D. Activity-based costing Q6. For the year, Red Company has beginning work in process inventory 5650,000. During the year, total manafacturing costs are 150,000. Ending woek in process inventory for the year is S100,000. Also, beginning finished goods invetory is $200,000, and ending finished poods inventory is $250,000. The cost of poods sold is $450,000 A sso0,000 S650,000 C 5600,000. Q7. The source documents for assigning material and factory labor costs to job cost sheets are A. Invoices and time tickets B Inveices and payroll register. C. Materials requisition slips and payroll register D. Materials requisition slips and time tickets Q8. Manufacturing overhead was estimated to be $360,000 oe the year along with 24,000 direct labor hours. Actual manufacturing overhead was 5282,000, actual direct labor hours were 25,700. The amount of manufacturing oveahcad applied to production would be A 282,000 B 217,900 C. 360,000 D. 385,500 o9. Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $415,000, and actual labor hours were 21,000 Which of the following would be comet? A Overhead is under appliod by $15,000 B. Overhead is under appliod by $5,000 C. Overhead is over applied by $5,000 D. Overhead is over applied by $15,000 QI0. Towson Co. uses a predeterminod overhcad rate based on direct labor-hours to apply manufacturing overhead to jobs. For the month of July, Towson's estimated manufacturing overhead cost was $300,000 based on an estimated activity level of 150,000 direct labor-hours. Actual overhead amounted to $260,000 with actual direct labor-bours totaling 120,000 for the month. How much was the over applied or under applied overhead? And what change should the company mke in tems of cost of goods sold to balance the manafacturing overhcad account? A. $20,000 over applied, decreases cost of goods selu s20,000 B. S20,000 under applied, increases cost of poods sold $20,000 C. $25,000 over applied, decreases cost of goods sold $25,000 D. S25,000 under appliod, increases cost of goods sold $25,000 QI. Which of the follkowing statement is corect? A A law fim is likely to use process costing for major lawsaits B A manufacturer of painthalls is likely to use process coting C. Both job order and process costing determine prodact costs at the end of a period