Goldberg Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $70,000 2,800 hours Account billing (lines) $45,000 19,000 lines Account verification (accounts) $19,000 29,000 accounts \\ Correspondence (letters) $12,000 1,600 letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) 160 hours 200 hours Account billing (lines) 10,000 lines 8,000 lines Account verification (accounts) 1,000 accounts 650 accounts Correspondence (letters) 50 letters 130 letters What is the cost per account for the account verification activity? (Round your answer to the nearest cent.) Co00 ) (A $7.50 ) B. $25.00 ) C. $3.68 D. $0.66 At the end of the month, OnTrack Company has the following data from the production cost report of the Welding Department: View the production data. Using the weighted-average method, what is the cost of: 1) ending work-in-progress 2) completed and transferred out (Round any intermediary calculations to the nearest cent.) The cost of ending work-in-process is Definition The cost of completed and transferred out is Equivalent UnitsCompleted and transferred out Equivalent UnitsEnding work-in-process Total equivalent units Total costs to account for: Direct Materials Costs 70,000 2,000 72,000 360,000 $ Conversion Costs 70,000 1,000 71,000 319,500 Olympia Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, Olympia estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $820,000. In June, Job 511 was completed. The details of Job 511 are shown below. Direct materials cost $22,500 Direct labor cost $12,000 l Direct labor hours 400 hours Units of product produced 400 units What is the amount of manufacturing overhead costs allocated to Job 5117 (Round any percentages to two decimal places and the final answer to the nearest dollar.) O A 817,571 O B. $9,371 O c. $28811 . $15,366 Nelson Manufacturing has two processing departments, Department | and Department II. The raw materials processed at Department | are sent to Department Il for further processing. During June, direct materials worth $60,000 purchased on account were assigned to Department |. The journal entry to record direct materials used in production is -G (O A. debit Work - in - Process InventoryDepartment |, $60,000; credit Raw Materials Inventory, $60,000 B. debit Work - in - Process InventoryDepartment |, $60,000; credit Accounts Payable, $60,000 . debit Accounts Payable, $60,000; credit Work - in Process InventoryDepartment |, $60,000 (O D. debit Raw Materials Inventory, $60,000; credit Work - in - Process InventoryDepartment |, $60,000 Reliable Car Parts, a manufacturer of spare parts, has two production departmentsAssembling and Packaging. The Assembling Department is mechanized, while the Packaging Department is labor oriented. Estimated manufacturing overhead costs for the year were $18,800,000 for Assembling and $12,400,000 for Packaging. Calculate the department predetermined overhead allocation rates for the Assembling and Packaging Departments, respectively, if the total estimated machine hours were 49,000 and labor hours were 22,000 for the year. (Round your answer to the nearest cent.) @) (O A. $854.55, $253.06 . $383.67, $854.55 . $253.06, $854.55 . $383.67, $563.64 Belstone, Inc. is a merchandiser of stone ornaments. It sold 15,000 units during the year. The company has provided the following information: Sales Revenue $525,000 Purchases (excluding Freight In) 315,500 Selling and Administrative Expenses 37,000 (O Freight In 15,300 Beginning Merchandise Inventory 42,500 Ending Merchandise Inventory 57,500 How much is the gross profit for the year? O A, $246,200 ) B. $315,800 ) C. $209,200 ) D. $209,500 If a company undertakes a quality improvement program, it would spend an additional $370,000 on raw materials inspection and an additional $280,000 on finish goods inspection. This quality improvement program would avoid loss of profits due to unhappy customers of $1,000,000. What would be the cost or savings of undertaking this quality improvement program? . $650,000 in savings . $650,000 in additional costs . $350,000 in additional costs $350,000 in savings Halcyon, Inc. completed Job 10B last month. The cost details of Job 10B are shown below. Direct labor cost $2,300 Direct materials cost $86 Machine hours 6 hours Direct labor hours 72 hours Predetermined overhead allocation rate per direct labor hour $31 Calculate the total job cost for Job 10B. (O A. $4,804 O B. $2,386 (O C. $4,618 O D. $2,572 Mars Supplies Company provided the following information for the year: Beginning BalanceWork in Process Inventory Ending BalanceWork - in = Process Inventory Beginning Balance Direct Materials Inventory Ending Balance Direct Materials Inventory Purchases Direct Materials Direct Labor Indirect Labor Depreciation on Factory Plant and Equipment Plant Utilities and Insurance What was the amount of the manufacturing overhead costs? $28,000.00 55,000 87,000 61,000 357,000 468,000 19,000 22,000 268,000 . $290,000.00 . $309,000.00 . $487,000.00 . $41,000.00 Miller Products manufactures dining room tables. Miller's production operations are divided into two departments Department A and Department B. The company uses a process costing system. Miller incurred the following costs during the year to produce 14,000 tables: Department A $750,000 Department B 374,200 \\ D If Miller sells 13,400 tables during the year, what will be the cost per table produced? (Round answer to two decimal places.) . $53.57 . $83.90 . $55.97 (O D. $80.30 Insetto Biological Manufacturing produces a pesticide chemical and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, the first departmentMixinghad no beginning inventory. During January, 44,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed, and 12,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly throughout the process. The weighted average method is used. At the end of the month, Insetto calculated equivalent units. The ending inventory in the Mixing Department was 64% complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were calculated for the product that was completed and for ending inventory? . Product completed: 44,000 equivalent units; Products in ending inventory: 7,680 equivalent units \\\\ . Product completed: 32,000 equivalent units; Products in ending inventory: 12,000 equivalent units . Product completed: 44,000 equivalent units; Products in ending inventory: 12,000 equivalent units . Product completed: 32,000 equivalent units; Products in ending inventory: 7,680 equivalent units On January 1, Standard Manufacturing had a beginning balance in Work - in = Process Inventory of $80,900 and a beginning balance in Finished Goods Inventory of $20,000. During the year, Standard incurred manufacturing costs of $351,000. During the year, the following transactions occurred: Job A-12 was completed for a total cost of $123,000 and was sold for $128,000. Job A - 13 was completed for a total cost of $204,000 and was sold for $214,000. Job A - 15 was completed for a total cost $62,000 but was not sold as of year - end. The Manufacturing Overhead account had an unadjusted credit balance of $12,000 and was adjusted to zero at year end. What was the amount of gross profit reported by Standard at the end of the year? . $5,000 . $15,000 \\ ! . $10,000 . $27,000 On June 30, Coral, Inc. finished Job 750 with total job costs of $4,800 and transferred the costs to Finished Goods Inventory. On July 6, Coral sold goods to a customer for $5,600 cash. Which of the following is the correct journal entry to record the cost of goods sold? Assume the perpetual inventory system is used. debit Cost of Goods Sold $4,800 and credit Work - in Process Inventory $4,800 j> debit Work - in = Process Inventory $4,800 and credit Cost of Goods Sold $4,800 . debit Cost of Goods Sold $4,800 and credit Finished Goods Inventory $4,800 . debit Finished Goods Inventory $4,800 and credit Cost of Goods Sold $4,800 On January 1, Jackson, Inc.'s Work - in = Process Inventory account showed a balance of $65,000. During the year, materials requisitioned for use in production amounted to $70,000, of which $66,200 represented direct materials. Factory wages for the period were $208,000 of which $187,000 were for direct labor. Manufacturing overhead is allocated on the basis of 60% of direct labor cost. Actual overhead was $116,330. Jobs costing $353,000 were completed during the year. The December 31 balance in Work in = Process Inventory is . $318,200 $65,000 \\\\/\\a . $430,400 . $77,400 On June 1, Westbrook Productions had beginning balances as shown in the T accounts below. Raw Materials Inventory 10,000 Work - in Process Inventory 20,000 Finished Goods Inventory 25,000 Manufacturing Overhead 41,000 During June, the following transactions took place: June 2: Issued $3,300 of direct materials and $700 of indirect materials to production. June 13: Incurred $6,200 of direct factory labor cost and $14,900 of indirect factory labor cost. What was the balance in the Manufacturing Overhead account following these transactions? () A. $41,700 O B. $59,200 (O C. $55,900 $56,600 White Toy Company manufactures children's toys that are related to children's movies. White Toy Company uses job order costing. On June 2, White Toy Company began production of 5,600 toys, Job 423, for Digital Pictures for $1.60 sales price per toy. White Toy Company promised to deliver the toys to Digital Pictures by June 5. White Toy Company incurred the following direct costs: View the costs. View additional information. Read the requirements Requirement 1. Prepare a job cost record for Job 423. Calculate the predetermined overhead allocation rate (round to two decimal places); then allocate manufacturing overhead to the job Begin by determining the total amount of direct materials and direct labor incurred on the job. Next, calculate the predetermined overhead allocation rate and apply manufacturing overhead to the job. Lastly, compute the total cost of Job 423 and the cost per toy. Job Cost Record Job No. 423 Customer Name Digital Job Description 5,600 toys Date Promised 6-5 Date Started 6-2 Date Completed 6-3 Requirements - X Direct materials Direct labor Manufacturing overhead allocated abor Time 1. Prepare a job cost record for Job 423. Calculate the predetermined overhead Requisition Record allocation rate (round to two decimal places); then allocate manufacturing overhead to the job. Date Number Amount Number Amount Date Rate Amount 2. Journalize in summary form the requisition of direct materials, the assignment of direct of direct labor, and the allocation of manufacturing overhead to Job 423. Wages are not yet paid. 63 347 655 Labor cost 3. Journalize completion of the job and the sale of the 5,600 toys on account. 6 - 2 64 575 Overall Cost Summary 656 60 Direct materials Direct labor Print Done Manufacturing overhead Allocated Total Job Cost Totals Requirement 2. Journalize in summary form the requisition of direct materials, the assignment of direct labor, and the allocation of manufacturing overhead to Job 423. Wages are not yet paid. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by journalizing the use of direct materials Date Accounts Debit Credit Jun 3 Additional information Next, journalize the use of direct labor. Date Accounts Debit Credit White Toy Company allocates manufacturing overhead to jobs based on the between estimated overhead of $504,000 an Jun. 3 of 3504,000 and estimated direct labor costs of $420,000. Job 423 was completed and shipped on June 3. Print Done Now journalize the allocation of overhead to Job 423. Date Accounts Debit Credit Jun. 3 Requirement 3. Journalize completion of the job and the sale of the 5,600 toys on account. (Record debits first, then credits. Exclude explanations from any journal entries.) Costs - X Begin by preparing the entry to show the completion of the job. Date Accounts Debit Credit Date Labor Time Record No. Description Amount Jun. 3 6/02 655 10 hours @ $18 per hour s 180 6/03 656 20 hours @ $13 per hour Materials Next, journalize the revenue portion of the sale of Job 423. Date Description Amount 6/02 63 31 lbs. polycarbonate plastic @ $11 per lb. 341 Date Accounts Debit Credit 6/02 64 25 lbs. acrylic plastic @ $27 per lb 675 Jun. 3 lbs. refined aluminum @ $48 per lb. Print Done Finally, journalize the cost of goods portion of the sale Date Accounts Debit Credit Jun. 3Stealth, Inc. produces two types of drones, rotary and fixed wing. Stealth estimated $832,000 of manufacturing overhead, and 52,000 machine hours for the year. The allocation base for overhead costs is machine hours. The rotary model actually consumed 29,000 machine hours, and the fixed wing type consumed 23,000 machine hours. How much overhead is allocated to the fixed wing model? O A. $122,667 (O B. $290,000 (0 C. $368,000 (O D. $464,000 Payton Corporation provided the following information for the year: Beginning BalanceWork in Process Inventory $25,000 Ending BalanceWork - in Process Inventory 58,000 Beginning Balance Direct Materials 85,000 Ending Balance Direct Materials 61,000 Purchases Direct Materials 358,000 Direct Labor 472,000 Indirect Labor 19,000 Depreciation on Factory Plant and Equipment 22,000 Plant Utilities and Insurance 269,000 What was the amount of the cost of goods manufactured for the year? $1,369,000 $1,197,000 $1,164,000 $1,131,000 o 60 o p Neptune Fabrication Plant has provided you with the following information: Total manufacturing overhead costs estimated at the beginning of the year $250,000 Total direct labor costs estimated at the beginning of the year $129,000 Total direct labor hours estimated at the beginning of the year 5,000 direct labor hours Actual manufacturing overhead costs for the year $241,000 Actual direct labor costs for the year $134,000 Actual direct labor hours for the year 4,600 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. What was the unadjusted ending balance in the Manufacturing Overhead account? () A. $18,690 debit balance (O B. $18,690 credit balance () C. $11,000 debit balance () D. $11,000 credit balance AVC Company has finished 200 units with a total standard direct materials costs of $19,000 and total standard conversion costs of $5,000. Under a just - in - time costing system, the journal entry that is recorded for the 200 completed units moved to Finished Goods Inventory is (O A. Finished Goods Inventory 24,000 Cash 24,000 J D (O B. Finished Goods Inventory 24,000 Conversion Costs 19,000 Accumulated Deprecation 5,000 (O C. Conversion Costs 24,000 Accounts Payable 19,000 Accumulated Depreciation 5,000 (O D. Finished Goods Inventory 24,000 Raw and In - Process Inventory 19,000 Conversion Costs 5,000 Nguyen, Inc. has received a bid for 12,000 units. The costing estimates show that the average cost per unit for this bid will be $600. The company uses cost - based pricing and adds 20% markup to total costs. What total price will Nguyen ask for the entire order? O A. $7,200,000 O B. $5,760,000 1\\ (O C. $8,640,000 O D. $1,440,000