Question
Dale Company, which applies overhead at the rate of 190% of direct labor cost, began work on job no. 101 during June. The job was
Dale Company, which applies overhead at the rate of 190% of direct labor cost, began work on job no. 101 during June. The job was completed in July and sold during August, having accumulated direct material and labor charges of $27,000 and $15,000, respectively. On the basis of this information, the total overhead applied to job no. 101 amounted to: Ch3 Q23 a. $70,500. b. $51,300. c. $79,800. d. $28,500. e. $0. Question 3 3 points Save Maher, Inc., applies manufacturing overhead at the rate of $60 per machine hour. Budgeted machine hours for the current period were anticipated to be 80,000; however, a lengthy strike resulted in actual machine hours being worked of only 65,000. Budgeted and actual manufacturing overhead figures for the year were $4,800,000 and $4,180,000, respectively. On the basis of this information, the company's year-end overhead was: a. underapplied by $900,000. b. underapplied by $620,000. c. underapplied by $280,000. d. overapplied by $280,000. e. overapplied by $620,000. Question 4 3 points (Extra credit) Save Copley uses a weighted-average process-costing system. All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production. The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion. Total material costs amounted to $220,000; conversion costs were $414,000. The cost of the ending work in process is: a. $54,000. b. $78,000. c. $114,000. d. $195,000. e. some other amount. 3 points Save Ohio, Inc., which uses a process-cost accounting system, began operations on January 1 of the current year. The company incurs conversion cost evenly throughout manufacturing. If Ohio started work on 3,000 units during the period and these units were 70% of the way through manufacturing, it would be correct to say that the company has: a. 900 equivalent units of production. b. 900 in-process units. c. 2,100 completed units. d. 3,000 physical units in production. e. 3,000 equivalent units of production. 3 points Save Barney Company applies manufacturing overhead by using a predetermined rate of 200% of direct labor cost. The data that follow pertain to job no. 764: Direct Material Cost= $55,000 Direct Labor Cost= 40,000 If Barney adds a 40% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the sale of job no. 764? Account Debited Amount A) Cost of Goods Sold 175,000 B) Cost of Goods Sold 245,000 C) Finished Goods Inventory 175,000 D) Finished Goods Inventory 245,000 E) Sales Revenue 245,000 a. Choice A b. Choice B c. Choice C d. Choice D e. Choice E 3 points Save The accounting records of Brownwood Company revealed the following information: Work-in-process inventory, Jan 1 58,000 Work-in-process inventory, Dec 31 49,000 Finished Goods inventory Jan 1 125,000 Finished Goods inventory Dec 31 158,000 Cost of Goods Manufactured 754,000 Brownwood's cost of goods sold is: a. $721,000. b. $730,000. c. $778,000. d. $787,000. e. some other amount. 3 points Save Job no. C12 was completed in November at a cost of $18,500, subdivided as follows: direct material, $3,500; direct labor, $6,000; and manufacturing overhead, $9,000. The journal entry to record this information is: a. Cost of Goods Sold 18,500 Finished Goods Inventory 18,500 b. Finished Goods Inventory 18,500 Cost of Goods Sold 18,500 c. Work-in-process Inventory 18,500 Raw-Material Inventory 3,500 Wages Payable 6,000 Manufacturing Overhead 9,000 d. Work-in-process 18,500 Finished Goods Inventory 18,500 e. 3 points Save Chen Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,000 units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were: materials, $15; conversion, $22. The cost of Chen's completed production is: a. $225,000. b. $330,000. c. $333,000. d. $555,000. e. some other amount. 3 points Save Oregon Manufacturing incurred $106,000 of direct labor and $11,000 of indirect labor. The proper journal entry to record these events would include a debit to Work in Process for: a. $0 because Work in Process is not affected. b. $0 because Work in Process should be credited. c. $11,000. d. $106,000. e. $117,000. 3 points Save Hampton Textile Co., manufactures a variety of fabrics. All materials are introduced at the beginning of production; conversion cost is incurred evenly through manufacturing. The Weaving Department had 2,000 units of work in process on April 1 that were 30% complete as to conversion costs. During April, 9,000 units were completed and on April 30, 4,000 units remained in production, 40% complete with respect to conversion costs. The equivalent units of direct materials for April total: a. 15,000. b. 9,000. c. 13,600. d. 13,000. e. 14,400. 3 points Save Lexton Corporation had 8,200 units of work in process on November 1. During November, 26,800 units were started and as of November 30, 7,900 units remained in production. How many units were completed during November? a. 16,100. b. 26,500. c. 27,100. d. 42,800. e. None of these. 3 points Save An employee accidentally overstated the year's advertising expense by $50,000. Which of the following correctly depicts the effect of this error? a. Cost of goods manufactured will be overstated by $50,000. b. Cost of goods sold will be overstated by $50,000. c. Both cost of goods manufactured and cost of goods sold will be overstated by $50,000. d. Cost of goods sold will be overstated by $50,000, and cost of goods manufactured will be understated by $50,000. e. None of these. 3 points Save Norwood Appliance produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $100,000; assembly-line workers, $90,000; security guards, $18,000; and plant supervisor, $30,000. The total of Norwood's direct labor cost was: a. $90,000. b. $80,000. c. $120,000. d. $138,000. e. $238,000. 3 points Save The accounting records of Hill Corporation revealed the following selected costs: Sales commissions, $50,000; plant supervision, $94,000; and administrative expenses, $185,000. Hill's period costs total: a. $50,000. b. $329,000. c. $235,000. d. $225,000. e. $94,000. 3 points Save Tulsa Corporation, which adds materials at the beginning of production, uses a weighted-average process-costing system. Consider the data that follow. # of Unites Cost of Materials Beginning Work in Process 40,000 $80,600 Started in June 60,000 $124,400 Production Completed 75,000 Ending Work in Process 25,000 The company's cost per equivalent unit for materials is: a. $1.24. b. $1.66. c. $1.67. d. $2.05. e. some other amount. 3 points Save Strom Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was: a. $0.05 per machine hour. b. $21 per machine hour. c. $20 per machine hour. d. $0.04 per machine hour. e. $25 per machine hour. 3 points Save Summit Corporation recently used $75,000 of direct materials and $9,000 of indirect materials in production activities. The journal entries reflecting these transactions would include: a. a debit to Manufacturing Overhead for $9,000. b. a debit to Manufacturing Overhead for $84,000. c. a credit to Manufacturing Overhead for $9,000. d. a debit to Raw-Material Inventory for $75,000. e. a debit to Work-in-Process Inventory for $84,000. 3 points Save The accounting records of Diego Company revealed the following costs, among others: Factory Insurance $32,000 Raw Material Used $256,000 Customer Entertainment $15,000 Indirect Labor $45,000 Depreciation on Saleperson's cars $22,000 Production Rental equipment costs $72,000 Costs that would be considered in the calculation of manufacturing overhead total: a. $149,000. b. $171,000. c. $186,000. d. $442,000. e. some other amount. 3 points Save Gilbert adds materials at the beginning of production and incurs conversion cost uniformly throughout manufacturing. Consider the data that follow. Units Beginning work in process 20,000 Started In August 60,000 Production completed 55,000 Ending work in process, 40% complete 25,000 Conversion cost in the beginning work-in-process inventory totaled $120,000, and August conversion cost totaled $270,000. Assuming use of the weighted-average method, which of the following choices correctly depicts the number of equivalent units for materials and the conversion cost per equivalent unit? Equivalent Units Conversion Cost Materials Per Equivalent Unit A) 55,000 $4.91 B) 65,000 $4.88 C) 65,000 $6.00 D) 80,000 $4.88 E) 80,000 $6.00 a. Choice A b. Choice B c. Choice C d. Choice D e. Choice E 3 points Save The accounting records of Tacoma Company revealed the following costs: direct materials used, $160,000; direct labor, $350,000; manufacturing overhead, $400,000; and selling and administrative expenses, $220,000. Tacoma's product costs total: a. $510,000. b. $750,000. c. $920,000. d. $1,130,000. e. $910,000 
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Managerial Accounting
Authors: Ray Garrison, Theresa Libby, Alan Webb
10th Canadian edition
978-1259024900
