46. Juanita Corporation uses
46. Juanita Corporation uses a job-order cost system and applies overhead on the basis of direct labor cost. At the end of October, Juanita had one job still in process. The job cost sheet for this job contained the following information:
|
Direct materials ……………………………………. |
$480 |
|
Direct labor ………………………………………….. |
$150 |
|
Manufacturing overhead applied …………….. |
$600 |
An additional $ 100 of labor was needed in November to complete this job. For this job, how much should Juanita have transferred to finished goods inventory in November when it was completed?
A) $1,330
B) $500
C) $1,230
D) $1,730
Garrison, Managerial Accounting, 12th Edition 83
Chapter 3 Systems Design: Job-Order Costing
47. Wall Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company’s estimated costs for the next year are:
|
Direct materials …………………………………………….. |
$3,000 |
|
Direct labor …………………………………………………… |
$20,000 |
|
Depreciation on factory equipment ………………….. |
$6,000 |
|
Rent on factory ……………………………………………… |
$12,000 |
|
Sales salaries …………………………………………………. |
$29,000 |
|
Factory utilities ……………………………………………… |
$15,000 |
|
Indirect labor ………………………………………………… |
$6,000 |
It is estimated that 10,000 direct labor hours will be worked during the year. The predetermined overhead rate will be:
A) $3.90
B) $5.90
C) $6.80
D) $9.10
48. The following information relates to Spock Manufacturing Company:
|
Total estimated manufacturing overhead at beginning of year .. |
$620,000 |
|
Total manufacturing overhead applied to production during |
|
|
the year ………………………………………………………………………… |
$625,000 |
|
Total manufacturing overhead incurred during the year ………… |
$618,000 |
The company closes out the balance in the Manufacturing Overhead to Cost of Goods Sold at the end of the year. In the journal entry to close out the balance, the company would:
A) debit cost of goods sold for $2,000
B) credit cost of goods sold for $2,000
C) credit cost of goods sold for $7,000
D) debit cost of goods sold for $7,000
84 Garrison, Managerial Accounting, 12th Edition
Chapter 3 Systems Design: Job-Order Costing
49. Rio Manufacturing Company uses a job order cost system. At the beginning of February, Rio only had one job in process, Job #594. The direct costs assigned to this job at that time were $800 of materials and $650 of labor. Job #594 was finished during February incurring additional direct costs of $120 for materials and $370 for labor. Job #595 was started and finished during February. The direct costs assigned to this job were $310 for materials and $190 for labor. Job #596 was started during February but was not finished by the end of the month. The direct costs assigned to this job were $740 for materials and $300 for labor. Rio applies manufacturing overhead to its products at a rate of 200% of direct labor cost. What is Rio’s cost of goods manufactured for February?
A) $2,440
B) $3,750
C) $4,860
D) $6,500
50. Serenje Manufacturing Company produces nameplates and uses a job-order cost system. The following amounts relate to nameplate production for the month of June:
|
Work in process inventory, June 1 ……………………………………………… |
$620 |
|
Cost of materials directly assigned to production during June ……….. |
$1,800 |
|
Cost of labor directly assigned to production during June ……………… |
$1,200 |
|
Cost of nameplates completed during June ………………………………….. |
$4,300 |
Serenje applies overhead at a predetermined overhead rate of 60% of direct material cost. At the end of June, only one job was in Work in Process inventory. This job had been charged with $150 of direct material cost. What is the direct labor cost assigned to this job?
A) $100
B) $160
C) $225
D) $530
Garrison, Managerial Accounting, 12th Edition 85
Chapter 3 Systems Design: Job-Order Costing
51. Dukes Company used a predetermined overhead rate this year of $2 per direct labor hour, based on an estimate of 20,000 direct labor hours to be worked during the year. Actual costs and activity during the year were:
|
Actual manufacturing overhead cost incurred …………….. |
$38,000 |
|
Actual direct labor hours worked ……………………………… |
18,500 |
The under- or overapplied overhead for the year was:
A) $1,000 underapplied
B) $1,000 overapplied
C) $3,000 underapplied
D) $3,000 overapplied
52. Sargent Company applies overhead cost to jobs on the basis of 80 percent of direct labor cost. If Job 210 shows $10,000 of manufacturing overhead cost applied, how much was the direct labor cost on the job?
A) $12,500
B) $11,000
C) $8,000
D) $10,000
53. In the Vasquez Company, any over- or underapplied overhead is closed out to Cost of Goods Sold. Last year, the company incurred $27,000 in actual manufacturing overhead cost, and applied $29,000 of overhead cost to jobs. The beginning and ending balances of Finished Goods were equal, and the Company’s Cost of Goods Manufactured for the year totaled $71,000. Given this information, Cost of Goods Sold, after adjustment for any over- or underapplied overhead, for the year must have been:
A) $98,000
B) $73,000
C) $71,000
D) $69,000
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
