermediate percentage computations to the nearest whole percent.)

a.$20,818

b.$20,747

c.$20,158

d.$20,229

10.

Tiehen Corporation uses a job-order costing system to assign manufacturing costs to jobs. At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold. Its balance sheet on April 1 appears below:

Tiehen Corporation Balance Sheet April 1
Assets:
Cash				$	10,800
Raw materials	$	4,800
Work in process		15,800
Finished goods		19,800			40,400
Property, plant, and equipment (net)					229,800
Total assets				$	281,000
Liabilities and Stockholders' Equity:
Accounts payable				$	15,400
Retained earnings					265,600
Total liabilities and stockholders' equity				$	281,000

Summaries of the transactions completed during April appear below:

(1)	Raw materials purchased on account	$	66,800
(2)	Raw materials used in production (direct materials)	$	50,800
(3)	Raw materials used in production (indirect materials)	$	7,400
(4)	Direct labor paid in cash	$	95,800
(5)	Indirect labor paid in cash	$	25,800
(6)	Selling and administrative salaries paid in cash	$	30,800
(7)	Factory utility costs (on account)	$	12,800
(8)	Depreciation on PP&E--manufacturing equipment	$	10,800
(9)	Depreciation on PP&E--selling and administration	$	2,400
(10)	Advertising expenses paid in cash	$	15,800
(11)	Manufacturing overhead applied to production	$	59,400
(12)	Cost of goods manufactured	$	196,800
(13)	Cash sales	$	285,000
(14)	Cost of goods sold	$	205,800
(15)	Cash payments to creditors	$	81,800
(16)	Overapplied (underapplied) overhead		?

Required: Complete the spreadsheet below. (Negative or Deductible amounts should be entered with a minus sign.) Work in Finished Manufacturing Raw PP&E Accounts Retained Cash Transactions (net) Earninge Materlals Process Goode Overhead Payable Beginning balances, April 1 (1) Raw materials purchaseed on acoount (2) Rw materials used in produckn (direct materials) (3) Raw malerials used in producion (indirect malerials) (Indiect labor paid in cest (eSelling and administrative salaries paid in cash (7Factary uility csts (an account) (8Depreciation an PP&E-manufacturing equipment (9) Deprecletion on PP&E-Belling and adminletration (10) Advertising expenses paid in cash (11) Manufacturing overhead applied to production 12) Cost f goads manufacturnd 13) Cash sales (14) Cost of poods sold (15) Cash payments to creditors 16) Overapplied (underappliad) overhead Ending balances at April 30