Q1 Using the following budget data for Valley Corporation, which produces only one product, calculate the companys predetermined manufacturing overhead application rate for variable overhead Hint The factory supervisors salary is direct labor, since it is incurred regardless of production SG A expenses relate to the entire operations of Valley Corporation and not just related to manufacturing Units to be produced 11,000 Units to be sold 10,000 Indirect materials, varying with production $ 1,000 Indirect labor, varying with production 10,000 Factory supervisors salary, incurred regardless of production 20,000 Depreciation on factory building and equipment 30,000 Utilities to operate factory machines 12,000 Security lighting for factory 2,000 Selling, general and administrative (SG A) expenses 5,000 a $2 09 b $5 00 c $4 73 d $2 30 Q2 As the staff accountant at Diablo Manufacturing, you have been asked to prepare the journal entries associated with a recently completed custom order ( 720) You have the following information from which to prepare the journal entries Materials purchased $1,500 Direct materials used for 720 1,200 Indirect labor used for 720 250 Direct labor incurred for 720 850 Overhead applied to 720 1,000 What would be the account and amount of the debit in the journal entry to record Cost of Goods Manufactured for order 720 a Work in process inventory, $3,300 b Finished goods inventory, $3,050 c Work in process inventory, $3,050 d Finished goods inventory, $3,300 Q3 Given the following data for Scurry Company, what is the cost of goods sold Beginning inventory of finished goods $100,000 Cost of goods manufactured 700,000 Ending inventory of finished goods 200,000 Beginning work in process inventory 300,000 Ending work in process inventory 50,000 a $800,000 b $600,000 c $500,000 d $950,000 Q4 KAB, Inc has two service departments (S1 and S2) and two production departments (P1 and P2) Information from the most recent year shows the following for each department S1 S2 P1 P2 Direct overhead $30,000 $20,000 $55,000 $45,000 Allocated overhead 5,000 2,500 12,500 10,000 Machine hours 2,00 800 Square feet 3,000 1,000 KAB allocates S1 to the production departments based on square feet and S2 based on machine hours How much of S1s overhead is allocated to P2 a $28,000 b $11,667 c $7,500 d $8,750

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Q1 Using the following budget data for Valley Corporation, which produces only one product, calculate the companys predetermined manufacturing overhead application rate for variable overhead.

Q1 Using the following budget data for Valley Corporation, which produces only one product, calculate the companys predetermined manufacturing overhead application rate for variable overhead. Hint: The factory supervisors salary is direct labor, since it is incurred regardless of production. SG&A expenses relate to the entire operations of Valley Corporation and not just related to manufacturing.

Units to be produced	11,000
Units to be sold	10,000
Indirect materials, varying with production	$ 1,000
Indirect labor, varying with production	10,000
Factory supervisors salary, incurred regardless of production	20,000
Depreciation on factory building and equipment	30,000
Utilities to operate factory machines	12,000
Security lighting for factory	2,000
Selling, general and administrative (SG&A) expenses	5,000

a. $2.09

b. $5.00

c. $4.73

d. $2.30

Q2 As the staff accountant at Diablo Manufacturing, you have been asked to prepare the journal entries associated with a recently completed custom order (#720). You have the following information from which to prepare the journal entries:

Materials purchased	$1,500
Direct materials used for #720	1,200
Indirect labor used for #720	250
Direct labor incurred for #720	850
Overhead applied to #720	1,000

What would be the account and amount of the debit in the journal entry to record Cost of Goods Manufactured for order #720?

a. Work-in-process inventory, $3,300

b. Finished goods inventory, $3,050

c. Work-in-process inventory, $3,050

d. Finished goods inventory, $3,300

Q3 Given the following data for Scurry Company, what is the cost of goods sold?

Beginning inventory of finished goods	$100,000
Cost of goods manufactured	700,000
Ending inventory of finished goods	200,000
Beginning work-in-process inventory	300,000
Ending work-in-process inventory	50,000

a. $800,000

b. $600,000

c. $500,000

d. $950,000

Q4 KAB, Inc. has two service departments (S1 and S2) and two production departments (P1 and P2). Information from the most recent year shows the following for each department: