Question 2 Mash 8: Co uses $100 worth of direct materials and $20 worth of indirect materials. Whichjournal entry should the company use to record this transaction? EntryA DR. Work in Process $120 Raw Materials Work in Process Manufacturing Overhead Raw Materials Manufacturing Overhead Raw Materials Work in Process Manufacturing Overhead Accounts Paya ble Raw Materials Mfg. Overhead Work in Process Question 3 1 pts If a company has high fixed manufacturing costs, an inaccurate allocation base estimation would be more likely lead to applied overhead being highly over or highly under applied than it would for a company with low fixed manufacturing costs. (assume the company uses a single, plantwide rate) o True O FalseQuestion 4 What is the correct journal entry when a company incurs factory depreciation of $1200? Journal Excerpt DR. CR. r [ Select] v' [Select ] Depreciation Expense Manufacturing Overhead Accumulated Depreciation Work in Process Question 5 1 pts Provided there is ending MOH balance in each account, would net operating income for the period be higher or lower or the same when the underapplied overhead is closed out proportionally rather than only to COGS? -\"- Lower -\"- Higher -\"- It's the same Question 6 2 pts Stereo Corp. produces radios. The following information on inventory and production pertains to the year 2017. :3::l::;:f:1ct2lgi1r;g Costs recorded on job $2 89,000 Beginning WIP $33,000 Ending WIP $71,000 Beginning Finished Goods Inventory $0 Ending Finished Goods Inventory $45,500 Overapplied Overhead $7,500 Calculate the Cost of Goods Manufactured at Stereo Corp. in the year 2017. Question 7 2 pts Stereo Corp. continued production of their popular radio line into 2018. The following information on inventory and production pertains to the year 2018. Cost of Goods Manufactured $266,000 Beginning Finished Inventory $0 Ending Finished Goods Inventory $44,000 Overapplied Overhead $ 10.000 Calculate the adjusted Cost of Goods Sold for the year 2018. E Question 8 2 pts Bateman Steel estimates $1700 of total manufacturing overhead and $2800 of direct labor costs (the cost driver). At the end of the year, Bateman audits his accounts and realizes that his actual direct labor cost was $2100 and manufacturing overhead was $2500. What is the predetermined manufacturing overhead rate? Round your answer to 2 do. E Question 9 In the following accounting period, Bateman Steel estimates a predetermined overhead rate of $0.75 per dollar of direct labor. At the end of the year, Bateman audits his accounts and realizes that his actual direct labor cost was $3000 and manufacturing overhead was $1800. Was MOH overapplied or underapplied. and by how much? Provide overapplication as a positive value, and underapplication as a negative. E Question 10 1 pts Joe's Boots uses a job-order costing system and applies manufacturing overhead cost to boots using direct labor hours. The predetermined overhead application rate was based on a formula that estimates $846000 of total manufacturing overhead for an estimated activity level of 17.000 direct labor hours. Joe's year-end records include the following: Direct labor hours are 20,000 Manufacturing overhead cost of $676,000. Calculate the overlunderlapplication of manufacturing overhead. Provide overapplication as a positive value, and underapplication as a negative. Round your answer to 2 d.p. Do not round intermediary calculations. E Question 11 2 pts increse/decrese When MOH is overapplied, COGS must [ Select ] COGS is a(n) owner's equity/ liasbility/ asset/ expense [ Select ] account, so complete the following journal entry. MOH/COGS Journal Excerpt [ Select ] $300,000 [ Select ] $300,000 MOH/COGS Assume that the entirety of MOH is closed out to COGS.Question 12 3 pts Joe's Boots completed a comprehensive accounting audit on their nancial statements. This review revealed that manufacturing overhead was overapplied by $300,000. Joe's is now required to close out manufacturing overhead using the proportional method. The following information is available: Application of MOH is as follows: Work-in-process inventory is $120,000. Finished goods inventory is $450,000, and COGS is $430,000. Joe's journal entry forthis event is incomplete. Fill in the respective entries below. 3 Manufacturing Overhead 3 WIP 3 Finished Goods $ COGS The answer will be a whole number. Please enter the numerical value only. For example, "$420,600" or "420,600" DO NOT ADD DECIMALS OR ANY SPACES Question 13 4 pts We have some information available for a company called Strata Scales relating to its inventory costs as recorded in the following T-accounts. However, some information has been misplaced and cannot be found. Fill in the missing values: MOH Debits recorded during the 488,664 Credits recorded during the period period subtotal balance 58,924 WIP Cost of goods completed and Beginning Balance 7,190 transferred accd. to job cost 756,000 sheets 322,000 76,000 Manufacturing Overhead applied Ending Balance Finished Goods Beginning Balance 41,000 Cost of goods sold accd to job cost sheets Transferred in from WIP Ending Balance 143,000 COGS Beginning Balance 0 Costs transferred from FG Ending Balance The answer will be a whole number. Please enter the numerical value only. For example, "$420,600" or "420,600" DO NOT ADD DECIMALS OR ANY SPACESQuestion 1 1 pts Maker's Chamber Corp is conducting cost volume prot analysis for roughly estimating the company's prot and other cost gures. The analysis shows that breakeven for the X division is 12,000 units sold. Which of the following pieces of new information would presumably cause the breakeven number to rise above 12,000? SELECT ALL-THAT-APPLY o The labor staff negotiated a 551/ hour wage increase for all manufacturing employees o A new competitor motivates Maker's management to lower sales price by $1 per unit o A new competitor may reduce the number of sales for the X division H A new distributor is offering materials used by the X division for less per unit o The primary manufacturing machine for the X division had its useful life extended by three years Question 2 1 pts Profit in terms of dollars can be calculated by: O Both (MOS * SP) & (TR - TC) O Both (TR - TC) & (BEP * MOS) O Breakeven price * Margin of Safety (BEP * MOS) o Margin of Safety * Selling Price (MOS * SP) o Difference of Total Revenue and Total Cost (TR - TC)Question 3 Contribution Margin/Sales = Unit Contribution Margin/[Variable expense/unit) o Tme False Question 4 John and Tim are competitors and they both started their shops at the same time. They both sell kitchen utensils. John's xed costs are $45000 while that of Tim are $56000. Their contribution margins per unit are $10 and $14 respectively. Which one of them breaks-even earlier in terms of the units sold? - - Tim, as he sells 500 less units - - John, as he sells 500 more units - - John, as he sells 500 less units - - They both break even at the same time - - Tim, as he sells 500 more units Question 5 1 pts What is the Margin of Safety (in dollars) for the data below? Units Sold 10,000 units Sales $250,000 Fixed Costs $70,000 Variable Costs $125,000 o $140,000 o $50,000 o $110,000 o $210,000 O $125,000Question 6 2 pts Bryan and Shawn are playing a game of Monopoly. Bryan has 6 houses. which he is willing to sell to Shawn. Bryan bought the houses at a cost of $40 per house (in Monopoly money] and incurred maintenance charges from a community chest card of $13 per house. Bryan decided to sell all the houses for a total of $250. Calculate the net prot for Bryan in the game due to this deal. E Question 7 2 pts Norman owns a cafe. Norman's cafe sells only one type of coffee. The xed cost of the cafe per month is $10,000. The selling price of each coffee is $7 and the variable cost per coffee is $2. In the month of April, Norman's cafe sold 3700 coffees. At the end of April, has the cafe broken even? If yes, by how much was their net operating income? If not. hovvr much was their net operating loss? Indicate net operating loss with a negative sign. E Question 1 1 pts Cola purchased 10 gallons of sugar at a cost of $500 per gallon to try and produce coke at home. The cost incurred is counted as: o Cost of Indirect Labor o Cost of Raw Material o None of these o Overhead Cost o Cost of Direct Labor