Sagon Corporation has provided data concerning the Corporation's

Manufacturing Overhead account for the month of September. Prior to the

closing of the overapplied or underapplied balance to Cost of Goods Sold, the
total of the debits to the Manufacturing Overhead account was $76,000 and the
total of the credits to the account was $66,000. Which of the following statements
is true?
Select one:

A.
Manufacturing overhead for the month was underapplied by $10,000.

B.
Manufacturing overhead applied to Work in Process for the month was $76,000.

C.
Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was
$76,000.

D.
Actual manufacturing overhead incurred during the month was $66,000.

Production costs of product X have been classified in various ways:

Prime costs: $50.80 per unit
Variable costs: $54.44 per unit
Fixed overheads: $15.20 per direct labour hour
Direct labour: 2.6 hours per unit at $12.00 per hour
Variable overheads: $1.40 per direct labour hour
Direct materials: $19.60 per unit

What is the total production cost per unit of product X? $Trả lời (round to 2 decimal
places)

Fisher Company uses a predetermined overhead rate based on direct labor cost to apply
manufacturing overhead to jobs. The following information about Fisher Company's Work in
Progress 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 Company's Work in Progress 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: $Trả lời

4Es Corporation uses a job-order costing system and applies overhead to jobs using a predetermined
overhead rate. During the year the company's Finished Goods inventory account was debited for
$384,000 and credited for $325,900. The ending balance in the Finished Goods inventory account was
$72,100. At the end of the year, manufacturing overhead was underapplied by $5,400.

The balance in the Finished Goods inventory account at the beginning of the year was: $Trả lời
(without comma add)
If the applied manufacturing overhead was $174,000, the actual manufacturing overhead cost for the year

was: Trả lời

4Es Company is a manufacturing firm that uses job-order costing. The company's inventory balances
were as follows at the beginning and end of the year:
Beginning balance Ending balance
Raw materials $21,000 $24,000
Work-in-process $40,000 $22,000
Finished goods $26,000 $41,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At
the beginning of the year, the company estimated that it would work 38,000 machine-hours and incur
$266,000 in manufacturing overhead cost. The following transactions were recorded for the year:

 Raw materials were purchased, $300,000.

 Raw materials were requisitioned for use in production, $297,000 $(281,000 direct and $16,000
indirect).
 The following employee costs were incurred: direct labor, $389,000; indirect labor, $62,000; and
administrative salaries, $176,000.
 Selling costs, $160,000.
 Factory utility costs, $19,000.
 Depreciation for the year was $143,000 of which $137,000 is related to factory operations and $6,000
is related to selling, general, and administrative activities.
 Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000
machine-hours.
 Sales for the year totaled $1,283,000.

Was the overhead underapplied or overapplied? By how much?

Answer: Trả lời overhead $Trả lời (without comma add)

S Inc. has provided the following data for the month of August. There were no
beginning inventories; consequently, the direct materials, direct labor, and
manufacturing overhead applied listed below are all for the current month.

Manufacturing overhead for the month was overapplied by $5,000.

The company allocates any underapplied or overapplied overhead among work
in process, finished goods, and cost of goods sold at the end of the month on the
basis of the overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied
overhead for August would include the following:

a.
credit to Finished Goods of $34,880

b.
debit to Finished Goods of $1,250

c.
credit to Finished Goods of $1,250

d.
debit to Finished Goods of $34,880

Walter Company uses a job-order costing system to account for product costs. The following information
pertains for a period:
Materials placed into production: £140,000
Indirect labour: 40,000
Direct labour (10,000 hours): 160,000
Depreciation of factory building: 60,000
Other factory overhead: 100,000
Increase in work-in-progress inventory: 30,000
Factory overhead rate is £18 per direct labour hour.
What is the total amount credited to Materials (Stores ledger account) for Walter for the period? £Trả lời

(without comma add)

What is the total amount debited to Finished Goods Inventory for the period? £Trả lời (without
comma add)
A journal entry debiting Work in Progress would normally NOT be accompanied by a credit to Trả lời

The following information relates to Mazar 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 Trả lời cost of

goods sold for $Trả lời . (Without comma add)

Fill in the blanks with the appropriate words below:

A cost object is anything for which a measurement of costs is desired.
A cost pool is a grouping of individual indirect cost items.
Assigning direct costs to a cost object is called cost tracing .
cost allocation is the process of distributing indirect costs to products.
A cost-application base links an indirect cost to a cost object.

For each company, indicate whether the company is most likely to use job-order
costing or process costing.
Answer 1
Elevator production and installation company
Ch? n...

Answer 2
Dairy farm
Ch? n...

Food caterer that supplies food for weddings and other special Answer 3
events Ch? n...
 Answer 4
Coal mining company
Ch? n...

Contract printer that produces posters, books, and pamphlets to Answer 5

order Ch? n...

Answer 6
Natural gas production company
Ch? n...

Seuell Inc. has provided the following data for the month of December. There
were no beginning inventories; consequently, the direct materials, direct labor,
and manufacturing overhead applied listed below are all for the current month.
Work In Finished Cost of Goods
Total
Process Goods Sold
Direct materials $4,080 $18,630 $66,240 $88,950
Direct labor 5,380 24,300 86,400 116,080
Manufacturing
3,780 13,230 45,990 63,000
overhead applied
Total 13,240 56,160 198,630 268,030
Manufacturing overhead for the month was overapplied by $12,000.
The Corporation allocates any underapplied or overapplied manufacturing
overhead among work in process, finished goods, and cost of goods sold at the
end of the month on the basis of the manufacturing overhead applied during the
month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied
manufacturing overhead for December would include the following:
Select one:

A.
All are incorrect

B.
credit to Finished Goods of $56,160

C.
debit to Finished Goods of $56,160

D.
credit to Finished Goods of $2,520

E.
debit to Finished Goods of $2,520
In the Vasquez Company, any over- or under-absorbed 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 under-
absorbed overhead, for the year must have been in dollars:

Answer:

4Es Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the
year, the total estimated manufacturing overhead was $221,100. At the end of the year, actual direct
labor-hours for the year were 14,400 hours, manufacturing overhead for the year was overapplied by
$21,500, and the actual manufacturing overhead was $216,100. The predetermined overhead rate

for the year must have been closest to $Trả lời (round to 2 decimal place)

Er Inc. has provided the following data for the month of March. The balance in
the Finished Goods inventory account at the beginning of the month was $43,000
and at the end of the month was $42,000. The cost of goods manufactured for
the month was $221,000. The actual manufacturing overhead cost incurred was
$45,000 and the manufacturing overhead cost applied to Work in Process was
$49,000. The adjusted cost of goods sold that would appear on the income
statement for March is:

a.
$221,000

b.
$226,000

c.
$220,000

d.
$222,000

e.
All are incorrect
Determined whether these statements below are TRUE or FALSE:
In a job-order cost system, salaries for factory supervisor should be charged Answer 1
directly to the Work in Process account. Ch? n...

In a job-order cost system, indirect labor is assigned to a job by using the labor Answer 2
time ticket as a source document. Ch? n...

Answer 3
Hospital would be most likely to use a job-order costing system.
Ch? n...

On the Schedule of Cost of Goods Manufactured, the final Cost of Goods

Answer 4
Manufactured figure represents the amount of cost of goods completed during
Ch? n...
the current year whether they were started before or during the current year.
The assignment of direct labour costs to individual jobs is based on the Answer 5
estimated time spent on each job multiplied by the wage rate. Ch? n...

The 4Es Ltd. estimates its expenses for the coming year as follows:
Sales commission: $150,000;
Direct labor costs: $110,000;
Salary for factory supervisor: $70,000;
Factory space rent: $32,000;
Direct materials cost: $30,000;
Product advertising costs: $22,000;
Indirect material costs in the factory: $10,000.
The company estimates 16,000 direct labor hours are employed during the year.
If manufacturing overheads are applied based on direct labor hours, the
estimated manufacturing overheads per direct labor hour is:

a.
15.28

b.
15.26

c.
7

d.
All are incorrect

e.
13.88

Braten Corporation uses direct labor-hours in its predetermined overhead rate. At

the beginning of the year, the estimated direct labor-hours were 14,100 hours. At
the end of the year, actual direct labor-hours for the year were 13,500 hours, the
actual manufacturing overhead for the year was $291,100, and manufacturing
overhead for the year was under-applied by $7,600. The estimated
manufacturing overhead at the beginning of the year used in the predetermined
overhead rate must have been:

a.
$296,000

b.
$298,816

c.
All are incorrect

d.
$286,100

e.
$283,500