Benson Inc.'s accounting records reflect the following inventories: Jan. 1. 20X5 Dec. 31. 20X5 Raw materials inventory $80,000 $64,000 Work in process inventory 104,000 116,000 Finished goods inventory 100,000 92,000 During 20X5, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $100,000, and incurred manufacturing overhead totaling $128,000. How much is total manufacturing costs incurred during 20X5 for Benson? 1) $1,392,000 2) $1,400,000 3) $1,388,000 4) $1,404,000 Benson Inc.'s accounting records reflect the following inventories: Jan. 1.20x5 Dec. 31, 20X5 Raw materials inventory $80,000 $64,000 Work in process inventory 104,000 116,000 Finished goods inventory 100,000 92,000 During 20X5, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $100,000, and incurred manufacturing overhead totaling $128,000. Assume Benson's cost of goods manufactured for 20x5 amounted to $1,360,000. How much would it report as cost of goods sold for the year? 1) $1,400,000 2) $1,460,000 3) $1,352,000 04) $1,368,000 Question 20 (2.5 points) Factory utilities $ 13,500 Direct labor $79,100 Depreciation on factory equipment 12,650 Factory manager's salary 8,000 Factory repairs 2,000 Indirect factory labor 48,900 Administrative office supplies used 2.640 Indirect materials 70,800 Sales salaries 48,400 Direct materials used 157,600 Advertising 23,000 How much is the manufacturing overhead in May? 1) $145,850 2) $36,150 3) $155,850 4) $158,490 Factory utilities $ 13,500 Direct labor $79,100 Depreciation on 12,650 Factory manager's factoryequipment salary 8,000 Factory repairs 2,000 > Indirect factory labor 48,900 Administrative office 2,640 supplies used Indirect materials 70,800 Sales salaries 48,400 Direct materials 157,600 Advertising used 23,000 Assume the manufacturing overhead in May is $160,000, how much would be the total product cost? 1) $236,700 O2) $398,850 3) $396,700 4) $475,840 Factory utilities $ 13,500 Direct labor $79,100 8,000 Depreciation on 12,650 Factory manager's factoryequipm salary ent Factory repairs 2,000 Indirect factory 48,900 Administrative office labor supplies used 2,640 Indirect materials 70,800 Sales salaries 48,400 Direct materials 157,600 Advertising used 23,000 How much is the total period cost in May? 1) $25,640 2) $84,040 3) $71,400 4) $74,040 Use the following for the next three questions: Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups Machine hours Inspections 600 24,000 800 400 26,000 700 Overhead applied to Case 165 using traditional costing using direct labor hours is 1) $3,340,000. 2) $3,072,000 3) $4,000,000 4) $2,560,000. Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Using activity-based costing, the overhead rate for machining pool is: 1) $1,600 2) $150. 3) $72. 4) $138.5. Questlon 25 (2.5 points) Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Board 12 using activity-based costing is 1) $3,328,000. 2) $3,072,000. 3) $3,840,000 4) $2,400,000 Which of the following is not a batch-level activity? 1) Assembling 2) Inspection 3) Equipment setups 4) Purchase ordering Question 27 (2.5 points) For its inspecting cost pool, Davidson, Inc. expected overhead cost of $300,000 and 4,000 inspections. The actual overhead cost for that cost pool was $360,000 for 5,000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is 1) $60 per inspection 2) $72 per inspection. 3) $75 per inspections 4) $90 per inspection. Which of the following factors would suggest a switch to activity-based costing? 1) Product lines similar in volume and manufacturing complexity. O 2) Overhead costs constitute a significant portion of total costs. 3) Production managers use data provided by the existing system. 4) The manufacturing process has been stable. Question 29.(2.5 points) If manufacturing overhead has been overapplied during the year, the adjusting entry at the end of the year will show a credit to Work in Process Inventory credit to Finished Goods Inventory O debit to Manufacturing Overhead debit to Cost of Goods Sold Question 30 (2.5 points) In determining total manufacturing costs on the cost of goods manufactured schedule in a job ordering costing system, ending work in process inventory is deducted from beginning work in process inventory. O actual manufacturing overhead costs appear as a deduction O beginning work in process inventory should have a zero balance. O manufacturing overhead applied is added to direct materials and direct labor. Benson Inc.'s accounting records reflect the following inventories: Jan. 1. 20X5 Dec. 31. 20X5 Raw materials inventory $80,000 $64,000 Work in process inventory 104,000 116,000 Finished goods inventory 100,000 92,000 During 20X5, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $100,000, and incurred manufacturing overhead totaling $128,000. How much is total manufacturing costs incurred during 20X5 for Benson? 1) $1,392,000 2) $1,400,000 3) $1,388,000 4) $1,404,000 Benson Inc.'s accounting records reflect the following inventories: Jan. 1.20x5 Dec. 31, 20X5 Raw materials inventory $80,000 $64,000 Work in process inventory 104,000 116,000 Finished goods inventory 100,000 92,000 During 20X5, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $100,000, and incurred manufacturing overhead totaling $128,000. Assume Benson's cost of goods manufactured for 20x5 amounted to $1,360,000. How much would it report as cost of goods sold for the year? 1) $1,400,000 2) $1,460,000 3) $1,352,000 04) $1,368,000 Question 20 (2.5 points) Factory utilities $ 13,500 Direct labor $79,100 Depreciation on factory equipment 12,650 Factory manager's salary 8,000 Factory repairs 2,000 Indirect factory labor 48,900 Administrative office supplies used 2.640 Indirect materials 70,800 Sales salaries 48,400 Direct materials used 157,600 Advertising 23,000 How much is the manufacturing overhead in May? 1) $145,850 2) $36,150 3) $155,850 4) $158,490 Factory utilities $ 13,500 Direct labor $79,100 Depreciation on 12,650 Factory manager's factoryequipment salary 8,000 Factory repairs 2,000 > Indirect factory labor 48,900 Administrative office 2,640 supplies used Indirect materials 70,800 Sales salaries 48,400 Direct materials 157,600 Advertising used 23,000 Assume the manufacturing overhead in May is $160,000, how much would be the total product cost? 1) $236,700 O2) $398,850 3) $396,700 4) $475,840 Factory utilities $ 13,500 Direct labor $79,100 8,000 Depreciation on 12,650 Factory manager's factoryequipm salary ent Factory repairs 2,000 Indirect factory 48,900 Administrative office labor supplies used 2,640 Indirect materials 70,800 Sales salaries 48,400 Direct materials 157,600 Advertising used 23,000 How much is the total period cost in May? 1) $25,640 2) $84,040 3) $71,400 4) $74,040 Use the following for the next three questions: Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups Machine hours Inspections 600 24,000 800 400 26,000 700 Overhead applied to Case 165 using traditional costing using direct labor hours is 1) $3,340,000. 2) $3,072,000 3) $4,000,000 4) $2,560,000. Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Using activity-based costing, the overhead rate for machining pool is: 1) $1,600 2) $150. 3) $72. 4) $138.5. Questlon 25 (2.5 points) Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Board 12 using activity-based costing is 1) $3,328,000. 2) $3,072,000. 3) $3,840,000 4) $2,400,000 Which of the following is not a batch-level activity? 1) Assembling 2) Inspection 3) Equipment setups 4) Purchase ordering Question 27 (2.5 points) For its inspecting cost pool, Davidson, Inc. expected overhead cost of $300,000 and 4,000 inspections. The actual overhead cost for that cost pool was $360,000 for 5,000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is 1) $60 per inspection 2) $72 per inspection. 3) $75 per inspections 4) $90 per inspection. Which of the following factors would suggest a switch to activity-based costing? 1) Product lines similar in volume and manufacturing complexity. O 2) Overhead costs constitute a significant portion of total costs. 3) Production managers use data provided by the existing system. 4) The manufacturing process has been stable. Question 29.(2.5 points) If manufacturing overhead has been overapplied during the year, the adjusting entry at the end of the year will show a credit to Work in Process Inventory credit to Finished Goods Inventory O debit to Manufacturing Overhead debit to Cost of Goods Sold Question 30 (2.5 points) In determining total manufacturing costs on the cost of goods manufactured schedule in a job ordering costing system, ending work in process inventory is deducted from beginning work in process inventory. O actual manufacturing overhead costs appear as a deduction O beginning work in process inventory should have a zero balance. O manufacturing overhead applied is added to direct materials and direct labor