Question
Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,000 of direct material
Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,000 of direct material cost, $2,500 of direct labour cost, and $1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 70% of direct labour cost. Any under- or overapplied overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): Purchased during the month $29,500 Used in production $30,500 Labour: Direct labour hours worked during the month 2,500 Direct labour cost incurred $26,500 Indirect labour costs incurred $5,500 Manufacturing overhead costs incurred (total) $18,500 Inventories: Raw materials (all direct) March 31 $7,500 Work in process, March 31 $14,500 Work in Process inventory contains $5,500 of direct labour cost. 44) What is the amount of direct materials cost in the March 31 work in process inventory account? 44) A) $9,350. B) $9,000. C) $3,850. D) $5,150. 45) What is the cost of goods manufactured for March? 45) A) $67,250. B) $81,800. C) $75,550. D) $67,300. 46) Which of the following would be included in the entry to dispose of the under- or over applied overhead cost for the month? 46) A) A credit of $5,500 to Cost of Goods Sold. B) A debit of $50 to Manufacturing Overhead. C) A debit of $50 to Cost of Goods Sold. D) A debit of $5,500 to Manufacturing Overhead.
47) What was the March 1 balance in the Raw Materials inventory? 47) A) $9,500. B) $8,500. C) $10,500. D) $6,500.
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