. Dexter's company's 2016 manufacturing costs were as follows:

Direct materials and direct labor 100,000

Depreciation of manufacturing equipment 70,000

Depreciation of factory building 40,000

Janitor's wages for cleaning factory premises 15,000

How much of these costs should be inventories for external reporting purposes?

• a.225,000
• b.210,000
• c.385,000
• d.200,000

2. Peter Paul company uses a job order cost system and applies factory overhead to production orders on the basis of direct labor cost. The overhead rates for 2016 are 200% for dept. A and 50% for dept. B. job 123 started and completed during 2016, was charged with the following costs:

A B

Direct materials 25,000 5,000

Direct labor ? 30,000

Direct materials 40,000 ?

The total manufacturing costs associated with joab 123 should be

• a.135,000
• b.180,000
• c.195,000
• d.240,000

3.Jorelle corporation has a job order cost system. The following debits (credits) appeared in the work-in-process account for the month of March of the current year

March Description Amount

1 Balance 2,000

31 Direct materials 12,000

31 Direct labor 8,000

31 Factory overhead 6,400

31 To finished goods (24,000)

Jorell supplies overhead to production at a predetermined rate of 80% based on direct labor cost. Job no. 30, the only job still in process at the end of march 2 has been charged with direct labor of 1,000.

The amount of direct materials charged to job was

• a.12,000
• b.4,400
• c.2,600
• d.1,500

4. blue beach industries has two production departments. ABC and XYZ and uses a job order cost system. To determine manufacturing costs, the company applies manufacturing overhead to production orders based on direct labor costs using the departmental rates predetermined at the beginning of the year based on the annual budget. The 2016 budget for the two departments was as follows:

ABC XYZ

Direct materials 630,000 90,000

Direct labor 180,000 720,000

Factory overhead 540,000 360,000

Actual materials and labor costs of job np. 676 during 2014 were as follows:

Direct materials 22,500

Direct labor- ABC 7,200

Direct labor- XYZ 10,800

What was the total manufacturing cost associated with Job no. 678 for 2014?

• a.45,000
• b.49,500
• c.58,500
• d.67,500

5. the Diamond company uses a job order cost accounting system. Overhead is applied to production at a predetermined rate of 80% based on direct labor cost. The following posting appear in the ledger accounts of the company for the month of September

Debit

Work in process, Sept. 1 30,000

Direct materials 60,000

Direct labor 50,000

Factory overhead 40,000

Cost of goods completed (155,000)

Job no. 327 was the only job not completed in September and it has been charged 4,600 for factory overhead.

Direct materials charged to Job no. 327 was:

• a.10,350
• b.14,650
• c.20,000
• d.25,000

Direct labor charged to Job no. 327 was:

• a.5,750
• b.6,784
• c.8,280
• d.8,480

6. Hamilton company uses job-order costing. Factory overhead is applied to production at a budgeted cost of 150% of direct labor costs. Any overapplied or underapplied factory overhead is closed to the cost of goods sold account at the end of each month. Job 101 was the only job in process at January 31 with accumulated costs as follows:

Direct materials 4,000

Direct labor 2,000

Factory overhead applied 3,000

Total 9,000

Jobs 102, 103, and 104 were started during February. Direct materials requisitions for February totaled 26,000. Direct labor costs of 20,000 were incurred for February. Actual factory overhead was 32,000 for February. The only job still in process at February 28, was job 104, with cots of 2,800 for direct materials and 1,800 for direct labor.

The cost of goods manufactured for February was:

• a.77,700
• b.78,000
• c.79,700
• d.85,000

7. abner corporation had manufactured 100,000 units of compound X in 2016 at the following costs. Labor of 242,500 of which 93% represents direct labor. Materials of 182,500 of which 90% represents direct materials. Opening work in process is 88,125. Closing work in process inventory is 67,500. Overhead is applied at 125% of direct labor cost.

The cost of goods manufactured is

• a.671,150
• b.692,306
• c.651,036
• d.629,900

8. jolly co. employs the job order cost system. Relevant data for the month just ended are summarized below.

• work in process beg. 100,000
• direct labor used for the month 200,000
• direct labor costs for the month 160,000
• overhead supplies based on direct labor 120,000
• cost of goods completed 501,800
• ending work in process referred to job 106 which was charged with direct labor of 12,000 and job 107 charged with overhead of 9,600

The cost of direct materials charged to jobs 106 and 107 was

a.34,600

b.16,800

c.30,000

d.36,000

9. the following information related to job no 2468 which is being manufactured by daisy co. to meet customers orders.

Dept. A Dept. B

Direct materials used 5,000 3,000

Direct labor hrs used 400 200

Direct labor rate per hr 4.00 5.00

Overhead rate per DL hr 4.00 5.00

Administrative and selling expense 20% of full production cost

Profit markup 25% of selling price

The selling price to the customer for job 2468 is:

• a.16,250
• b.20,800
• c.17,333
• d.10,800

10. the work-in-process account of the malinta co. follows:

April 1 bal 25,000

Direct materials 50,000

Direct labor 40,000

Factory overhead applied 30,000

Finished goods 125,450

Overhead is applied to production at a predetermined rate, based on direct labor cost. The work in process at april 30 represents the cost of job 456 which has been charged with direct labor cost of 3,000 and job no. 789, which had been charged with applied overhead of 2,400

The cost of direct materials charged to job no. 456 and 789 amounted to:

• a.8,700
• b.7,600
• c.4,500
• d.4,200

The prime cost during the month amounted to:

• a.70,000
• b.90,000
• c.120,000
• d.145,000