1. DistaBricks manufactures custom brick and applies job-order costing. The following information relates to the fiscal year ending December 31, 2013.

Beginning balance in Raw Materials Inventory $ 13,600

Purchases of raw material 211,000

Ending balance in Raw Materials Inventory 15,100

Beginning balance in Work in Process 18,700

Ending balance in Work in Process 16,500

Direct labor cost 78,600

Manufacturing overhead applied 47,900

Actual manufacturing overhead 44,800

Beginning balance in Finished Goods 26,200

Ending balance in Finished Goods 24,500

Sales 421,000

Selling expenses 115,400

General and administrative expenses 75,900

How much is the cost of direct materials transferred into production?

1. $224,600

B. $212,500

C. $209,500

D. $211,000

1. The manufacturing operations of Saltic Enterprises had the following balances for the month of March:

March 1, 2013 March 31, 2013

Raw Materials $11,000 $14,000

Work in Process 8,000 10,000

Finished Goods 25,000 28,000

If Saltic reports cost of goods sold totaling $249,000 in March, how much did it transfer out of Work in Process as completed goods?

1. $277,000
2. $246,000
3. $251,000
4. $252,000

1. Tranham, Inc. uses a job-order costing system. It reported the following amounts for March:

Work in process, March 1 $38,000 Finished goods, March 1 $14,000

Work in process, March 31 35,000 Finished goods, March 31 17,500

Cost of goods manufactured 169,000 Raw materials, March 1 12,300

Direct labor used 64,000 Raw materials, March 31 12,000

Selling costs incurred 32,000 Direct materials used 63,000

How much will Traynham report as cost of goods sold for the month of March?

1. $169,000
2. $172,000
3. $183,000
4. $165,500

1. During the month of August, Ross MotorCo applied overhead to jobs using an overhead rate of $0.80 per dollar of direct labor. Direct labor in August was $138,000. Estimated overhead in August was $112,800. Actual overhead was composed of the following items:

Indirect materials $ 16,400

Indirect labor 24,900

Utilities 24,500

Depreciation 38,700

Repair expense 13,500

Total $118,000

How much will Ross MotorCo record as a debit to Manufacturing Overhead during the year?

A. $112,800

B. $118,000

C. $110,400

D. More information is needed to answer

1. National Production Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows:

Estimated Actual

Overhead cost $174,000 $171,100

Direct labor hours 5,800 5,900

Direct labor cost $87,000 $89,975

How much is the predetermined overhead rate?

1. $2.00
2. $1.90
3. $30.00
4. $1.93

6.During the month of August, Ranson Productions applied overhead to jobs using an overhead rate of $0.60 per dollar of direct labor. Actual direct labor in August was 12,000 hours at $15.00 per hour, for a total of $180,000. Estimated overhead in August was $111,600. Actual overhead was composed of the following items:

Indirect materials $ 16,400

Indirect labor 22,000

Utilities 24,500

Depreciation 38,700

Repair expense 13,500

Total $115,100

How much overhead was applied during the year by Ranson Productions?

1. $108,000
2. $115,100
3. $111,600
4. More information is needed to answer

7. The Shaping Department began June with 5,000 units which were 50% complete. During June, the department received another 60,000 units from the prior department and completed 62,000 units. The remaining units were 75% complete as to conversion costs. Materials are added at the beginning of the process. How much are equivalent units for conversion costs in the Shaping Department