The Watts Company uses predetermined overhead rates to apply manufacturing over predetermined overhead rate is based on labor cost in Deot. A and on machine hours in Dept. ed on labor cost in Dept. A and on machine hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept. A $30,000 V C 710 Direct Labor Cost Manufacturing Overhead Direct Labor Hours Machine Hours 50.000 Dept. B S 40,000 50,000 8,000 5% 10,000 = 5.00 6,000 What predetermined overhead rates would be used in Dept. A and Dept. B, respectively? a. 50% and $8.00 b. 50% and $5.00 on 200% $15 and 110% 200% and $5.00 8. which one of the following cost should not be considered a direct cost of serving a particular customer woorde a customized personal computer by phone directly from the manufacturer? The cost of the hard disk drive installed in the computer. The cost of shipping the computer to the customer. The cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers. The cost of packaging the computer for shipment. Which of the following costs should not be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet? The cost of a hamburger patty in the burger they ordered. b. The wages of the employee who takes the customer's order. c. The cost of heating and lighting in the kitchen d The salary of the outlet's manager. Green Company's cost for the month of August were as follows: direct materials, $27,000; direct labor, $34.000 sales salaries. $14,000; Indirect labor, $10,000; indirect material, $15,000; general corporate administrative cost $12,000, taxes on manufacturing facility, $2.000; and rent on factory, $17,000. The beginning work in process Inventory was $16,000 and the ending work in process inventory was $9,000. What was the cost of goods manufactured for the month? $105,000 16,000 b. $132,000 $138,000 d. $112,000 were as follows 95.000: general beginning wo Ber. WIS om 27,000 DL 34,000 o6 105,000 10,000 121,000 9,000 15,000 2,000 Less End wie 17,000 12,000 2) The Owen Corporation provided the following information for the month of September Beginning inventories were as follows: Raw materials $40,000 Work in process Job #101 $50,000 Finished goods Job 199 $100,000 a. Raw material purchased on account. $98,000 b. Utility charges for the factory incurred on account amounted to $3,000. c. Materials requisitioned from stores during the month. Job #101 Job #102 Job #103 Factory Materials Total Material Requisitions $32,000 35,000 18.000 7.000 $92.000 d. Factory Labor incurred during the month. Job #101 $20,000 Job #102 22,000 Job #103 30,000 Indirect factory labor 26.000 Total Factory Summary $98.000 e. Factory overhead rate used 150% of direct labor cost. f. Depreciation on factory machines amounted to $6,000. 8. Job #101 and Job #102 were completed. (Complete job costs.) h. Job #99 and Job #101 were sold for $200,000 and $250,000 respectively. (Two entries ar required.) Required: Provide the journal entries to reflect the information provided above for the month (use cost accounting system). Complete the job costs sheets and the T-accounts for inventories for the month. Note: See Journal entry sheet and job cost sheet attached to test
