Managerial Accounting 16th edition By Garrison -Test Bank

Managerial Accounting, 16e (Garrison) Appendix 2A Activity-Based Absorption Costing 1) Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, I63E and E76I, about which it has provided the following data: Direct materials per unit $ 19.90 $ 54.40 Direct labor per unit $ 12.00 $ 31.50 Direct labor-hours per unit 0.80 2.10 Annual production (units) 30,000 10,000 The company's estimated total manufacturing overhead for the year is $2,063,250 and the company's estimated total direct labor-hours for the year is 45,000. The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Assembling products (DLHs) $ 720,000 Preparing batches (batches) 263,250 Product support (product variations) 1,080,000 Total $ 2,063,250 Expected Activity I63E E76I Total DLHs 24,000 21,000 45,000 Batches 1,080 675 1,755 Product variations 2,115 1,485 3,600 The manufacturing overhead that would be applied to a unit of product I63E under the company's traditional costing system is closest to: A) $12.80 B) $39.35 C) $76.03 D) $36.68   2) Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, I63E and E76I, about which it has provided the following data: I63E E76I Direct materials per unit $ 19.90 $ 54.40 Direct labor per unit $ 12.00 $ 31.50 Direct labor-hours per unit 0.80 2.10 Annual production (units) 30,000 10,000 The company's estimated total manufacturing overhead for the year is $2,063,250 and the company's estimated total direct labor-hours for the year is 45,000. The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Assembling products (DLHs) $ 720,000 Preparing batches (batches) 263,250 Product support (product variations) 1,080,000 Total $ 2,063,250 Expected Activity I63E E76I Total DLHs 24,000 21,000 45,000 Batches 1,080 675 1,755 Product variations 2,115 1,485 3,600 The manufacturing overhead that would be applied to a unit of product E76I under the activity-based costing system is closest to: A) $88.28 B) $96.29 C) $184.57 D) $10.13   3) Coudriet Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, P93S and N40S, about which it has provided the following data: P93S N40S Direct materials per unit $ 21.90 $ 54.80 Direct labor per unit $ 8.80 $ 13.20 Direct labor-hours per unit 0.80 1.20 Annual production (units) 35,000 15,000 The company's estimated total manufacturing overhead for the year is $2,172,580 and the company's estimated total direct labor-hours for the year is 46,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Direct labor support (DLHs) $ 552,000 Setting up machines (setups) 419,980 Part administration (part types) 1,200,600 Total $ 2,172,580 Expected Activity P93S N40S Total DLHs 28,000 18,000 46,000 Setups 2,162 1,656 3,818 Part types 1,886 2,116 4,002 The unit product cost of product P93S under the company's traditional costing system is closest to: A) $68.48 B) $63.26 C) $30.70 D) $40.30   4) Coudriet Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, P93S and N40S, about which it has provided the following data: P93S N40S Direct materials per unit $ 21.90 $ 54.80 Direct labor per unit $ 8.80 $ 13.20 Direct labor-hours per unit 0.80 1.20 Annual production (units) 35,000 15,000 The company's estimated total manufacturing overhead for the year is $2,172,580 and the company's estimated total direct labor-hours for the year is 46,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Direct labor support (DLHs) $ 552,000 Setting up machines (setups) 419,980 Part administration (part types) 1,200,600 Total $ 2,172,580 Expected Activity P93S N40S Total DLHs 28,000 18,000 46,000 Setups 2,162 1,656 3,818 Part types 1,886 2,116 4,002 The unit product cost of product N40S under the activity-based costing system is closest to: A) $68.00 B) $68.86 C) $124.68 D) $136.86   5) Poma Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, R78S and N32Y, about which it has provided the following data: R78S N32Y Direct materials per unit $ 27.20 $ 54.70 Direct labor per unit $ 8.80 $ 22.00 Direct labor-hours per unit 0.4 1.0 Annual production (units) 35,000 10,000 The company's estimated total manufacturing overhead for the year is $1,427,040 and the company's estimated total direct labor-hours for the year is 24,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Assembling products (DLHs) $ 672,000 Preparing batches (batches) 255,840 Product support (product variations) 499,200 Total $ 1,427,040 Expected Activity R78S N32Y Total DLHs 14,000 10,000 24,000 Batches 816 1,152 1,968 Product variations 840 408 1,248 The unit product cost of product R78S under the company's traditional costing system is closest to: A) $36.00 B) $59.83 C) $47.20 D) $59.78   6) Poma Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, R78S and N32Y, about which it has provided the following data: R78S N32Y Direct materials per unit $ 27.20 $ 54.70 Direct labor per unit $ 8.80 $ 22.00 Direct labor-hours per unit 0.4 1.0 Annual production (units) 35,000 10,000 The company's estimated total manufacturing overhead for the year is $1,427,040 and the company's estimated total direct labor-hours for the year is 24,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Assembling products (DLHs) $ 672,000 Preparing batches (batches) 255,840 Product support (product variations) 499,200 Total $ 1,427,040 Expected Activity R78S N32Y Total DLHs 14,000 10,000 24,000 Batches 816 1,152 1,968 Product variations 840 408 1,248 The unit product cost of product N32Y under the activity-based costing system is closest to: A) $136.00 B) $76.70 C) $59.30 D) $136.16   7) Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 500 units of Product A and 1,000 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $68,756. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools—Activity 1, Activity 2, and General Factory—with estimated overhead costs and expected activity as follows: Expected Activity Activity Cost Pool Estimated Overhead Costs Product A Product B Total Activity 1 $ 31,031 1,000 300 1,300 Activity 2 $ 22,249 1,600 300 1,900 General Factory $ 15,476 200 200 400 Total $ 68,756 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate under the traditional costing system is closest to: A) $11.71 B) $38.69 C) $171.89 D) $23.87   8) Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 500 units of Product A and 1,000 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $68,756. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools—Activity 1, Activity 2, and General Factory—with estimated overhead costs and expected activity as follows: Expected Activity Activity Cost Pool Estimated Overhead Costs Product A Product B Total Activity 1 $ 31,031 1,000 300 1,300 Activity 2 $ 22,249 1,600 300 1,900 General Factory $ 15,476 200 200 400 Total $ 68,756 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.) The overhead cost per unit of Product B under the traditional costing system is closest to: A) $2.34 B) $7.74 C) $4.77 D) $34.38   9) Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 500 units of Product A and 1,000 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $68,756. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools—Activity 1, Activity 2, and General Factory—with estimated overhead costs and expected activity as follows: Expected Activity Activity Cost Pool Estimated Overhead Costs Product A Product B Total Activity 1 $ 31,031 1,000 300 1,300 Activity 2 $ 22,249 1,600 300 1,900 General Factory $ 15,476 200 200 400 Total $ 68,756 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate (i.e., activity rate) for Activity 2 under the activity-based costing system is closest to: A) $13.91 B) $11.71 C) $74.16 D) $36.19   10) Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 500 units of Product A and 1,000 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $68,756. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools—Activity 1, Activity 2, and General Factory—with estimated overhead costs and expected activity as follows: Expected Activity Activity Cost Pool Estimated Overhead Costs Product A Product B Total Activity 1 $ 31,031 1,000 300 1,300 Activity 2 $ 22,249 1,600 300 1,900 General Factory $ 15,476 200 200 400 Total $ 68,756 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.) The overhead cost per unit of Product B under the activity-based costing system is closest to: A) $45.84 B) $7.74 C) $34.38 D) $18.41   11) Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Njombe has decided to switch to an activity-based costing system for manufacturing overhead costs that uses the three activity cost pools listed below. Selling prices are still to be set at 200% of unit product cost under the new system. Information on these cost pools for next year are as follows: Activity Cost Pool Activity Measure Estimated Activity Estimated Overhead Cost Machine Setups Number of setups 400 $ 150,000 Quality Control Number of inspections 1,500 $ 180,000 Other Overhead Machine hours 30,000 $ 480,000 Information (on a per unit basis) related to three popular products at Njombe are as follows: Model #19 Model #36 Model #58 Direct material cost $ 400 $ 540 $ 310 Direct labor cost $ 810 $ 600 $ 220 Number of setups 2 3 1 Number of inspections 1 3 1 Number of machine hours 4 8 10 Under the traditional costing system, what would be the selling price of one unit of Model #36? A) $2,536 B) $2,712 C) $4,080 D) $5,506   12) Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Njombe has decided to switch to an activity-based costing system for manufacturing overhead costs that uses the three activity cost pools listed below. Selling prices are still to be set at 200% of unit product cost under the new system. Information on these cost pools for next year are as follows: Activity Cost Pool Activity Measure Estimated Activity Estimated Overhead Cost Machine Setups Number of setups 400 $ 150,000 Quality Control Number of inspections 1,500 $ 180,000 Other Overhead Machine hours 30,000 $ 480,000 Information (on a per unit basis) related to three popular products at Njombe are as follows: Model #19 Model #36 Model #58 Direct material cost $ 400 $ 540 $ 310 Direct labor cost $ 810 $ 600 $ 220 Number of setups 2 3 1 Number of inspections 1 3 1 Number of machine hours 4 8 10 Under the activity-based costing system, what would be the selling price of one unit of Model #36? A) $2,536 B) $2,712 C) $4,080 D) $5,506   13) Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Njombe has decided to switch to an activity-based costing system for manufacturing overhead costs that uses the three activity cost pools listed below. Selling prices are still to be set at 200% of unit product cost under the new system. Information on these cost pools for next year are as follows: Activity Cost Pool Activity Measure Estimated Activity Estimated Overhead Cost Machine Setups Number of setups 400 $ 150,000 Quality Control Number of inspections 1,500 $ 180,000 Other Overhead Machine hours 30,000 $ 480,000 Information (on a per unit basis) related to three popular products at Njombe are as follows: Model #19 Model #36 Model #58 Direct material cost $ 400 $ 540 $ 310 Direct labor cost $ 810 $ 600 $ 220 Number of setups 2 3 1 Number of inspections 1 3 1 Number of machine hours 4 8 10 In comparing the traditional system with the activity-based costing system, which of Njombe's Models had higher unit product costs under the traditional system? A) #19 B) #58 C) #19 and #58 D) #36 and #58   14) Look Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, N06D and M09K, about which it has provided the following data: N06D M09K Direct materials per unit $ 17.70 $ 62.50 Direct labor per unit $ 5.00 $ 16.00 Direct labor-hours per unit 0.50 1.60 Annual production (units) 40,000 15,000 The company's estimated total manufacturing overhead for the year is $2,532,200 and the company's estimated total direct labor-hours for the year is 44,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Supporting direct labor (DLHs) $ 880,000 Setting up machines (setups) 376,200 Parts administration (part types) 1,276,000 Total $ 2,532,200 Expected Activity N06D M09K Total DLHs 20,000 24,000 44,000 Setups 1,408 1,100 2,508 Part types 1,540 1,012 2,552 The manufacturing overhead that would be applied to a unit of product N06D under the company's traditional costing system is closest to: A) $28.78 B) $10.00 C) $63.31 D) $34.53   15) Look Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, N06D and M09K, about which it has provided the following data: N06D M09K Direct materials per unit $ 17.70 $ 62.50 Direct labor per unit $ 5.00 $ 16.00 Direct labor-hours per unit 0.50 1.60 Annual production (units) 40,000 15,000 The company's estimated total manufacturing overhead for the year is $2,532,200 and the company's estimated total direct labor-hours for the year is 44,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Supporting direct labor (DLHs) $ 880,000 Setting up machines (setups) 376,200 Parts administration (part types) 1,276,000 Total $ 2,532,200 Expected Activity N06D M09K Total DLHs 20,000 24,000 44,000 Setups 1,408 1,100 2,508 Part types 1,540 1,012 2,552 The manufacturing overhead that would be applied to a unit of product M09K under the activity-based costing system is closest to: A) $76.73 B) $92.08 C) $11.00 D) $168.81   16) Bullie Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, D31X and U75X, about which it has provided the following data: D31X U75X Direct materials per unit $ 29.20 $ 47.40 Direct labor per unit $ 1.10 $ 23.10 Direct labor-hours per unit 0.10 2.10 Annual production (units) 35,000 15,000 The company's estimated total manufacturing overhead for the year is $1,147,650 and the company's estimated total direct labor-hours for the year is 35,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Assembling products (DLHs) $ 140,000 Preparing batches (batches) 241,150 Axial milling (MHs) 766,500 Total $ 1,147,650 D31X U75X Total Assembling products 3,500 31,500 35,000 Preparing batches 560 1,295 1,855 Axial milling 1,540 1,015 2,555 Required: a. Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system. b. Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system.   17) Torri Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, B40W and C63J, about which it has provided the following data: B40W C63J Direct materials per unit $ 34.90 $ 63.70 Direct labor per unit $ 20.80 $ 62.40 Direct labor-hours per unit 0.80 2.40 Annual production (units) 35,000 15,000 The company's estimated total manufacturing overhead for the year is $2,656,000 and the company's estimated total direct labor-hours for the year is 64,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Assembling products (DLHs) $ 1,216,000 Preparing batches (batches) 480,000 Milling (MHs) 960,000 Total $ 2,656,000 Activities B40W C63J Total Assembling products 28,000 36,000 64,000 Preparing batches 2,304 2,496 4,800 Milling 1,088 2,112 3,200 Required: a. Determine the unit product cost of each of the company's two products under the traditional costing system. b. Determine the unit product cost of each of the company's two products under activity-based costing system.   18) Cabigas Corporation manufactures two products, Product C and Product D. The company estimated it would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below: Product C Product D Estimated volume 2,000 units 2,700 units Direct labor per unit 2.00 hours 0.80 hour Direct labor-hours per unit $ 21.50 $ 24.10 Annual production (units) $ 24.00 $ 9.60 Required: a. Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year. b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Expected Activity Activity Cost Pool Estimated Overhead Costs Product C Product D Total Machine setups $ 13,630 130 190 290 Purchase orders 85,750 750 1,000 1,750 General Factory 67,760 4,000 2,160 6,160 Total $ 167,140 Determine the unit product cost of each product for the current period using the activity-based costing approach. General factory overhead is allocated based on direct labor-hours.   19) Welk Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, H16Z and P25P, about which it has provided the following data: H16Z P25P Direct materials per unit $ 10.20 $ 50.50 Direct labor per unit $ 8.40 $ 25.20 Direct labor-hours per unit 0.40 1.20 Annual production (units) 30,000 10,000 The company's estimated total manufacturing overhead for the year is $1,464,480 and the company's estimated total direct labor-hours for the year is 24,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Supporting direct labor (DLHs) $ 552,000 Setting up machines (setups) 132,480 Parts administration (part types) 780,000 Total $ 1,464,480 H16Z P25P Total Supporting direct labor 12,000 12,000 24,000 Setting up machines 864 240 1,104 Parts administration 600 960 1,560 Required: a. Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system. b. Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system.   20) Werger Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, W82R and L48S, about which it has provided the following data: W82R L48S Direct materials per unit $ 11.50 $ 62.90 Direct labor per unit $ 2.00 $ 13.00 Direct labor-hours per unit 0.20 1.30 Annual production (units) 45,000 10,000 The company's estimated total manufacturing overhead for the year is $1,521,960 and the company's estimated total direct labor-hours for the year is 22,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Supporting direct labor (DLHs) $ 352,000 Setting up machines (setups) 201,960 Parts administration (part types) 968,000 Total $ 1,521,960 Activities W82R L48S Total Supporting direct labor 9,000 13,000 22,000 Setting up machines 814 374 1,188 Parts administration 924 1,012 1,936 Required: a. Determine the unit product cost of each of the company's two products under the traditional costing system. b. Determine the unit product cost of each of the company's two products under activity-based costing system. Managerial Accounting, 16e (Garrison) Chapter 3 Job Order Costing: Cost Flows and External Reporting 1) When raw materials are purchased, they are recorded as an asset. 2) The absorption cost approach provides for the absorption of all manufacturing costs, fixed and variable, into units of product. 3) The following entry would be used to record depreciation on manufacturing equipment: Manufacturing Overhead XXX Accumulated Depreciation XXX 4) If a company uses a predetermined overhead rate, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead account and will be recorded on the job cost sheets. 5) The journal entry for cost of goods manufactured includes the costs of units that are partially completed. 6) Advertising costs should NOT be charged to the Manufacturing Overhead account. 7) The following entry would be used to record the transfer of $40,000 of direct material and $10,000 of indirect material from the storeroom to production: Direct Materials 40,000 Indirect Materials 10,000 Raw Materials 50,000 8) Entry (16) in the below T-account represents the cost of goods manufactured transferred to Finished Goods from Work in Process. Finished Goods Bal. 40,000 (16) 520,000 (15) 540,000 Bal. 60,000 9) Entry (11) in the below T-account could represent overhead cost applied to Work in Process. Work In Process Bal. 40,000 (11) 330,000 (2) 100,000 (3) 90,000 (7) 120,000 Bal. 20,000 10) Entry (1) in the below T-account represents the purchase rather than use of raw materials. Raw Materials Bal. 10,000 (2) 60,000 (1) 70,000 Bal. 20,000 11) Entry (4) in the below T-account could represent the cost of overhead applied to Work in Process. Manufacturing Overhead (2) 4,000 (7) 180,000 (3) 30,000 (4) 80,000 (5) 40,000 (6) 36,000 190,000 180,000 Bal. 10,000 12) Entry (4) in the T-account below represents raw materials requisitioned for use in production. Raw Materials Bal. 15,000 (4) 87,000 (3) 94,000 Bal. 22,000 13) Entry (4) in the below T-account could represent the cost of property taxes and insurance incurred on the factory. Manufacturing Overhead (2) 4,000 (7) 180,000 (3) 30,000 (4) 80,000 (5) 40,000 (6) 36,000 190,000 180,000 Bal. 10,000 14) The $5,000 balance in the T-account below represents overapplied manufacturing overhead for the period. Manufacturing Overhead (2) 4,000 (7) 180,000 (3) 30,000 (4) 80,000 (5) 40,000 (6) 36,000 190,000 180,000 Bal. 10,000 15) In the Schedule of Cost of Goods Manufactured, Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory. 16) Assume that a company closes out any manufacturing overhead overapplied or underapplied to cost of goods sold. Then in the Schedule of Cost of Goods Sold, Adjusted cost of goods sold = Unadjusted cost of goods sold + Overapplied overhead – Underapplied overhead. 17) In the Schedule of Cost of Goods Manufactured, Total raw materials available = Ending raw materials inventory + Purchases of raw materials. 18) In the Schedule of Cost of Goods Sold, Cost of goods available for sale = Ending finished goods inventory + Cost of goods manufactured. 19) In the Schedule of Cost of Goods Sold, Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured − Ending finished goods inventory. 20) On a manufacturing company's income statement, direct labor is separately listed as an expense. 21) In the Schedule of Cost of Goods Manufactured, Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials − Ending raw materials inventory. 22) The schedule of cost of goods manufactured contains three elements of product costs—direct materials, direct labor, and manufacturing overhead—and it summarizes the portions of those costs that remain in ending Work in Process inventory and that are transferred out of Work in Process into Finished Goods. 23) In the Schedule of Cost of Goods Manufactured, Total direct materials = Raw materials used in production – Ending raw materials inventory. 24) If a company closes any underapplied or overapplied manufacturing overhead to the Cost of Goods Sold account, then Cost of Goods Sold will be debited if manufacturing overhead is overapplied for the period. 25) A credit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead was overapplied. 26) Two of the reasons why manufacturing overhead may be underapplied are: (1) the estimated total manufacturing overhead cost may have been too high; and (2) the estimated total amount of the allocation base may have been too low. 27) If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be overapplied. 28) The entire difference between the actual manufacturing overhead cost for a period and the applied manufacturing overhead cost is typically closed to the Work In Process account. 29) Which of the following statements is true? I. Overhead can be applied slowly as a job is worked on. II. Overhead can be applied when the job is completed. III. Overhead should be applied to any job not completed at year-end in order to properly value the work in process inventory. A) Only statement I is true. B) Only statement II is true. C) Both statements I and II are true. D) Statements I, II, and III are all true. 30) In a job-order costing system, indirect labor cost is usually recorded as a debit to: A) Manufacturing Overhead. B) Finished Goods. C) Work in Process. D) Cost of Goods Sold. 31) In a job-order costing system, manufacturing overhead applied is recorded as a debit to: A) Raw Materials inventory. B) Finished Goods inventory. C) Work in Process inventory. D) Cost of Goods Sold. 32) In a job-order costing system, which of the following events would trigger recording data on a job cost sheet? A) the purchase of direct materials B) the payment of fire insurance on the factory building C) the payment for product advertising D) none of the above 33) The journal entry to record applying overhead during the production process is: A) Manufacturing Overhead XXX Work In Process XXX B) Finished Goods XXX Manufacturing Overhead XXX C) Manufacturing Overhead XXX Finished Goods XXX D) Work In Process XXX Manufacturing Overhead XXX 34) Refer to the T-account below: Manufacturing Overhead (2) 9,000 (2) 167,000 (3) 15,000 (4) 80,000 (5) 30,000 (6) 25,000 159,000 167,000 Bal. 8,000 The ending balance of $8,000 represents which of the following? A) Underapplied overhead. B) Manufacturing overhead that will be carried over to the next period. C) Overapplied overhead. D) A bookkeeping error. 35) Refer to the T-account below: Raw Materials Bal. 15,000 (9) 75,000 (5) 85,000 Bal. 25,000 Entry (5) could represent which of the following? A) Payments for raw materials. B) Requisitions of raw materials to be used in production. C) Purchases of raw materials. D) Overhead cost applied to Work in Process. 36) Refer to the T-account below: Prepaid Insurance Bal. 30,000 (8) 9,000 Entry (8) could represent which of the following? A) Payment of insurance for the upcoming period. B) Insurance cost incurred on the factory which is added to the Manufacturing Overhead account. C) Overhead cost applied to Work in Process. D) Overhead cost applied to Finished Goods. 37) When manufacturing overhead is applied to production, it is added to: A) the Cost of Goods Sold account. B) the Raw Materials account. C) the Work in Process account. D) the Finished Goods inventory account. 38) Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs: A) started in process during the period. B) in process during the period. C) completed and sold during the period. D) completed during the period. 39) Refer to the T-account below: Manufacturing Overhead (2) 4,000 (7) 150,000 (3) 15,000 (4) 80,000 (5) 30,000 (6) 25,000 154,000 150,000 Bal. 4,000 Entry (4) could represent which of the following except? A) Indirect labor cost incurred. B) Factory insurance cost. C) Overhead cost applied to Work in Process. D) Depreciation on factory equipment. 40) Refer to the T-account below: Work In Process Bal. 30,000 (12) 270,000 (4) 90,000 (6) 70,000 (9) 110,000 Bal. 30,000 Entry (12) could represent which of the following? A) Direct labor cost incurred in production. B) Purchases of raw materials. C) The cost of goods manufactured transferred to Finished Goods. D) The cost of indirect materials incurred in production. 41) In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the "Total raw materials available" is computed by adding together the "Beginning raw materials inventory" and: A) Ending raw materials inventory B) Raw materials used in production C) Purchases of raw materials D) Indirect materials included in manufacturing overhead 42) In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations? A) Cost of goods manufactured = Total manufacturing costs + Ending work in process inventory – Beginning work in process inventory B) Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory C) Cost of goods manufactured = Total manufacturing costs + Beginning finished goods inventory – Ending finished goods inventory D) Cost of goods manufactured = Total manufacturing costs + Ending finished goods inventory – Beginning finished goods inventory 43) When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would be true? A) Work in Process will decrease. B) Cost of Goods Sold will increase. C) Net income will decrease. D) Gross margin will increase. 44) If manufacturing overhead is underapplied, then: A) actual manufacturing overhead cost is less than estimated manufacturing overhead cost. B) the amount of manufacturing overhead cost applied to Work in Process is less than the actual manufacturing overhead cost incurred. C) the predetermined overhead rate is too high. D) the Manufacturing Overhead account will have a credit balance at the end of the year. 45) Overapplied manufacturing overhead would result if: A) the plant was operated at less than normal capacity. B) manufacturing overhead costs incurred were less than estimated manufacturing overhead costs. C) manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production. D) manufacturing overhead costs incurred were greater than manufacturing overhead costs charged to production. 46) During July at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record the requisition from the storeroom would include a: A) debit to Work in Process of $79,000 B) debit to Work in Process of $83,000 C) credit to Manufacturing Overhead of $4,000 D) debit to Raw Materials of $83,000 47) Gullett Corporation had $26,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $75,000 of raw materials. The journal entry to record the purchase of raw materials would include a: A) debit to Raw Materials of $101,000 B) credit to Raw Materials of $75,000 C) debit to Raw Materials of $75,000 D) credit to Raw Materials of $101,000 48) Gallon Corporation had $24,000 of raw materials on hand on April 1. During the month, the Corporation purchased an additional $52,000 of raw materials. During April, $62,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $2,000. The debits to the Work in Process account as a consequence of the raw materials transactions in April total: A) $60,000 B) $62,000 C) $0 D) $52,000 49) Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Direct labor cost $ 574,000 Manufacturing overhead: Indirect labor cost $ 163,000 Other manufacturing overhead costs incurred $ 584,000 What is the journal entry to record the direct and indirect labor costs incurred during the year? A) Wages Payable 737,000 Direct Labor 574,000 Manufacturing Overhead 163,000 B) Work in Process 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000 C) Wages Payable 737,000 Work in Process 574,000 Manufacturing Overhead 163,000 D) Direct Labor 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000 50) Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work in Process was $92,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a: A) debit to Manufacturing Overhead of $92,000 B) debit to Work in Process of $90,000 C) credit to Manufacturing Overhead of $92,000 D) credit to Work in Process of $90,000 51) Lister Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Estimated total manufacturing overhead at the beginning of the year $624,000 Estimated direct labor-hours at the beginning of the year 39,000 direct labor-hours Results of operations: Actual direct labor-hours 36,000 direct labor-hours Manufacturing Overhead Indirect labor cost $ 131,000 Other manufacturing overhead costs incurred $ 543,000 The total amount of manufacturing overhead applied to production is: A) $1,547,000 B) $576,000 C) $624,000 D) $674,000 52) Leelanau Corporation uses a job-order costing system. The following data are for last year: Work in process beginning balance $ 10,500 Work in process ending balance $ 19,000 Cost of goods manufactured $ 323,000 Direct materials $ 115,000 Direct Labor $ 78,000 Leelanau applies overhead using a predetermined rate. What amount of overhead was applied to work in process last year? A) $138,500 B) $121,500 C) $130,000 D) $203,500 53) During March, Zea Inc. transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000. The journal entries to record these transactions would include a: A) credit to Cost of Goods Sold of $56,000. B) debit to Finished Goods of $56,000. C) credit to Work in Process of $50,000. D) credit to Finished Goods of $50,000. 54) Firlit Corporation incurred $69,000 of actual Manufacturing Overhead costs during October. During the same period, the Manufacturing Overhead applied to Work in Process was $70,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: A) debit to Work in Process of $70,000 B) credit to Work in Process of $70,000 C) debit to Manufacturing Overhead of $69,000 D) credit to Manufacturing Overhead of $69,000 55) Brendal Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Estimated total manufacturing overhead at the beginning of the year $693,000 Estimated direct labor-hours at the beginning of the year 42,000 direct labor- hours Results of operations: Raw materials (all direct) requisitioned for use in production $ 525,000 Direct labor cost $ 690,000 Actual direct labor-hours 49,000 direct labor- hours Manufacturing Overhead Indirect labor cost $ 138,000 Other manufacturing overhead costs incurred $ 506,000 How much is the total manufacturing cost added to Work in Process during the year? A) $1,215,000 B) $1,803,000 C) $1,498,500 D) $2,023,500 56) Firebaugh Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Raw materials purchased on account $ 520,000 Raw materials (all direct) requisitioned for use in production $ 467,000 What is the journal entry to record raw materials used in production? A) Raw Materials 520,000 Work In Process 520,000 B) Raw Materials 467,000 Work In Process 467,000 C) Work In Process 520,000 Raw Materials 520,000 D) Work In Process 467,000 Raw Materials 467,000 57) On December 1, Mogro Corporation had $26,000 of raw materials on hand. During the month, the Corporation purchased an additional $60,000 of raw materials. During December, $62,000 of raw materials were requisitioned from the storeroom for use in production. The debits entered in the Raw Materials account during the month of December total: A) $26,000 B) $86,000 C) $60,000 D) $62,000 58) In October, Raddatz Inc. incurred $73,000 of direct labor costs and $6,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: A) debit to Manufacturing Overhead of $6,000 B) debit to Work in Process of $79,000 C) credit to Manufacturing Overhead of $6,000 D) credit to Work in Process of $79,000 59) During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: A) debit to Work in Process of $67,000. B) credit to Work in Process of $74,000. C) debit to Work in Process of $74,000. D) credit to Work in Process of $67,000. 60) At the beginning of December, Altro Corporation had $26,000 of raw materials on hand. During the month, the Corporation purchased an additional $76,000 of raw materials. During December, $72,000 of raw materials were requisitioned from the storeroom for use in production. The credits entered in the Raw Materials account during the month of December total: A) $26,000 B) $102,000 C) $76,000 D) $72,000 61) During September at Renfro Corporation, $65,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record this requisition would include a debit to Manufacturing Overhead of: A) $65,000 B) $4,000 C) $0 D) $61,000 62) Tomlison Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Cost of goods manufactured $ 1,589,000 Cost of goods sold (unadjusted) $ 1,517,000 The journal entry to record the unadjusted Cost of Goods Sold is: A) Finished Goods 1,517,000 Cost of Goods Sold 1,517,000 B) Cost of Goods Sold 1,517,000 Finished Goods 1,517,000 C) Finished Goods 1,589,000 Cost of Goods Sold 1,589,000 D) Cost of Goods Sold 1,589,000 Finished Goods 1,589,000 63) Ruddick Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Cost of goods manufactured $ 1,486,000 Cost of goods sold (unadjusted) $ 1,337,000 The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is: A) Finished Goods 1,337,000 Work in Process 1,337,000 B) Finished Goods 1,486,000 Work in Process 1,486,000 C) Work in Process 1,337,000 Finished Goods 1,337,000 D) Work in Process 1,486,000 Finished Goods 1,486,000 64) Calfee Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Beginning inventories: Raw materials $ 40,000 Work in process $ 19,000 Estimated total manufacturing overhead at the beginning of the year $ 595,000 Estimated direct labor-hours at the beginning of the year 35,000 direct labor- hours Results of operations: Raw materials purchased on account $ 423,000 Raw materials (all direct) requisitioned for use in production $ 420,000 Direct labor cost $ 641,000 Actual direct labor-hours 33,000 direct labor- hours Manufacturing overhead: Indirect labor cost $ 143,000 Other manufacturing overhead costs incurred $ 531,000 Cost of goods manufactured $ 1,441,000 The ending balance in the Work in Process inventory account is: A) $200,000 B) $162,000 C) $220,000 D) $181,000 65) Tusa Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Estimated total manufacturing overhead at the beginning of the year $638,250 Estimated direct labor-hours at the beginning of the year 37,000 direct labor- hours Results of operations: Actual direct labor-hours 34,000 direct labor-hours Manufacturing overhead: Indirect labor cost $ 148,000 Other manufacturing overhead costs incurred $ 450,000 Cost of goods manufactured $ 1,611,000 Cost of goods sold (unadjusted) $ 1,518,000 The adjusted Cost of Goods Sold for the year is: A) $1,518,000 B) $1,506,500 C) $1,642,000 D) $1,529,500 66) Plasencia Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Beginning inventories: Finished goods $ 33,000 Estimated total manufacturing overhead at the beginning of the year $ 635,500 Estimated direct labor-hours at the beginning of the year 41,000 direct labor- hours Results of operations: Actual direct labor-hours 42,000 direct labor-hours Manufacturing overhead: Indirect labor cost $ 177,000 Other manufacturing overhead costs incurred $ 444,000 Selling and administrative: Selling and administrative salaries $ 280,000 Other selling and administrative expenses $ 310,000 Cost of goods manufactured $ 1,501,000 Sales revenue $ 2,704,000 Cost of goods sold (unadjusted) $ 1,416,000 The net operating income is: A) $1,318,000 B) $1,008,000 C) $728,000 D) $1,038,000 67) Molzahn Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Estimated total manufacturing overhead at the beginning of the year $481,250 Estimated direct labor-hours at the beginning of the year 35,000 direct labor- hours Results of operations: Actual direct labor-hours 40,000 direct labor-hours Manufacturing overhead: Indirect labor cost $ 179,000 Other manufacturing overhead costs incurred $ 465,000 Manufacturing overhead is overapplied or underapplied by: A) $165,000 Overapplied B) $94,000 Underapplied C) $165,000 Underapplied D) $94,000 Overapplied 68) Cai Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Raw Materials Bal. 1/1 17,000 Credits ? Debits 97,000 Bal. 12/31 30,000 Work In Process Bal. 1/1 19,000 Credits 506,000 Direct materials 74,000 Direct labor 13,000 Overhead applied 257,000 Bal. 12/31 ? The cost of indirect materials requisitioned for use in production during the year was: A) $74,000 B) $10,000 C) $40,000 D) $13,000 69) The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Bal 0 (b) 154,000 (a) 164,000 10,000 Work In Process Bal 0 (f) 510,000 (b) 132,000 (c) 168,000 (e) 210,000 0 Finished Goods Bal 0 (g) 460,000 (f) 510,000 50,000 Manufacturing Overhead (b) 22,000 (e) 210,000 (c) 26,000 (d) 156,000 (h) 6,000 6,000 Cost of Goods Sold (g) 460,000 (h) 6,000 454,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year? A) $6,000 underapplied B) $6,000 overapplied C) $26,000 underapplied D) $26,000 overapplied 70) Fisher Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information about Fisher Corporation's Work in Process inventory account has been provided for the month of May: May 1 balance $ 26,000 Debits During May: Direct Materials $ 40,000 Direct Labor $ 50,000 Manufacturing Overhead $ 37,500 During the month, Fisher Corporation's Work in Process inventory account was credited for $120,500, which represented the Cost of Goods Manufactured for the month. Only one job remained in process on May 31; this job had been charged with $9,600 of applied overhead cost. The amount of direct materials cost in the unfinished job would be: A) $10,600 B) $16,700 C) $12,800 D) $23,400 71) Tatar Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Beginning inventories: Raw materials $ 37,000 Work in process $ 15,000 Results of operations: Raw materials purchased on account $ 480,000 Raw materials (all direct) requisitioned for use in production $ 434,000 How much is the ending balance in the Raw Materials inventory account? A) $37,000 B) $120,000 C) $83,000 D) $517,000 72) Hougham Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Raw Materials Bal. 1/1 15,000 Credits ? Debits 109,000 Bal. 12/31 21,000 The cost of raw materials requisitioned for use in production during the year was: A) $109,000 B) $145,000 C) $103,000 D) $124,000 73) The following accounts are from last year's books of Sharp Manufacturing: Raw Materials Bal 0 (b) 154,000 (a) 164,000 10,000 Work In Process Bal 0 (f) 510,000 (b) 132,000 (c) 168,000 (e) 210,000 0 Finished Goods Bal 0 (g) 460,000 (f) 510,000 50,000 Manufacturing Overhead (b) 22,000 (e) 210,000 (c) 26,000 (d) 156,000 6,000 Cost of Goods Sold (g) 460,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year? A) $164,000 B) $154,000 C) $132,000 D) $168,000 74) The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Bal 0 (b) 154,000 (a) 164,000 10,000 Work In Process Bal 0 (f) 510,000 (b) 132,000 (c) 168,000 (e) 210,000 0 Finished Goods Bal 0 (g) 460,000 (f) 510,000 50,000 Manufacturing Overhead (b) 22,000 (e) 210,000 (c) 26,000 (d) 156,000 6,000 Cost of Goods Sold (g) 460,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year? A) $252,000 B) $454,000 C) $510,000 D) $460,000 75) Solt Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Finished Goods Bal. 1/1 38,000 Credits ? Debits ? Bal. 12/31 50,000 The Cost of Goods Manufactured for the year was $415,000.The unadjusted Cost of Goods Sold for the year was: A) $503,000 B) $415,000 C) $403,000 D) $453,000 76) Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows: Inventories Balance November 1 Balance November 30 Raw materials $ 7,000 $ 4,000 Work in process $ 6,000 $ 7,500 Finished goods $ 10,000 $ 12,000 A) $31,500 B) $29,500 C) $27,000 D) $33,000 77) Maysonet Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Work in Process Bal. 1/1 18,000 Credits ? Debits 520,000 Bal. 12/31 34,000 The cost of completed jobs transferred from Work in Process to Finished Goods during the year was : A) $520,000 B) $572,000 C) $538,000 D) $504,000 78) St. Johns Corporation uses a job-order costing system and has provided the following partially completed summary T-accounts for the just completed period: Work In Process Bal 22,000 Credits 534,000 Direct materials 85,000 Direct labor 161,000 Overhead applied 273,000 Bal. ? Manufacturing Overhead Debits 200,000 Credits ? Manufacturing overhead for the period was: A) $7,000 Underapplied B) $73,000 Underapplied C) $73,000 Overapplied D) $7,000 Overapplied 79) Tenneson Corporation's cost of goods manufactured for the just completed month was $151,000 and its inventories were as follows: Beginning Ending Work in process inventory $ 63,000 $ 66,000 Finished goods inventory $ 34,000 $ 48,000 How much was the cost of goods available for sale on the Schedule of Cost of Goods Sold? A) $137,000 B) $185,000 C) $151,000 D) $136,000 80) Shane Corporation has provided the following data concerning last month's operations. Direct materials $ 23,000 Direct labor $ 58,000 Manufacturing overhead applied to Work in Process $ 92,000 Beginning Ending Work in process inventory $ 56,000 $ 69,000 Finished goods inventory $ 33,000 $ 36,000 How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $161,000 B) $157,000 C) $160,000 D) $193,000 81) Dipaola Corporation has provided the following data concerning last month's operations. Purchases of raw materials $ 26,000 Indirect materials included in manufacturing overhead $ 6,000 Direct labor cost $ 58,000 Manufacturing overhead applied to Work in Process $ 87,000 Overapplied overhead $ 6,000 Beginning Ending Raw materials inventory $ 12,000 $ 18,000 Work in process inventory $ 46,000 $ 64,000 Finished goods inventory $ 31,000 $ 46,000 How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured? A) $38,000 B) $32,000 C) $14,000 D) $26,000 82) Emigh Corporation's cost of goods manufactured for the just completed month was $146,000 and its overhead was overapplied by $5,000. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $37,000.The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much was the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $144,000 B) $146,000 C) $181,000 D) $139,000 83) Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $52,000 and at the end of the month was $30,000. The cost of goods manufactured for the month was $212,000. The actual manufacturing overhead cost incurred was $55,000 and the manufacturing overhead cost applied to Work in Process was $58,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is: A) $231,000 B) $190,000 C) $234,000 D) $212,000 84) Able Corporation uses a job-order costing system. In reviewing its records at the end of the year, the company has discovered that $2,000 of raw materials has been drawn from the storeroom and used in the production of Job 110, but that no entry has been made in the accounting records for the use of these materials. Job 110 has been completed but it is unsold at year end. This error will cause: A) Work in Process to be understated by $2,000 at year end. B) Cost of Goods Manufactured to be overstated by $2,000 for the year. C) Finished Goods to be understated by $2,000 at the end of the year. D) Cost of Goods Sold to be overstated by $2,000 for the year. 85) Frankin Corporation has provided the following data concerning last month's operations. Purchases of raw materials $ 26,000 Indirect materials included in manufacturing overhead $ 6,000 Direct labor cost $ 58,000 Manufacturing overhead applied to Work in Process $ 97,000 Beginning Ending Raw materials inventory $ 11,000 $ 17,000 Work in process inventory $ 52,000 $ 66,000 How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured? A) $175,000 B) $221,000 C) $155,000 D) $169,000 86) Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $22,000 at the beginning of the month and $17,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $55,000 and direct labor cost of $28,000. The actual manufacturing overhead cost incurred was $53,000. The manufacturing overhead cost applied to Work in Process was $51,000. The cost of goods manufactured for June was: A) $141,000. B) $139,000. C) $134,000. D) $136,000. 87) Bocchini Corporation has provided the following data concerning last month's operations. Purchases of raw materials $ 35,000 Indirect materials included in manufacturing overhead $ 6,000 Direct labor cost $ 58,000 Manufacturing overhead applied to Work in Process $ 84,000 Beginning Ending Raw materials inventory $ 14,000 $ 19,000 Work in process inventory $ 55,000 $ 58,000 Finished goods inventory $ 39,000 $ 37,000 How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $165,000 B) $163,000 C) $169,000 D) $202,000 88) Borchardt Corporation has provided the following data concerning last month's operations. Direct materials $ 29,000 Direct labor $ 58,000 Manufacturing overhead applied to Work in Process $ 82,000 Beginning Ending Work in process inventory $ 66,000 $ 57,000 How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured? A) $235,000 B) $178,000 C) $173,000 D) $169,000 89) Weyant Corporation has provided the following data concerning last month's operations. Direct materials $ 18,000 Direct labor $ 58,000 Manufacturing overhead applied to Work in Process $ 75,000 Overapplied overhead $ 6,000 Beginning Ending Raw materials inventory $ 13,000 $ 19,000 Work in process inventory $ 64,000 $ 74,000 Finished goods inventory $ 32,000 $ 40,000 The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $173,000 B) $127,000 C) $133,000 D) $141,000 90) Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $20,000 and the ending balance was $36,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $111,000, of which $2,000 consisted of raw materials classified as indirect materials. The direct materials cost for May was: A) $63,000 B) $47,000 C) $79,000 D) $45,000 91) Holmstrom Corporation has provided the following data concerning last month's operations. Direct materials $ 14,000 Direct labor $ 58,000 Manufacturing overhead applied to Work in Process $ 79,000 Beginning Ending Work in process inventory $ 47,000 $ 53,000 Finished goods inventory $ 41,000 $ 42,000 How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold? A) $186,000 B) $145,000 C) $144,000 D) $138,000 92) Cienfuegos Corporation has provided the following data concerning last month's operations. Purchases of raw materials $ 36,000 Indirect materials included in manufacturing overhead $ 4,000 Direct labor cost $ 58,000 Manufacturing overhead applied to Work in Process $ 90,000 Overapplied overhead $ 3,000 Beginning Ending Raw materials inventory $ 10,000 $ 21,000 Work in process inventory $ 62,000 $ 70,000 Finished goods inventory $ 36,000 $ 40,000 The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much is the adjusted cost of goods