Assume that a company uses direct labor dollars as the allocation base to compute its predetermined plantwide overhead rate of 140%. Also, assume the following information from the company's schedule of cost of goods manufactured, schedule of cost of goods sold, and its income statement: Direct labor Cost of goods manufactured $ 65,000 Actual manufacturing overhead $260,000 Selling and administrative expense $84,000 $85,000 If the beginning work-in-process inventory was $10,000, the ending work in process inventory was $5,000, and finished goods inventory decreased by $4,000 during the period, then what is the direct materials used in production? Multiple Choice $89.000 $106.000 599.000 c $109.000 Which of the following statements is true for a company that maintains beginning and ending work in process and finished goods inventories Multiple Choice of the company closes its underapplied overhead entirely to Cost of Goods Sold it will cause net operating income to be the same as the net operating income reported if the company had closed its underapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. if the company closes its underapplied overhead entirely to Cost of Goods Sold it will cause the gross margin to be higher than the gross margin reported if the company had closed its underapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold If the company closes its underapplied overhead entirely to Cost of Goods Sold it will cause net operating income to be higher than the net operating income reported if the company had closed its underapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold If the company closes its underapplied overhead entirely to Cost of Goods Sold it will cause net operating income to be lower than the net operating income reported if the company had closed its underapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Assume that a company uses direct labor dollars as the allocation base to compute its predetermined plantwide overhead rate of 140%. Also, assume the following information from the company's schedule of cost of goods manufactured, schedule of cost of goods sold, and its income statement: Direct labor Cost of goods manufactured $ 65,000 Actual manufacturing overhead $260,000 Selling and administrative expense $84,000 $75,400 If the beginning finished goods inventory was $10,000, the ending finished goods inventory was $2,000, and net operating income was $8,000 then what is the sales? Multiple Choice $344.400 $314.400 $364.400 $324,400 At the end of the year, a company's applied overhead is distributed among its inventory accounts and cost of goods sold as follows: Work in Process Finished Goods Cost of Goods Sold Applied overhead $ 20,000 40,000 340,000 $400,000 if the company has $12,000 of underapplied overhead and it closes this amount proportionally to Work in Process, Finished Goods, and Cost of Goods Sold, then which of the following statements is true? Multiple Choice The entry to dispose of the underapplied overhead will include a debit to Finished Goods for $1.200 The entry to dispose of the underapplied overhead will include a debit to Manufacturing Overhead for $12,000, The entry to dispose of the underapplied overhead will include a credit to Cost of Goods Sold for $10.200. O The entry to dispone whead will include a debit to Cost of Goods Sold for $12,000
