Chapter 3 - Test Bank

Chapter 03 Job-Order Costing

True / False Questions
1. The use of predetermined overhead rates in a job-order cost system makes it possib e to estimate the tota cost of a given job as soon as production is comp eted. True !a se
". # job cost sheet is used to accumu ate costs charged to a job. True !a se
3. The fo o$ing journa entry $ou d be made to app y overhead cost to jobs in a job-order costing system%
True
!a se
&. 'nder a job-order cost system the (ork in )rocess account is debited $ith the cost of materia s purchased. True !a se
*. The process of assigning overhead cost to jobs is kno$n as overhead app ication. True !a se
+. The cost of a comp eted job in a job-order costing system typica y consists of the actua direct materia s cost of the job, the actua direct abor cost of the job, and the actua manufacturing overhead cost of the job. True !a se
03-01
-. # debit ba ance in the .anufacturing Overhead account at the end of the year means that manufacturing overhead is overapp ied. True !a se
/. )eriod costs are e0pensed as incurred, rather than going into the (ork in )rocess account. True !a se
1. #dvertising costs shou d be charged to the .anufacturing Overhead account. True !a se
10. (hen a job has been comp eted, the goods are transferred from the production department to the finished goods $arehouse and the journa entry $ou d inc ude a credit to (ork in )rocess. True !a se
11. 'nderapp ied or overapp ied manufacturing overhead represents the difference bet$een actua overhead costs and app ied overhead costs. True !a se
1". Top management sa aries shou d not go into the .anufacturing Overhead account. True !a se
13. 2f manufacturing overhead app ied e0ceeds the actua manufacturing overhead costs of the period, then manufacturing overhead is overapp ied. True !a se
Multiple Choice Questions
03-0"
1&. 2n computing its predetermined overhead rate, .arp e Company inadvertent y eft its indirect abor costs out of the computation. This oversight $i cause% #. .anufacturing Overhead to be overapp ied. 3. the Cost of 4oods .anufactured to be understated. C. the debits to the .anufacturing Overhead account to be understated. 5. the ending ba ance in (ork in )rocess to be overstated.
1*. (hich of the fo o$ing is the correct formu a to compute the predetermined overhead rate6 #. 7stimated tota units in the a ocation base divided by estimated tota manufacturing overhead costs. 3. 7stimated tota manufacturing overhead costs divided by estimated tota units in the a ocation base. C. #ctua tota manufacturing overhead costs divided by estimated tota units in the a ocation base. 5. 7stimated tota manufacturing overhead costs divided by actua tota units in the a ocation base.
1+. (hich of the fo o$ing $ou d probab y be the east appropriate a ocation base for a ocating overhead in a high y automated manufacturer of specia ty va ves6 #. .achine-hours 3. )o$er consumption C. 5irect abor-hours 5. .achine setups
1-. (hat document is used to determine the actua amount of direct abor to record on a job cost sheet6 #. Time ticket 3. )ayro register C. )roduction order 5. (ages payab e account
03-03
1/. # proper journa entry to c ose overapp ied manufacturing overhead to Cost of 4oods 8o d $ou d be%
#. Option # 3. Option 3 C. Option C 5. Option 5
11. 2n a job-order costing system, direct abor cost is ordinari y debited to% #. .anufacturing Overhead. 3. Cost of 4oods 8o d. C. !inished 4oods. 5. (ork in )rocess.
"0. 2n a job-order costing system, the use of direct materia s that have been previous y purchased is recorded as a debit to% #. 9a$ .ateria s inventory. 3. (ork in )rocess inventory. C. !inished 4oods inventory. 5. .anufacturing Overhead.
03-0&
"1. The journa entry to record the incurrence of indirect abor costs is%
"". (hich of the fo o$ing accounts is debited $hen direct abor is recorded6 #. (ork in process 3. 8a aries and $ages e0pense C. 8a aries and $ages payab e 5. .anufacturing overhead
"3. The ba ance in the (ork in )rocess account e:ua s% #. the ba ance in the !inished 4oods inventory account. 3. the ba ance in the Cost of 4oods 8o d account. C. the ba ances on the job cost sheets of uncomp eted jobs. 5. the ba ance in the .anufacturing Overhead account.
"&. 2n a job-order costing system, indirect materia s that have been previous y purchased and that are used in production are recorded as a debit to% #. (ork in )rocess inventory. 3. .anufacturing Overhead. C. !inished 4oods inventory. 5. 9a$ .ateria s inventory.
03-0*
"*. .artine; #erospace Company uses a job-order costing system. The direct materia s for Job <0&*311 $ere purchased in Ju y and put into production in #ugust. The job $as not comp eted by the end of #ugust. #t the end of #ugust, in $hat account $ou d the direct materia cost assigned to Job <0&*311 be ocated6 #. 9a$ materia s inventory 3. (ork in process inventory C. !inished goods inventory 5. Cost of goods manufactured
"+. (hich terms $i make the fo o$ing statement true6 (hen manufacturing overhead is overapp ied, the .anufacturing Overhead account has a ========== ba ance and app ied manufacturing overhead is greater than ========== manufacturing overhead. #. debit, actua 3. credit, actua C. debit, estimated 5. credit, estimated
"-. (hich of the fo o$ing is correct $ith respect to c osing out overapp ied manufacturing overhead to Cost of 4oods 8o d versus c osing it out to Cost of 4oods 8o d and !inished 4oods and (ork in )rocess inventories6 #. The ba ance in the (ork in )rocess account after a ocation $i be higher if the overapp ied manufacturing overhead is c osed out by a ocating it to a appropriate accounts. 3. The ba ance in the (ork in )rocess account after a ocation $i be the same under either method. C. >et operating income $i be higher if a of the overapp ied manufacturing overhead is c osed out to Cost of 4oods 8o d. 5. Cost of 4oods 8o d $i be o$er if the overapp ied manufacturing overhead is c osed out by a ocating it to the inventory accounts as $e as to Cost of 4oods 8o d.
"/. Overapp ied manufacturing overhead occurs $hen% #. app ied overhead e0ceeds actua overhead. 3. app ied overhead e0ceeds estimated overhead. C. actua overhead e0ceeds estimated overhead. 5. budgeted overhead e0ceeds actua overhead.
03-0+
"1. 5aguio Corporation uses direct abor-hours in its predetermined overhead rate. #t the beginning of the year, the tota estimated manufacturing overhead $as ?""&,*/0. #t the end of the year, actua direct abor-hours for the year $ere 1/,"00 hours, manufacturing overhead for the year $as underapp ied by ?1",100, and the actua manufacturing overhead $as ?"11,*/0. The predetermined overhead rate for the year must have been c osest to% #. ?11.&0 per machine-hour 3. ?1".3& per machine-hour C. ?1".0+ per machine-hour 5. ?10.*3 per machine-hour
30. (ert Corporation uses a predetermined overhead rate based on direct abor cost to app y manufacturing overhead to jobs. @ast year, the companyAs estimated manufacturing overhead $as ?1,"00,000 and its estimated eve of activity $as *0,000 direct abor-hours. The companyAs direct abor $age rate is ?1" per hour. #ctua manufacturing overhead amounted to ?1,"&0,000, $ith actua direct abor cost of ?+*0,000. !or the year, manufacturing overhead $as% #. overapp ied by ?+0,000 3. underapp ied by ?+0,000 C. overapp ied by ?&0,000 5. underapp ied by ?&&,000
31. Crinks Corporation uses direct abor-hours in its predetermined overhead rate. #t the beginning of the year, the estimated direct abor-hours $ere 11,"00 hours and the tota estimated manufacturing overhead $as ?"*1,/&0. #t the end of the year, actua direct aborhours for the year $ere 10,/00 hours and the actua manufacturing overhead for the year $as ?"*&,/&0. Overhead at the end of the year $as% #. ?&,"/0 overapp ied 3. ?1,"/0 overapp ied C. ?1,"/0 underapp ied 5. ?&,"/0 underapp ied
03-0-
3". #t the beginning of the year, manufacturing overhead for the year $as estimated to be ?"+-,*00. #t the end of the year, actua direct abor-hours for the year $ere "",100 hours, the actua manufacturing overhead for the year $as ?"+",*00, and manufacturing overhead for the year $as overapp ied by ?13,-*0. 2f the predetermined overhead rate is based on direct abor-hours, then the estimated direct abor-hours at the beginning of the year used in the predetermined overhead rate must have been% #. "",100 direct abor-hours 3. 11,100 direct abor-hours C. "1,000 direct abor-hours 5. "1,&00 direct abor-hours
33. 3race Corporation uses direct abor-hours in its predetermined overhead rate. #t the beginning of the year, the estimated direct abor-hours $ere "1,+00 hours. #t the end of the year, actua direct abor-hours for the year $ere "0,&00 hours, the actua manufacturing overhead for the year $as ?*0+,1"0, and manufacturing overhead for the year $as underapp ied by ?"3,&&0. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been% #. ?*01,1"0 3. ?*31,&&* C. ?&/3,&/0 5. ?*11,1"0
3&. Bista Corporation uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs. The company estimated manufacturing overhead at ?*10,000 for the year and direct abor-hours at 100,000 hours. #ctua manufacturing overhead costs incurred during the year tota ed ?*&0,000. #ctua direct abor-hours $ere 10*,000. (hat $as the overapp ied or underapp ied overhead for the year6 #. ?30,000 overapp ied 3. ?30,000 underapp ied C. ?&,*00 overapp ied 5. ?&,*00 underapp ied
03-0/
3*. .a co m Company uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs.
The cost records for 8eptember $i sho$% #. Overapp ied manufacturing overhead of ?1,*00 3. 'nderapp ied overhead of ?1,*00 C. Overapp ied manufacturing overhead of ?3,*00 5. 'nderapp ied overhead of ?3,*00
3+. The (ork in )rocess inventory account of a manufacturing firm sho$s a ba ance of ?3,000 at the end of an accounting period. The job cost sheets of t$o uncomp eted jobs sho$ charges of ?*00 and ?300 for direct materia s, and charges of ?&00 and ?+00 for direct abor. !rom this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct abor costs, of% #. /3C 3. 1"0C C. &0C 5. 300C
3-. (ashtena$ Corporation uses a job-order costing system. The fo o$ing data are for ast year%
(ashtena$ app ies overhead using a predetermined rate based on direct abor-hours. (hat predetermined overhead rate $as used ast year6 #. ?3.** per direct abor-hour 3. ?3."* per direct abor-hour C. ?3.0/ per direct abor-hour 5. ?3.3+ per direct abor-hour
03-01
3/. Capa bo Corporation bases its predetermined overhead rate on the estimated abor-hours for the upcoming year. #t the beginning of the most recent y comp eted year, the company estimated the abor-hours for the upcoming year at *",000 abor-hours. The estimated variab e manufacturing overhead $as ?".-/ per abor-hour and the estimated tota fi0ed manufacturing overhead $as ?1,11",3+0. The actua abor-hours for the year turned out to be *",+00 aborhours. The predetermined overhead rate for the recent y comp eted year $as c osest to% #. ?".-/ 3. ?"*.&* C. ?"*.-1 5. ?"".13
31. Compton Company uses a predetermined overhead rate in app ying overhead to production orders on a abor cost basis in 5epartment # and on a machine-hours basis in 5epartment 3. #t the beginning of the most recent y comp eted year, the company made the fo o$ing estimates%
(hat predetermined overhead rate $ou d be used in 5epartment # and 5epartment 3, respective y6 #. /3C and ?* 3. /3C and ?3 C. 1"0C and ?3 5. /3C and ?3
&0. Dayne Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. 5ata for the most recent y comp eted year appear be o$%
The predetermined overhead rate for the recent y comp eted year $as c osest to% #. ?-./1 3. ?30.1* C. ?"&.*" 5. ?3".&1
03-010
&1. The Co ins Company uses predetermined overhead rates to app y manufacturing overhead to jobs. The predetermined overhead rate is based on abor cost in 5ept. # and machine-hours in 5ept. 3. #t the beginning of the year, the company made the fo o$ing estimates%
(hat predetermined overhead rates $ou d be used in 5ept # and 5ept 3, respective y6 #. -1C and ?&.00 3. 1&0C and ?&.00 C. 1&0C and ?&./0 5. -1C and ?&./0
&". 8imoneau0 Corporation bases its predetermined overhead rate on the estimated machinehours for the upcoming year. #t the beginning of the most recent y comp eted year, the company estimated the machine-hours for the upcoming year at "",000 machine-hours. The estimated variab e manufacturing overhead $as ?/.+* per machine-hour and the estimated tota fi0ed manufacturing overhead $as ?+01,&00. The predetermined overhead rate for the recent y comp eted year $as c osest to% #. ?3+.3* per machine-hour 3. ?"-.-0 per machine-hour C. ?33.3" per machine-hour 5. ?/.+* per machine-hour
03-011
&3. Ee sh Company uses a predetermined overhead rate based on machine-hours to app y manufacturing overhead to jobs. The company has provided the fo o$ing estimated costs for ne0t year%
Ee sh estimates that *,000 direct abor-hours and 10,000 machine-hours $i be $orked during the year. The predetermined overhead rate per hour $i be% #. ?+./0 3. ?+.&0 C. ?3.&0 5. ?/."0
&&. Eaiser Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. 5ata for the upcoming year appear be o$%
The predetermined overhead rate for the recent y comp eted year $as c osest to% #. ?+.+/ 3. ?"*.0" C. ?"*.*1 5. ?1/.3&
&*. The fo o$ing data have been recorded for recent y comp eted Job +-& on its job cost sheet. 5irect materia s cost $as ?",031. # tota of 3" direct abor-hours and 1-* machinehours $ere $orked on the job. The direct abor $age rate is ?1& per abor-hour. The company app ies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is ?1* per machine-hour. The tota cost for the job on its job cost sheet $ou d be% #. ?",1+3. ?",&/C. ?",0+/ 5. ?*,11"
03-01"
&+. Job -31 $as recent y comp eted. The fo o$ing data have been recorded on its job cost sheet%
The company app ies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is ?1& per machine-hour. The tota cost that $ou d be recorded on the job cost sheet for Job -31 $ou d be% #. ?3,"// 3. ?*,01& C. ?&,"*& 5. ?",&1/
&-. The operations of the Eerry Company resu ted in underapp ied overhead of ?*,000. The entry to c ose out this ba ance to Cost of 4oods 8o d and the effect of the underapp ied overhead on Cost of 4oods 8o d $ou d be%
03-013
&/. 9eiche derfer Corporation has provided data concerning the companyAs .anufacturing Overhead account for the month of #ugust. )rior to the c osing of the overapp ied or underapp ied ba ance to Cost of 4oods 8o d, the tota of the debits to the .anufacturing Overhead account $as ?*0,000 and the tota of the credits to the account $as ?-",000. (hich of the fo o$ing statements is true6 #. .anufacturing overhead transferred from !inished 4oods to Cost of 4oods 8o d during the month $as ?-",000. 3. .anufacturing overhead app ied to (ork in )rocess for the month $as ?*0,000. C. #ctua manufacturing overhead for the month $as ?*0,000. 5. .anufacturing overhead for the month $as underapp ied by ?"",000.
&1. Du ts Corporation has provided data concerning the companyAs .anufacturing Overhead account for the month of >ovember. )rior to the c osing of the overapp ied or underapp ied ba ance to Cost of 4oods 8o d, the tota of the debits to the .anufacturing Overhead account $as ?-*,000 and the tota of the credits to the account $as ?*-,000. (hich of the fo o$ing statements is true6 #. .anufacturing overhead transferred from !inished 4oods to Cost of 4oods 8o d during the month $as ?-*,000. 3. #ctua manufacturing overhead incurred during the month $as ?*-,000. C. .anufacturing overhead app ied to (ork in )rocess for the month $as ?-*,000. 5. .anufacturing overhead for the month $as underapp ied by ?1/,000.
*0. Fandagriff Corporation has provided data concerning the companyAs .anufacturing Overhead account for the month of June. )rior to the c osing of the overapp ied or underapp ied ba ance to Cost of 4oods 8o d, the tota of the debits to the .anufacturing Overhead account $as ?--,000 and the tota of the credits to the account $as ?+&,000. (hich of the fo o$ing statements is true6 #. .anufacturing overhead transferred from !inished 4oods to Cost of 4oods 8o d during the month $as ?--,000. 3. .anufacturing overhead app ied to (ork in )rocess for the month $as ?+&,000. C. .anufacturing overhead for the month $as overapp ied by ?13,000. 5. #ctua manufacturing overhead incurred during the month $as ?+&,000.
03-01&
*1. 5uring October, Crusan Corporation incurred ?+",000 of direct abor costs and ?&,000 of indirect abor costs. The journa entry to record the accrua of these $ages $ou d inc ude a% #. debit to (ork in )rocess of ?++,000 3. credit to (ork in )rocess of ?++,000 C. debit to (ork in )rocess of ?+",000 5. credit to (ork in )rocess of ?+",000
*". 5uring 5ecember at 2ngrim Corporation, ?-&,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?+,000. The journa entry to record the re:uisition from the storeroom $ou d inc ude a% #. debit to 9a$ .ateria s of ?-&,000 3. debit to (ork in )rocess of ?+/,000 C. credit to .anufacturing Overhead of ?+,000 5. debit to (ork in )rocess of ?-&,000
*3. 8tick es Corporation incurred ?-1,000 of actua .anufacturing Overhead costs during #ugust. 5uring the same period, the .anufacturing Overhead app ied to (ork in )rocess $as ?-*,000. The journa entry to record the incurrence of the actua .anufacturing Overhead costs $ou d inc ude a% #. debit to .anufacturing Overhead of ?-1,000 3. credit to .anufacturing Overhead of ?-1,000 C. credit to (ork in )rocess of ?-*,000 5. debit to (ork in )rocess of ?-*,000
*&. Fa es Corporation had ?"",000 of ra$ materia s on hand on !ebruary 1. 5uring the month, the company purchased an additiona ?-*,000 of ra$ materia s. The journa entry to record the purchase of ra$ materia s $ou d inc ude a% #. credit to 9a$ .ateria s of ?1-,000 3. debit to 9a$ .ateria s of ?1-,000 C. credit to 9a$ .ateria s of ?-*,000 5. debit to 9a$ .ateria s of ?-*,000
03-01*
**. (edd Corporation had ?3*,000 of ra$ materia s on hand on .ay 1. 5uring the month, the company purchased an additiona ?+/,000 of ra$ materia s. 5uring .ay, ?1",000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?*,000. The debits to the (ork in )rocess account as a conse:uence of the ra$ materia s transactions in .ay tota % #. ?1",000 3. ?0 C. ?+/,000 5. ?/-,000
*+. 5uring !ebruary, 5egan 2nc. transferred ?+0,000 from (ork in )rocess to !inished 4oods and recorded a Cost of 4oods 8o d of ?+*,000. The journa entries to record these transactions $ou d inc ude a% #. debit to !inished 4oods of ?+*,000 3. credit to Cost of 4oods 8o d of ?+*,000 C. credit to (ork in )rocess of ?+0,000 5. credit to !inished 4oods of ?+0,000
*-. Eirson Corporation incurred ?/1,000 of actua .anufacturing Overhead costs during 5ecember. 5uring the same period, the .anufacturing Overhead app ied to (ork in )rocess $as ?1",000. The journa entry to record the app ication of .anufacturing Overhead to (ork in )rocess $ou d inc ude a% #. debit to .anufacturing Overhead of ?1",000 3. debit to (ork in )rocess of ?/1,000 C. credit to .anufacturing Overhead of ?1",000 5. credit to (ork in )rocess of ?/1,000
*/. #t the beginning of #ugust, Dogancamp Corporation had ?"+,000 of ra$ materia s on hand. 5uring the month, the company purchased an additiona ?-3,000 of ra$ materia s. 5uring #ugust, ?--,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. The credits to the 9a$ .ateria s account for the month of #ugust tota % #. ?-3,000 3. ?--,000 C. ?11,000 5. ?"+,000
03-01+
*1. 5uring Ju y at Tiner Corporation, ?-&,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?-,000. The journa entry to record this re:uisition $ou d inc ude a debit to .anufacturing Overhead of% #. ?0 3. ?-&,000 C. ?-,000 5. ?+-,000
+0. On !ebruary 1, Cadde Corporation had ?"/,000 of ra$ materia s on hand. 5uring the month, the company purchased an additiona ?-0,000 of ra$ materia s. 5uring !ebruary, ?/1,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. The debits to the 9a$ .ateria s account for the month of !ebruary tota % #. ?1/,000 3. ?-0,000 C. ?"/,000 5. ?/1,000
+1. 2n .ay, Dervey 2nc. incurred ?+0,000 of direct abor costs and ?3,000 of indirect abor costs. The journa entry to record the accrua of these $ages $ou d inc ude a% #. credit to .anufacturing Overhead of ?3,000 3. debit to (ork in )rocess of ?+3,000 C. credit to (ork in )rocess of ?+3,000 5. debit to .anufacturing Overhead of ?3,000
03-01-
+". The 5ona dson Company uses a job-order costing system. The fo o$ing data $ere recorded for Ju y%
Overhead is app ied to jobs at the rate of /0C of direct materia s cost. Jobs &-*, &--, and &-/ $ere comp eted during Ju y and transferred to finished goods. Jobs &-* and &-/ have been de ivered to the customer. 5ona dsonAs (ork in )rocess inventory ba ance on Ju y 31 $as% #. ?-,"/0 3. ?",+00 C. ?3,1+0 5. ?3,3"0
+3. )innini Co. uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs. @ast year, )innini Company incurred ?""*,000 in actua manufacturing overhead cost. The .anufacturing Overhead account sho$ed that overhead $as overapp ied ?1&,*00 for the year. 2f the predetermined overhead rate $as ?*.00 per direct abor-hour, ho$ many hours did the company $ork during the year6 #. &*,000 hours 3. &-,100 hours C. &",100 hours 5. &&,000 hours
+&. 5o$an Company uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs. @ast year 5o$an Company incurred ?1*+,+00 in actua manufacturing overhead cost. The .anufacturing Overhead account sho$ed that manufacturing overhead $as underapp ied by ?1",+00 for the year. 2f the predetermined overhead rate is ?+.00 per direct abor-hour, ho$ many hours did the company $ork during the year6 #. "+,000 hours 3. "&,000 hours C. "/,"00 hours 5. "*,000 hours
03-01/
+*. Ee son Company app ies overhead to jobs on the basis of +0C of direct abor cost. 2f Job "01 sho$s ?"-,000 of manufacturing overhead app ied, the direct abor cost on the job $as% #. ?1+,"00 3. ?"-,000 C. ?3-,/00 5. ?&*,000
++. The fo o$ing accounts are from ast yearAs books at 8harp .anufacturing%
8harp uses job-order costing and app ies manufacturing overhead to jobs based on direct abor costs. (hat is the amount of cost of goods manufactured for the year6 #. ?"*",000 3. ?""-,000 C. ?"30,000 5. ?"**,000
03-011
+-. Jurper Corporation used ?1*0,000 of direct materia s during #pri . #t the end of #pri , JurperAs direct materia s inventory $as ?"*,000 more than it $as at the beginning of the month. 5irect materia s purchases during the #pri amounted to% #. ?0 3. ?1"*,000 C. ?1*0,000 5. ?1-*,000
+/. 3otton 2nc. has provided the fo o$ing data for the month of .arch. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?-,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The cost of goods so d for .arch after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?1+3,&10 3. ?1--,&10 C. ?1+*,030 5. ?1-*,1*0
03-0"0
+1. 5esrevisseau 2nc., a manufacturing company, has provided the fo o$ing data for the month of #ugust. The ba ance in the (ork in )rocess inventory account $as ?10,000 at the beginning of the month and ?"",000 at the end of the month. 5uring the month, the company incurred direct materia s cost of ?+3,000 and direct abor cost of ?31,000. The actua manufacturing overhead cost incurred $as ?&0,000. The manufacturing overhead cost app ied to (ork in )rocess $as ?&3,000. The cost of goods manufactured for #ugust $as% #. ?133,000 3. ?1&",000 C. ?1&*,000 5. ?130,000
-0. 'nder @amprey CompanyAs job-order costing system, manufacturing overhead is app ied to (ork in )rocess inventory using a predetermined overhead rate. 5uring January, @ampreyAs transactions inc uded the fo o$ing%
@amprey Company had no beginning or ending inventories. (hat $as the cost of goods manufactured for January6 #. ?30",000 3. ?310,000 C. ?3"",000 5. ?330,000
-1. 5e hoyo Corporation, a manufacturing company, has provided data concerning its operations for 8eptember. The beginning ba ance in the ra$ materia s account $as ?3-,000 and the ending ba ance $as ?"1,000. 9a$ materia s purchased during the month tota ed ?*-,000. .anufacturing overhead cost incurred during the month $as ?10",000, of $hich ?",000 consisted of ra$ materia s c assified as indirect materia s. The direct materia s cost for 8eptember $as% #. ?+3,000 3. ?*-,000 C. ?+*,000 5. ?&1,000
03-0"1
-". 4est 2nc. has provided the fo o$ing data for the month of >ovember. The ba ance in the !inished 4oods inventory account at the beginning of the month $as ?&1,000 and at the end of the month $as ?&*,000. The cost of goods manufactured for the month $as ?""+,000. The actua manufacturing overhead cost incurred $as ?-&,000 and the manufacturing overhead cost app ied to (ork in )rocess $as ?-0,000. The adjusted cost of goods so d that $ou d appear on the income statement for >ovember is% #. ?""+,000 3. ?"30,000 C. ?""",000 5. ?"3&,000
-3. 5yde 2nc. has provided the fo o$ing data for the month of 5ecember. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?-,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The finished goods inventory at the end of 5ecember after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?"-,&1/ 3. ?30,""0 C. ?30,"/" 5. ?"-,*+0
03-0""
-&. @yster 2nc. has provided the fo o$ing data for the month of #ugust. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?1,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The $ork in process inventory at the end of #ugust after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?*,+*0 3. ?*,+&* C. ?*,*-0 5. ?*,*-*
03-0"3
-*. .inturn 2nc. has provided the fo o$ing data for the month of 8eptember. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?",000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for 8eptember $ou d inc ude the fo o$ing% #. debit to (ork in )rocess of ?1"0 3. credit to (ork in )rocess of ?1*,/00 C. debit to (ork in )rocess of ?1*,/00 5. credit to (ork in )rocess of ?1"0
03-0"&
-+. 4raeser 2nc. has provided the fo o$ing data for the month of .ay. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?&,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for .ay $ou d inc ude the fo o$ing% #. credit to Cost of 4oods 8o d of ?100,110 3. credit to Cost of 4oods 8o d of ?",*"0 C. debit to Cost of 4oods 8o d of ?",*"0 5. debit to Cost of 4oods 8o d of ?100,110
--. The actua manufacturing overhead incurred at Dogans Corporation during #pri $as ?*1,000, $hi e the manufacturing overhead app ied to (ork in )rocess $as ?-&,000. The companyAs Cost of 4oods 8o d $as ?"/1,000 prior to c osing out its .anufacturing Overhead account. The company c oses out its .anufacturing Overhead account to Cost of 4oods 8o d. (hich of the fo o$ing statements is true6 #. .anufacturing overhead $as overapp ied by ?1*,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?"-&,000 3. .anufacturing overhead $as underapp ied by ?1*,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?"-&,000 C. .anufacturing overhead $as overapp ied by ?1*,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?30&,000 5. .anufacturing overhead $as underapp ied by ?1*,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?30&,000
03-0"*
-/. 8harp CompanyAs records sho$ that overhead $as overapp ied by ?10,000 ast year. This overapp ied manufacturing overhead $as c osed out to the Cost of 4oods 8o d account at the end of the year. 2n trying to determine $hy overhead $as overapp ied by such a arge amount, the company has discovered that ?+,000 of depreciation on factory e:uipment $as charged to administrative e0pense in error. 4iven the above information, $hich of the fo o$ing statements is true6 #. .anufacturing overhead $as actua y overapp ied by ?1+,000 for the year. 3. The companyAs net income is understated by ?+,000 for the year. C. 'nder the circumstances posed above, the error in recording depreciation $ou d have no effect on net operating income for the year. 5. The ?+,000 in depreciation shou d have been charged to (ork in )rocess rather than to administrative e0pense.
-1. Cary 2nc. has provided the fo o$ing data for the month of .arch. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?10,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for .arch $ou d inc ude the fo o$ing% #. credit to !inished 4oods of ?100 3. debit to !inished 4oods of ?"1,"00 C. credit to !inished 4oods of ?"1,"00 5. debit to !inished 4oods of ?100
03-0"+
/0. @iet; Corporation has provided the fo o$ing data concerning manufacturing overhead for January%
The companyAs Cost of 4oods 8o d $as ?3+1,000 prior to c osing out its .anufacturing Overhead account. The company c oses out its .anufacturing Overhead account to Cost of 4oods 8o d. (hich of the fo o$ing statements is true6 #. .anufacturing overhead $as underapp ied by ?"3,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?31",000 3. .anufacturing overhead $as underapp ied by ?"3,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?3&+,000 C. .anufacturing overhead $as overapp ied by ?"3,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?3&+,000 5. .anufacturing overhead $as overapp ied by ?"3,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?31",000
3akker Corporation app ies manufacturing overhead on the basis of direct abor-hours. #t the beginning of the most recent year, the company based its predetermined overhead rate on tota estimated overhead of ?--,"*0 and ",*00 estimated direct abor-hours. #ctua manufacturing overhead for the year amounted to ?-1,000 and actua direct abor-hours $ere ",&00.
/1. The predetermined overhead rate for the year $as c osest to% #. ?"1.++ 3. ?3".1" C. ?31.+0 5. ?30.10
/". The app ied manufacturing overhead for the year $as c osest to% #. ?-&,1+0 3. ?-1,1/& C. ?-*,/&0 5. ?-1,00/
03-0"-
/3. The overhead for the year $as% #. ?3,010 overapp ied 3. ?&,/&0 underapp ied C. ?&,/&0 overapp ied 5. ?3,010 underapp ied
#cite i Corporation, $hich app ies manufacturing overhead on the basis of machine-hours, has provided the fo o$ing data for its most recent year of operations.
The estimates of the manufacturing overhead and of machine-hours $ere made at the beginning of the year for the purpose of computing the companyAs predetermined overhead rate for the year.
/&. The predetermined overhead rate is c osest to% #. ?&".30 3. ?&1./" C. ?&".1" 5. ?&".00
/*. The app ied manufacturing overhead for the year is c osest to% #. ?3*-,1-1 3. ?3+0,*&C. ?3*1,*"0 5. ?3+",0//
/+. The overhead for the year $as% #. ?1,*"0 underapp ied 3. ?",*"0 overapp ied C. ?1,*"0 overapp ied 5. ?",*"0 underapp ied
03-0"/
Carter Corporation app ies manufacturing overhead on the basis of machine-hours. #t the beginning of the most recent year, the company based its predetermined overhead rate on tota estimated overhead of ?13*,/*0. #ctua manufacturing overhead for the year amounted to ?1&*,000 and actua machine-hours $ere *,++0. The companyAs predetermined overhead rate for the year $as ?"&.-0 per machine-hour.
/-. The predetermined overhead rate $as based on ho$ many estimated machine-hours6 #. *,/-0 3. *,*00 C. +,0/1 5. *,++0
//. The app ied manufacturing overhead for the year $as c osest to% #. ?13*,/*0 3. ?1&1,"1/ C. ?1&3,/+1 5. ?131,/0"
/1. The overhead for the year $as% #. ?*,11/ overapp ied 3. ?3,1*" underapp ied C. ?3,1*" overapp ied 5. ?*,11/ underapp ied
8nappy Company has a job-order costing system and uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs. .anufacturing overhead cost and direct abor hours $ere estimated at ?100,000 and &0,000 hours, respective y, for the year. 2n Ju y, Job <33& $as comp eted at a cost of ?*,000 in direct materia s and ?",&00 in direct abor. The abor rate is ?+ per hour. 3y the end of the year, 8nappy had $orked a tota of &*,000 direct abor-hours and had incurred ?110,"*0 actua manufacturing overhead cost.
03-0"1
10. 2f Job <33& contained "00 units, the unit product cost on the comp eted job cost sheet $ou d be% #. ?3-.00 3. ?&".00 C. ?&1.10 5. ?31.*0
11. 8nappyAs manufacturing overhead for the year $as% #. ?10,"*0 underapp ied 3. ?1",*00 overapp ied C. ?1",*00 underapp ied 5. ?","*0 overapp ied
@und Company app ies manufacturing overhead to jobs using a predetermined overhead rate of -*C of direct abor cost. #ny underapp ied or overapp ied manufacturing overhead cost is c osed out to Cost of 4oods 8o d at the end of the month. 5uring .arch, the fo o$ing transactions $ere recorded by the company%
1". The amount of direct materia s cost in the .arch 31 (ork in )rocess inventory account $as% #. ?*,"*0 3. ?3,*00 C. ?1,000 5. ?/,-*0
03-030
13. The Cost of 4oods .anufactured for .arch $as% #. ?++,*00 3. ?+1,*00 C. ?*1,*00 5. ?+3,000
1&. The entry to dispose of the underapp ied or overapp ied manufacturing overhead cost for the month $ou d inc ude% #. a credit of ?",000 to Cost of 4oods 8o d. 3. a debit of ?*,000 to the Cost of 4oods 8o d. C. a debit of ?*,000 to the .anufacturing Overhead account. 5. a credit of ?",000 to the .anufacturing Overhead account.
1*. The ba ance on .arch 1 in the 9a$ .ateria s inventory account $as% #. ?/,*00 3. ?+,*00 C. ?-,*00 5. ?1,*00
On #pri 1, 3ogdon Corporation had ?30,000 of ra$ materia s on hand. 5uring the month, the company purchased an additiona ?+3,000 of ra$ materia s. 5uring #pri , ?-+,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?",000.
1+. The journa entry to record the purchase of ra$ materia s $ou d inc ude a% #. debit to 9a$ .ateria s of ?+3,000 3. credit to 9a$ .ateria s of ?+3,000 C. credit to 9a$ .ateria s of ?13,000 5. debit to 9a$ .ateria s of ?13,000
03-031
1-. The journa entry to record the re:uisition from the storeroom $ou d inc ude a% #. debit to 9a$ .ateria s of ?-+,000 3. debit to (ork in )rocess of ?-+,000 C. credit to .anufacturing Overhead of ?",000 5. debit to (ork in )rocess of ?-&,000
On #pri 1, 8te ter Corporation had ?3&,000 of ra$ materia s on hand. 5uring the month, the company purchased an additiona ?+0,000 of ra$ materia s. 5uring #pri , ?-0,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?-,000. )repare journa entries to record these events. 'se these journa entries to ans$er the fo o$ing :uestions%
1/. The debits to the 9a$ .ateria s account for the month of #pri tota % #. ?1&,000 3. ?-0,000 C. ?+0,000 5. ?3&,000
11. The credits to the 9a$ .ateria s account for the month of #pri tota % #. ?1&,000 3. ?3&,000 C. ?-0,000 5. ?+0,000
100. The debits to the (ork in )rocess account as a conse:uence of the ra$ materia s transactions in #pri tota % #. ?+0,000 3. ?0 C. ?-0,000 5. ?+3,000
03-03"
101. The credits to the (ork in )rocess account as a conse:uence of the ra$ materia s transactions in #pri tota % #. ?-0,000 3. ?+3,000 C. ?0 5. ?+0,000
10". The debits to the .anufacturing Overhead account as a conse:uence of the ra$ materia s transactions in #pri tota % #. ?-,000 3. ?+3,000 C. ?0 5. ?-0,000
103. The credits to the .anufacturing Overhead account as a conse:uence of the ra$ materia s transactions in #pri tota % #. ?0 3. ?-0,000 C. ?+3,000 5. ?-,000
5uring 8eptember, 8tut;man Corporation incurred ?/+,000 of actua .anufacturing Overhead costs. 5uring the same period, the .anufacturing Overhead app ied to (ork in )rocess $as ?/1,000.
10&. The journa entry to record the incurrence of the actua .anufacturing Overhead costs $ou d inc ude a% #. credit to .anufacturing Overhead of ?/+,000 3. debit to .anufacturing Overhead of ?/+,000 C. credit to (ork in )rocess of ?/1,000 5. debit to (ork in )rocess of ?/1,000
03-033
10*. The journa entry to record the app ication of .anufacturing Overhead to (ork in )rocess $ou d inc ude a% #. credit to .anufacturing Overhead of ?/1,000 3. credit to (ork in )rocess of ?/+,000 C. debit to .anufacturing Overhead of ?/1,000 5. debit to (ork in )rocess of ?/+,000
5aane Company had on y one job in process on .ay 1. The job had been charged $ith ?1,000 of direct materia s, ?3,30" of direct abor, and ?*,3/" of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of ?"0.-0 per direct abor-hour. 5uring .ay, the fo o$ing activity $as recorded%
(ork in process inventory on .ay 30 contains ?",1"1 of direct abor cost. 9a$ materia s consist so e y of items that are c assified as direct materia s.
10+. The amount of direct materia s cost in the .ay 30 $ork in process inventory account $as% #. ?*,+/0 3. ?11,100 C. ?/,&00 5. ?11,*00
10-. The cost of goods manufactured for .ay $as% #. ?-/,*00 3. ?-/,100 C. ?--,1*0 5. ?-&,/""
03-03&
10/. The entry to dispose of the underapp ied or overapp ied manufacturing overhead cost for the month $ou d inc ude a% #. debit of ?1,3*0 to .anufacturing Overhead. 3. credit of ?&,-+1 to .anufacturing Overhead. C. credit of ?1,3*0 to .anufacturing Overhead. 5. debit of ?&,-+1 to .anufacturing Overhead.
03-03*
The fo o$ing partia y comp eted T-accounts summari;e the transactions of 3e son Company for ast year%
03-03+
#t the end of the year, the company c oses out the ba ance in the .anufacturing Overhead
03-03-
account to Cost of 4oods 8o d.
03-03/
101. The indirect abor cost is% #. ?+,000 3. ?13,000 C. ?1+,000 5. ?31,000
110. The cost of goods so d Hafter adjustment for underapp ied or overapp ied manufacturing overheadI is% #. ?+1,000 3. ?+",000 C. ?+3,000 5. ?+&,000
111. The manufacturing overhead app ied is% #. ?"/,000 3. ?"1,000 C. ?30,000 5. ?3/,000
11". The cost of direct materia s used in production is% #. ?1",000 3. ?13,000 C. ?1+,000 5. ?"0,000
03-031
7ntin Corporation reported the fo o$ing data for the month of January%
113. The direct materia s cost for January is% #. ?*1,000 3. ?*+,000 C. ?-1,000 5. ?+*,000
11&. The cost of goods manufactured for January is% #. ?"0",000 3. ?"1&,000 C. ?"1-,000 5. ?111,000
11*. The adjusted cost of goods so d that appears on the income statement for January is% #. ?11-,000 3. ?"00,000 C. ?"01,000 5. ?111,000
03-0&0
Fan$agenen 2nc. has provided the fo o$ing data for the month of #pri %
11+. The cost of goods manufactured for #pri is% #. ?11/,000 3. ?"01,000 C. ?11-,000 5. ?"0",000
11-. The adjusted cost of goods so d that appears on the income statement for #pri is% #. ?11-,000 3. ?11*,000 C. ?"00,000 5. ?111,000
@eija .anufacturing Company uses a job-order costing system and started the month of .arch $ith one job in process HJob <3*1I. This job had ?*00 of cost assigned to it at this time. 5uring .arch, @eija assigned production costs as fo o$s to the jobs $orked on during the month%
5uring .arch, @eija comp eted and so d Job <3*1. Job <3+0 $as a so comp eted but $as not so d by month end. Job <3+1 $as not comp eted by the end of .arch.
03-0&1
11/. (hat is @eijaAs cost of goods manufactured for .arch6 #. ?+,*00 3. ?1&,100 C. ?1&,+00 5. ?1+,*00
111. (hat is @eijaAs $ork in process inventory ba ance at the end of .arch6 #. ?1,100 3. ?",&00 C. ?",100 5. ?10,000
7chenko Corporation uses a job-order costing system and app ies overhead to jobs using a predetermined overhead rate. 5uring the year the companyAs !inished 4oods inventory account $as debited for ?3/0,000 and credited for ?33*,*00. The ending ba ance in the !inished 4oods inventory account $as ?+",300. #t the end of the year, manufacturing overhead $as overapp ied by ?",100.
1"0. The ba ance in the !inished 4oods inventory account at the beginning of the year $as% #. ?",100 3. ?+",300 C. ?&&,*00 5. ?1-,/00
1"1. 2f the app ied manufacturing overhead $as ?-0,&00, the actua manufacturing overhead cost for the year $as% #. ?-3,300 3. ?+-,*00 C. ?1"1,/00 5. ?/*,300
03-0&"
The fo o$ing partia y comp eted T-accounts summari;e transactions for !abat; Company during the year%
1"". The Cost of 4oods .anufactured $as% #. ?"3,/00 3. ?*,&00 C. ?"",+00 5. ?&+,&00
03-0&3
1"3. The direct abor cost $as% #. ?/,-00 3. ?1",000 C. ?11,-00 5. ?1&,"00
1"&. The direct materia s cost $as% #. ?3,300 3. ?/,-00 C. ?+,300 5. ?-,300
1"*. The manufacturing overhead app ied $as% #. ?","00 3. ?3,000 C. ?*,/00 5. ?13,100
1"+. The manufacturing overhead $as% #. ?","00 underapp ied 3. ?","00 overapp ied C. ?&00 overapp ied 5. ?&00 underapp ied
03-0&&
8tanis;e$ski 2nc. has provided the fo o$ing data for the month of .arch. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?1,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts.
1"-. The cost of goods so d for .arch after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?""1,1&0 3. ?"31,*+0 C. ?"31,-*0 5. ?""1,-*0
1"/. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for .arch $ou d inc ude the fo o$ing% #. credit to !inished 4oods of ?3/,-/0 3. debit to !inished 4oods of ?3/,-/0 C. credit to !inished 4oods of ?1&0 5. debit to !inished 4oods of ?1&0
03-0&*
@enci 2nc. has provided the fo o$ing data for the month of .ay. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
1"1. The $ork in process inventory at the end of .ay after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?1",-10 3. ?1",-3" C. ?1",1"/ 5. ?1",1*0
130. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for .ay $ou d inc ude the fo o$ing% #. debit to Cost of 4oods 8o d of ?3&0,*/0 3. credit to Cost of 4oods 8o d of ?",*/0 C. credit to Cost of 4oods 8o d of ?3&0,*/0 5. debit to Cost of 4oods 8o d of ?",*/0
03-0&+
Joens 2nc. has provided the fo o$ing data for the month of Ju y. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?",000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts.
131. The cost of goods so d for Ju y after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?*1,3"0 3. ?&-,3"0 C. ?*0,"/0 5. ?&/,3+0
13". The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for Ju y $ou d inc ude the fo o$ing% #. debit to (ork in )rocess of ?3+0 3. credit to (ork in )rocess of ?3+0 C. credit to (ork in )rocess of ?1","*0 5. debit to (ork in )rocess of ?1","*0
03-0&-
.c(hite 2nc. has provided the fo o$ing data for the month of October. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?+,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts.
133. The finished goods inventory at the end of October after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?+0,/"0 3. ?*/,++0 C. ?*/,+&/ 5. ?+0,/3"
13&. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for October $ou d inc ude the fo o$ing% #. debit to Cost of 4oods 8o d of ?"+",1"0 3. credit to Cost of 4oods 8o d of ?"+",1"0 C. debit to Cost of 4oods 8o d of ?&,/00 5. credit to Cost of 4oods 8o d of ?&,/00
03-0&/
5enherder 2nc. has provided the fo o$ing data for the month of >ovember. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?*,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts.
13*. The finished goods inventory at the end of >ovember after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?*0,/&0 3. ?*0,/&/ C. ?*",+3" 5. ?*",+&0
13+. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for >ovember $ou d inc ude the fo o$ing% #. credit to (ork in )rocess of ?"*0 3. debit to (ork in )rocess of ?11,"00 C. credit to (ork in )rocess of ?11,"00 5. debit to (ork in )rocess of ?"*0
03-0&1
4ressett 2nc. has provided the fo o$ing data for the month of #pri . There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?+,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts.
13-. The $ork in process inventory at the end of #pri after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?&,0*0 3. ?&,0/1 C. ?&,"*1 5. ?&,"10
13/. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for #pri $ou d inc ude the fo o$ing% #. debit to !inished 4oods of ?&&,"/0 3. credit to !inished 4oods of ?1+0 C. debit to !inished 4oods of ?1+0 5. credit to !inished 4oods of ?&&,"/0
Essay Questions
03-0*0
131. # am Company is a manufacturing firm that uses job-order costing. #t the beginning of the year, the companyAs inventory ba ances $ere as fo o$s%
The company app ies overhead to jobs using a predetermined overhead rate based on machine-hours. #t the beginning of the year, the company estimated that it $ou d $ork &*,000 machine-hours and incur ?1/0,000 in manufacturing overhead cost. The fo o$ing transactions $ere recorded for the year% a. 9a$ materia s $ere purchased, ?&1+,000. b. 9a$ materia s $ere re:uisitioned for use in production, ?&"0,000 H?3/0,000 direct and ?&0,000 indirectI. c. The fo o$ing emp oyee costs $ere incurred% direct abor, ?&1&,000G indirect abor, ?+0,000G and administrative sa aries, ?"1",000. d. 8e ing costs, ?1&1,000. e. !actory uti ity costs, ?"0,000. f. 5epreciation for the year $as ?/1,000 of $hich ?-3,000 is re ated to factory operations and ?/,000 is re ated to se ing, genera , and administrative activities. g. .anufacturing overhead $as app ied to jobs. The actua eve of activity for the year $as &/,000 machine-hours. h. The cost of goods manufactured for the year $as ?1,00&,000. i. 8a es for the year tota ed ?1,&1+,000 and the costs on the job cost sheets of the goods that $ere so d tota ed ?1/1,000. j. The ba ance in the .anufacturing Overhead account $as c osed out to Cost of 4oods 8o d. 9e:uired% )repare the appropriate journa entry for each of the items above Ha. through j.I. Bou can assume that a transactions $ith emp oyees, customers, and supp iers $ere conducted in cash.
03-0*1
1&0. 3abb Company is a manufacturing firm that uses job-order costing. The companyAs inventory ba ances $ere as fo o$s at the beginning and end of the year%
The company app ies overhead to jobs using a predetermined overhead rate based on machine-hours. #t the beginning of the year, the company estimated that it $ou d $ork 1-,000 machine-hours and incur ?"-",000 in manufacturing overhead cost. The fo o$ing transactions $ere recorded for the year% 9a$ materia s $ere purchased, ?&1+,000. 9a$ materia s $ere re:uisitioned for use in production, ?&1",000 ?H3-+,000 direct and ?3+,000 indirectI. The fo o$ing emp oyee costs $ere incurred% direct abor, ?330,000G indirect abor, ?+1,000G and administrative sa aries, ?1*-,000. 8e ing costs, ?113,000. !actory uti ity costs, ?"1,000. 5epreciation for the year $as ?1"1,000 of $hich ?11&,000 is re ated to factory operations and ?-,000 is re ated to se ing, genera , and administrative activities. .anufacturing overhead $as app ied to jobs. The actua eve of activity for the year $as 1*,000 machine-hours. 8a es for the year tota ed ?1,"/",000. 9e:uired% a. )repare a schedu e of cost of goods manufactured in good form. b. (as the overhead underapp ied or overapp ied6 3y ho$ much6 c. )repare an income statement for the year in good form. The company c oses any underapp ied or overapp ied manufacturing overhead to Cost of 4oods 8o d.
03-0*"
1&1. 8and er Corporation bases its predetermined overhead rate on the estimated machinehours for the upcoming year. 5ata for the upcoming year appear be o$%
9e:uired% Compute the companyAs predetermined overhead rate.
1&". (ahr Corporation bases its predetermined overhead rate on the estimated abor-hours for the upcoming year. #t the beginning of the most recent y comp eted year, the company estimated the abor-hours for the upcoming year at 3",000 abor-hours. The estimated variab e manufacturing overhead $as ?-.1- per abor-hour and the estimated tota fi0ed manufacturing overhead $as ?*/&,3"0. The actua abor-hours for the year turned out to be 33,300 aborhours. 9e:uired% Compute the companyAs predetermined overhead rate for the recent y comp eted year.
03-0*3
1&3. 7scate Corporation bases its predetermined overhead rate on the estimated abor-hours for the upcoming year. 5ata for the most recent y comp eted year appear be o$%
9e:uired% Compute the companyAs predetermined overhead rate for the recent y comp eted year.
1&&. 5obrinski Corporation bases its predetermined overhead rate on the estimated aborhours for the upcoming year. #t the beginning of the most recent y comp eted year, the company estimated the abor-hours for the upcoming year at 13,000 abor-hours. The estimated variab e manufacturing overhead $as ?".3* per abor-hour and the estimated tota fi0ed manufacturing overhead $as ?1*+,130. 9e:uired% Compute the companyAs predetermined overhead rate.
03-0*&
1&*. The fo o$ing accounts $i be used in this prob em% #. 9a$ materia s inventory 3. #ccounts payab e C. Cost of goods so d 5. (ork in process inventory 7. .anufacturing overhead !. (ages and sa aries e0pense 4. #ccumu ated depreciation D. 5epreciation e0pense 2. !inished goods inventory J. (ages and sa aries payab e E. )repaid insurance @. 2nsurance e0pense 9e:uired% 7nter identifying etters in the b anks be o$ to indicate the accounts debited and credited under a job-order costing system for each of the fo o$ing summary transactions%
03-0**
1&+. 5uring June, Cat in Corporation purchased ?-+,000 of ra$ materia s on credit to add to its ra$ materia s inventory. # tota of ?/1,000 of ra$ materia s $as re:uisitioned from the storeroom for use in production. These re:uisitioned ra$ materia s inc uded ?*,000 of indirect materia s. 9e:uired% )repare journa entries to record the purchase of materia s and their use in production.
1&-. 4 en @ake Corporation recorded the fo o$ing transactions for the just comp eted month% a. ?+0,000 in ra$ materia s $ere purchased on account. b. ?*1,000 in ra$ materia s $ere re:uisitioned for use in production. Of this amount, ?&",000 $as for direct materia s and the remainder $as for indirect materia s. c. Tota abor $ages of ?1",000 $ere incurred and paid. Of this amount, ?/1,000 $as for direct abor and the remainder $as for indirect abor. d. #dditiona manufacturing overhead cost of ?1**,000 $ere incurred. # $ere on account. 9e:uired% 9ecord the above transactions in journa entries.
1&/. 5uring #ugust, # ee Corporation incurred ?+&,000 of actua .anufacturing Overhead costs. 5uring the same period, the .anufacturing Overhead app ied to (ork in )rocess $as ?++,000. 9e:uired% )repare journa entries to record the incurrence of manufacturing overhead and the app ication of manufacturing overhead to (ork in )rocess.
03-0*+
1&1. The fo o$ing cost data re ate to the manufacturing activities of >e$berry Company during the just comp eted year%
The company uses a predetermined overhead rate to app y manufacturing overhead cost to production. The predetermined overhead rate for the year $as ?1* per machine-hour. # tota of "3,000 machine-hours $ere recorded for the year. 9e:uired% a. Compute the amount of underapp ied or overapp ied manufacturing overhead cost for the year. b. )repare a 8chedu e of Cost of 4oods .anufactured for the year.
1*0. Job &3& $as recent y comp eted. The fo o$ing data have been recorded on its job cost sheet%
The company app ies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is ?1" per machine-hour. 9e:uired% Compute the unit product cost that $ou d appear on the job cost sheet for this job.
03-0*-
1*1. Job *11 $as recent y comp eted. The fo o$ing data have been recorded on its job cost sheet%
The company app ies manufacturing overhead on the basis of direct abor-hours. The predetermined overhead rate is ?"0 per direct abor-hour. 9e:uired% Compute the unit product cost that $ou d appear on the job cost sheet for this job.
1*". 8hapiro Corporation has provided the fo o$ing data for the most recent month%
9e:uired% )repare T-accounts for 9a$ .ateria s, (ork in )rocess, !inished 4oods, .anufacturing Overhead, and Cost of 4oods 8o d. 9ecord the beginning ba ances and each of the transactions isted above. !ina y, determine the ending ba ances.
03-0*/
1*3. 4oodenough 2nc. has provided the fo o$ing data for #ugust%
9e:uired% )repare T-accounts for 9a$ .ateria s, (ork in )rocess, !inished 4oods, and .anufacturing Overhead, and Cost of 4oods 8o d. 9ecord the beginning ba ances and each of the transactions isted above. !ina y, determine the ending ba ances.
03-0*1
1*&. 5uring 8eptember, )a iotta Corporation recorded the fo o$ing%
03-0+0
1**. Dirschman Corporation has provided the fo o$ing data for the month of #pri %
9e:uired% )repare a 8chedu e of Cost of 4oods .anufactured and a 8chedu e of Cost of 4oods 8o d in good form.
03-0+1
1*+. 8tra ey 2nc. has provided the fo o$ing data for the month of !ebruary. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?3,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. 9e:uired% )rovide the journa entry that $ou d record the a ocation of underapp ied or overapp ied among $ork in process, finished goods, and cost of goods so d.
03-0+"
1*-. # vardo 2nc. has provided the fo o$ing data for the month of >ovember. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?+,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. 9e:uired% 5etermine the cost of $ork in process, finished goods, and cost of goods so d #!T79 a ocation of the underapp ied or overapp ied manufacturing overhead for the period.
1*/. # number of companies in different industries are isted be o$% 1. 7 evator production and insta ation company ". Catt e feed ot that fattens catt e prior to s aughter 3. 3rick manufacturer &. #rchitectura firm that designs custom homes *. (inery that produces a number of varieta $ines +. 8ynthetic rubber manufacturer 9e:uired% !or each company, indicate $hether the company is most ike y to use job-order costing or process costing.
03-0+3
1*1. 8ome companies use process costing and some use job-order costing. (hich method a company uses depends on its industry6 # number of companies in different industries are isted be o$% 1. Contract $ater dri ing company ". Commercia photographer 3. Torti a manufacturer &. 7 ectric uti ity *. .ushroom farm that produces the standard button mushroom in caves 9e:uired% !or each company, indicate $hether the company is most ike y to use job-order costing or process costing.
1+0. (hether a company uses process costing or job-order costing depends on its industry. # number of companies in different industries are isted be o$% 1. 5airy farm ". Custom boat bui der 3. !ood caterer that supp ies food for $edding and other specia events &. #dvertising agency *. Coa mining company +. Catt e feed ot that fattens catt e prior to s aughter 9e:uired% !or each company, indicate $hether the company is most ike y to use job-order costing or process costing.
03-0+&
Chapter 03 Job-Order Costing #ns$er Eey
True / False Questions
1. The use of predetermined overhead rates in a job-order cost system makes it possib e to estimate the tota cost of a given job as soon as production is comp eted. TR E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #evel: ,as-
". # job cost sheet is used to accumu ate costs charged to a job. TR E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'( Com+ute the total cost an" average cost +er unit of a &o% #evel: ,as-
3. The fo o$ing journa entry $ou d be made to app y overhead cost to jobs in a job-order costing system%
F!"#E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #evel: Me"ium
03-0+*
&. 'nder a job-order cost system the (ork in )rocess account is debited $ith the cost of materia s purchased. F!"#E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #evel: Me"ium
*. The process of assigning overhead cost to jobs is kno$n as overhead app ication. TR E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #evel: ,as-
+. The cost of a comp eted job in a job-order costing system typica y consists of the actua direct materia s cost of the job, the actua direct abor cost of the job, and the actua manufacturing overhead cost of the job. F!"#E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #evel: Me"ium
03-0++
-. # debit ba ance in the .anufacturing Overhead account at the end of the year means that manufacturing overhead is overapp ied. F!"#E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'1 0se T)accounts to sho! the flo! of costs in a &o%)or"er costing s-stem #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
/. )eriod costs are e0pensed as incurred, rather than going into the (ork in )rocess account. TR E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'1 0se T)accounts to sho! the flo! of costs in a &o%)or"er costing s-stem #evel: Me"ium
1. #dvertising costs shou d be charged to the .anufacturing Overhead account. F!"#E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'1 0se T)accounts to sho! the flo! of costs in a &o%)or"er costing s-stem #evel: ,as-
10. (hen a job has been comp eted, the goods are transferred from the production department to the finished goods $arehouse and the journa entry $ou d inc ude a credit to (ork in )rocess. TR E
03-0+-
11. 'nderapp ied or overapp ied manufacturing overhead represents the difference bet$een actua overhead costs and app ied overhead costs. TR E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: ,as-
1". Top management sa aries shou d not go into the .anufacturing Overhead account. TR E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #evel: ,as-
13. 2f manufacturing overhead app ied e0ceeds the actua manufacturing overhead costs of the period, then manufacturing overhead is overapp ied. TR E
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: ,as-
Multiple Choice Questions
03-0+/
1&. 2n computing its predetermined overhead rate, .arp e Company inadvertent y eft its indirect abor costs out of the computation. This oversight $i cause% #. .anufacturing Overhead to be overapp ied. $% the Cost of 4oods .anufactured to be understated. C. the debits to the .anufacturing Overhead account to be understated. 5. the ending ba ance in (ork in )rocess to be overstated.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #earning $%&ective: '()'1 0se T)accounts to sho! the flo! of costs in a &o%)or"er costing s-stem #evel: 3ar"
1*. (hich of the fo o$ing is the correct formu a to compute the predetermined overhead rate6 #. 7stimated tota units in the a ocation base divided by estimated tota manufacturing overhead costs. $% 7stimated tota manufacturing overhead costs divided by estimated tota units in the a ocation base. C. #ctua tota manufacturing overhead costs divided by estimated tota units in the a ocation base. 5. 7stimated tota manufacturing overhead costs divided by actua tota units in the a ocation base.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #evel: ,as-
03-0+1
1+. (hich of the fo o$ing $ou d probab y be the east appropriate a ocation base for a ocating overhead in a high y automated manufacturer of specia ty va ves6 #. .achine-hours 3. )o$er consumption C% 5irect abor-hours 5. .achine setups
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #evel: 3ar"
1-. (hat document is used to determine the actua amount of direct abor to record on a job cost sheet6 !% Time ticket 3. )ayro register C. )roduction order 5. (ages payab e account
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'( Com+ute the total cost an" average cost +er unit of a &o% #evel: ,as-
03-0-0
1/. # proper journa entry to c ose overapp ied manufacturing overhead to Cost of 4oods 8o d $ou d be%
#. Option # 3. Option 3 C. Option C &% Option 5
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
11. 2n a job-order costing system, direct abor cost is ordinari y debited to% #. .anufacturing Overhead. 3. Cost of 4oods 8o d. C. !inished 4oods. &% (ork in )rocess.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #evel: Me"ium
03-0-1
"0. 2n a job-order costing system, the use of direct materia s that have been previous y purchased is recorded as a debit to% #. 9a$ .ateria s inventory. $% (ork in )rocess inventory. C. !inished 4oods inventory. 5. .anufacturing Overhead.
"1. The journa entry to record the incurrence of indirect abor costs is%
#. Option # 3. Option 3 C% Option C 5. Option 5
03-0-"
"". (hich of the fo o$ing accounts is debited $hen direct abor is recorded6 !% (ork in process 3. 8a aries and $ages e0pense C. 8a aries and $ages payab e 5. .anufacturing overhead
"3. The ba ance in the (ork in )rocess account e:ua s% #. the ba ance in the !inished 4oods inventory account. 3. the ba ance in the Cost of 4oods 8o d account. C% the ba ances on the job cost sheets of uncomp eted jobs. 5. the ba ance in the .anufacturing Overhead account.
"&. 2n a job-order costing system, indirect materia s that have been previous y purchased and that are used in production are recorded as a debit to% #. (ork in )rocess inventory. $% .anufacturing Overhead. C. !inished 4oods inventory. 5. 9a$ .ateria s inventory.
03-0-3
"*. .artine; #erospace Company uses a job-order costing system. The direct materia s for Job <0&*311 $ere purchased in Ju y and put into production in #ugust. The job $as not comp eted by the end of #ugust. #t the end of #ugust, in $hat account $ou d the direct materia cost assigned to Job <0&*311 be ocated6 #. 9a$ materia s inventory $% (ork in process inventory C. !inished goods inventory 5. Cost of goods manufactured
"+. (hich terms $i make the fo o$ing statement true6 (hen manufacturing overhead is overapp ied, the .anufacturing Overhead account has a ========== ba ance and app ied manufacturing overhead is greater than ========== manufacturing overhead. #. debit, actua $% credit, actua C. debit, estimated 5. credit, estimated
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-0-&
"-. (hich of the fo o$ing is correct $ith respect to c osing out overapp ied manufacturing overhead to Cost of 4oods 8o d versus c osing it out to Cost of 4oods 8o d and !inished 4oods and (ork in )rocess inventories6 #. The ba ance in the (ork in )rocess account after a ocation $i be higher if the overapp ied manufacturing overhead is c osed out by a ocating it to a appropriate accounts. 3. The ba ance in the (ork in )rocess account after a ocation $i be the same under either method. C% >et operating income $i be higher if a of the overapp ied manufacturing overhead is c osed out to Cost of 4oods 8o d. 5. Cost of 4oods 8o d $i be o$er if the overapp ied manufacturing overhead is c osed out by a ocating it to the inventory accounts as $e as to Cost of 4oods 8o d.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Com+rehension #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: 3ar"
"/. Overapp ied manufacturing overhead occurs $hen% !% app ied overhead e0ceeds actua overhead. 3. app ied overhead e0ceeds estimated overhead. C. actua overhead e0ceeds estimated overhead. 5. budgeted overhead e0ceeds actua overhead.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: no!le"ge #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: ,as-
03-0-*
"1. 5aguio Corporation uses direct abor-hours in its predetermined overhead rate. #t the beginning of the year, the tota estimated manufacturing overhead $as ?""&,*/0. #t the end of the year, actua direct abor-hours for the year $ere 1/,"00 hours, manufacturing overhead for the year $as underapp ied by ?1",100, and the actua manufacturing overhead $as ?"11,*/0. The predetermined overhead rate for the year must have been c osest to% !% ?11.&0 per machine-hour 3. ?1".3& per machine-hour C. ?1".0+ per machine-hour 5. ?10.*3 per machine-hour .anufacturing overhead app ied J #ctua overhead - 'nderapp ied overhead J ?"11,*/0 - ?1",100 J ?"0-,&/0 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?"0-,&/0 1/,"00 direct abor-hours J ?11.&0 per direct abor-hour
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: 3ar"
03-0-+
30. (ert Corporation uses a predetermined overhead rate based on direct abor cost to app y manufacturing overhead to jobs. @ast year, the companyAs estimated manufacturing overhead $as ?1,"00,000 and its estimated eve of activity $as *0,000 direct abor-hours. The companyAs direct abor $age rate is ?1" per hour. #ctua manufacturing overhead amounted to ?1,"&0,000, $ith actua direct abor cost of ?+*0,000. !or the year, manufacturing overhead $as% !% overapp ied by ?+0,000 3. underapp ied by ?+0,000 C. overapp ied by ?&0,000 5. underapp ied by ?&&,000 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?1,"00,000 *0,000 direct abor-hours J ?"&.00 per direct abor-hour (age rate per hour J #ctua direct abor cost #ctua direct abor-hours #ctua direct abor-hours J #ctua direct abor cost (age rate per hour J ?+*0,000 ?1".00 per direct abor-hour J *&,1++.+- direct abor-hours .anufacturing overhead app ied J )redetermined overhead rate #ctua direct abor-hours J ?"&.00 per direct abor-hour *&,1++.+- direct abor-hours J ?1,300,000
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #evel: Me"ium
03-0--
31. Crinks Corporation uses direct abor-hours in its predetermined overhead rate. #t the beginning of the year, the estimated direct abor-hours $ere 11,"00 hours and the tota estimated manufacturing overhead $as ?"*1,/&0. #t the end of the year, actua direct aborhours for the year $ere 10,/00 hours and the actua manufacturing overhead for the year $as ?"*&,/&0. Overhead at the end of the year $as% #. ?&,"/0 overapp ied 3. ?1,"/0 overapp ied C. ?1,"/0 underapp ied &% ?&,"/0 underapp ied )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?"*1,/&0 11,"00 direct abor-hours J ?"3."0 per direct abor-hour .anufacturing overhead app ied J )redetermined overhead rate #ctua direct abor-hours J ?"3."0 per direct abor-hour 10,/00 direct abor-hours J ?"*0,*+0
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-0-/
3". #t the beginning of the year, manufacturing overhead for the year $as estimated to be ?"+-,*00. #t the end of the year, actua direct abor-hours for the year $ere "",100 hours, the actua manufacturing overhead for the year $as ?"+",*00, and manufacturing overhead for the year $as overapp ied by ?13,-*0. 2f the predetermined overhead rate is based on direct abor-hours, then the estimated direct abor-hours at the beginning of the year used in the predetermined overhead rate must have been% #. "",100 direct abor-hours 3. 11,100 direct abor-hours C. "1,000 direct abor-hours &% "1,&00 direct abor-hours .anufacturing overhead app ied J #ctua overhead K Overapp ied overhead J ?"+",*00 K ?13,-*0 J ?"-+,"*0 .anufacturing overhead app ied J )redetermined overhead rate #ctua direct abor-hours )redetermined overhead rate J .anufacturing overhead app ied #ctua direct abor-hours J ?"-+,"*0 "",100 direct abor-hours J ?1".*0 per direct abor-hour )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated direct abor-hours 7stimated direct abor-hours J 7stimated tota manufacturing overhead )redetermined overhead rate J ?"+-,*00 ?1".*0 per direct abor-hour J "1,&00 direct abor-hours
03-0-1
33. 3race Corporation uses direct abor-hours in its predetermined overhead rate. #t the beginning of the year, the estimated direct abor-hours $ere "1,+00 hours. #t the end of the year, actua direct abor-hours for the year $ere "0,&00 hours, the actua manufacturing overhead for the year $as ?*0+,1"0, and manufacturing overhead for the year $as underapp ied by ?"3,&&0. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been% #. ?*01,1"0 3. ?*31,&&* C. ?&/3,&/0 &% ?*11,1"0 'nderapp ied overhead J #ctua overhead - .anufacturing overhead app ied .anufacturing overhead app ied J #ctua overhead - 'nderapp ied overhead J ?*0+,1"0 - ?"3,&&0 J ?&/3,&/0 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?&/3,&/0 "0,&00 direct abor-hours J ?"3.-0 per direct abor-hour )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base 7stimated tota manufacturing overhead J )redetermined overhead rate 7stimated tota amount of the a ocation base J ?"3.-0 per direct abor-hour "1,+00 direct abor-hours J ?*11,1"0
03-0/0
3&. Bista Corporation uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs. The company estimated manufacturing overhead at ?*10,000 for the year and direct abor-hours at 100,000 hours. #ctua manufacturing overhead costs incurred during the year tota ed ?*&0,000. #ctua direct abor-hours $ere 10*,000. (hat $as the overapp ied or underapp ied overhead for the year6 #. ?30,000 overapp ied 3. ?30,000 underapp ied C. ?&,*00 overapp ied &% ?&,*00 underapp ied )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?*10,000 100,000 direct abor-hours J ?*.10 per direct abor-hour #pp ied overhead J )redetermined overhead rate #ctua direct abor-hours J ?*.10 per direct abor-hour 10*,000 direct abor-hours J ?*3*,*00 Overapp iedLunderapp ied manufacturing overhead J #ctua manufacturing overhead #pp ied overhead J ?*&0,000 - ?*3*,*00 J ?&,*00 'nderapp ied
03-0/1
3*. .a co m Company uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs.
The cost records for 8eptember $i sho$% #. Overapp ied manufacturing overhead of ?1,*00 3. 'nderapp ied overhead of ?1,*00 C. Overapp ied manufacturing overhead of ?3,*00 &% 'nderapp ied overhead of ?3,*00 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?1-,000 13,+00 direct abor-hours J ?1."* per direct abor-hour #pp ied overhead J )redetermined overhead rate #ctua direct abor-hours J ?1."* per direct abor-hour 1",000 direct abor-hours J ?1*,000 Overapp iedLunderapp ied manufacturing overhead J #ctua manufacturing overhead #pp ied overhead J ?1/,*00 - ?1*,000 J ?3,*00 'nderapp ied
03-0/"
3+. The (ork in )rocess inventory account of a manufacturing firm sho$s a ba ance of ?3,000 at the end of an accounting period. The job cost sheets of t$o uncomp eted jobs sho$ charges of ?*00 and ?300 for direct materia s, and charges of ?&00 and ?+00 for direct abor. !rom this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct abor costs, of% #. /3C $% 1"0C C. &0C 5. 300C (ork-in-)rocess J 5irect materia s K 5irect abor K .anufacturing overhead app ied ?3,000 J H?*00 K ?300I K H?&00 K ?+00I K .anufacturing overhead app ied ?1,"00 J .anufacturing overhead app ied .anufacturing overhead app ied J )redetermined overhead rate 5irect abor cost )redetermined overhead rate J .anufacturing overhead app ied 5irect abor cost J ?1,"00 ?1,000 direct abor cost J 1"0C of direct abor cost
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #evel: 3ar"
03-0/3
3-. (ashtena$ Corporation uses a job-order costing system. The fo o$ing data are for ast year%
(ashtena$ app ies overhead using a predetermined rate based on direct abor-hours. (hat predetermined overhead rate $as used ast year6 #. ?3.** per direct abor-hour $% ?3."* per direct abor-hour C. ?3.0/ per direct abor-hour 5. ?3.3+ per direct abor-hour )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?31,000 1",000 direct abor-hours J ?3."* per direct abor-hour
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #evel: Me"ium
03-0/&
3/. Capa bo Corporation bases its predetermined overhead rate on the estimated abor-hours for the upcoming year. #t the beginning of the most recent y comp eted year, the company estimated the abor-hours for the upcoming year at *",000 abor-hours. The estimated variab e manufacturing overhead $as ?".-/ per abor-hour and the estimated tota fi0ed manufacturing overhead $as ?1,11",3+0. The actua abor-hours for the year turned out to be *",+00 aborhours. The predetermined overhead rate for the recent y comp eted year $as c osest to% #. ?".-/ 3. ?"*.&* C% ?"*.-1 5. ?"".13 7stimated tota manufacturing overhead J ?1,11",3+0 K H?".-/ per abor-hour *",000 aborhoursI J ?1,33+,1"0 )redetermined overhead rate J ?1,33+,1"0 *",000 abor-hours J ?"*.-1 per abor-hour
03-0/*
31. Compton Company uses a predetermined overhead rate in app ying overhead to production orders on a abor cost basis in 5epartment # and on a machine-hours basis in 5epartment 3. #t the beginning of the most recent y comp eted year, the company made the fo o$ing estimates%
(hat predetermined overhead rate $ou d be used in 5epartment # and 5epartment 3, respective y6 #. /3C and ?* 3. /3C and ?3 C% 1"0C and ?3 5. /3C and ?3 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?+-,"00 ?*+,000 direct abor cost J 1"0C of direct abor cost )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?&*,000 1*,000 machine-hours J ?3 per machine-hour
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #evel: ,as-
03-0/+
&0. Dayne Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. 5ata for the most recent y comp eted year appear be o$%
The predetermined overhead rate for the recent y comp eted year $as c osest to% #. ?-./1 3. ?30.1* C. ?"&.*" &% ?3".&1 7stimated tota manufacturing overhead J ?&+*,//0 K H?-./1 per machine-hour 11,000 machine-hoursI J ?+1*,-10 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?+1*,-10 11,000 machine-hours J ?3".&1 per machine-hour
03-0/-
&1. The Co ins Company uses predetermined overhead rates to app y manufacturing overhead to jobs. The predetermined overhead rate is based on abor cost in 5ept. # and machine-hours in 5ept. 3. #t the beginning of the year, the company made the fo o$ing estimates%
(hat predetermined overhead rates $ou d be used in 5ept # and 5ept 3, respective y6 #. -1C and ?&.00 $% 1&0C and ?&.00 C. 1&0C and ?&./0 5. -1C and ?&./0 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?11,000 ?+*,000 direct abor cost J 1&0C of direct abor cost )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?&/,000 1",000 machine-hours J ?& per machine-hour
03-0//
&". 8imoneau0 Corporation bases its predetermined overhead rate on the estimated machinehours for the upcoming year. #t the beginning of the most recent y comp eted year, the company estimated the machine-hours for the upcoming year at "",000 machine-hours. The estimated variab e manufacturing overhead $as ?/.+* per machine-hour and the estimated tota fi0ed manufacturing overhead $as ?+01,&00. The predetermined overhead rate for the recent y comp eted year $as c osest to% !% ?3+.3* per machine-hour 3. ?"-.-0 per machine-hour C. ?33.3" per machine-hour 5. ?/.+* per machine-hour 7stimated tota manufacturing overhead J ?+01,&00 K H?/.+* per machine-hour "",000 machine-hoursI J ?-11,-00 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?-11,-00 "",000 machine-hours J ?3+.3* per machine-hour
03-0/1
&3. Ee sh Company uses a predetermined overhead rate based on machine-hours to app y manufacturing overhead to jobs. The company has provided the fo o$ing estimated costs for ne0t year%
Ee sh estimates that *,000 direct abor-hours and 10,000 machine-hours $i be $orked during the year. The predetermined overhead rate per hour $i be% #. ?+./0 3. ?+.&0 C% ?3.&0 5. ?/."0 7stimated tota manufacturing overhead J 7stimated sa ary of production supervisor K 7stimated indirect materia s K 7stimated rent on factory e:uipment J ?"0,000 K ?&,000 K ?10,000 J ?3&,000 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?3&,000 10,000 machine-hours J ?3.&0 per machine-hour
03-010
&&. Eaiser Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. 5ata for the upcoming year appear be o$%
The predetermined overhead rate for the recent y comp eted year $as c osest to% #. ?+.+/ $% ?"*.0" C. ?"*.*1 5. ?1/.3& 7stimated tota manufacturing overhead J ?1,"/3,/00 K H?+.+/ per machine-hour -0,000 machine-hoursI J ?1,-*1,&00 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?1,-*1,&00 -0,000 machine-hours J ?"*.0" per machine-hour
03-011
&*. The fo o$ing data have been recorded for recent y comp eted Job +-& on its job cost sheet. 5irect materia s cost $as ?",031. # tota of 3" direct abor-hours and 1-* machinehours $ere $orked on the job. The direct abor $age rate is ?1& per abor-hour. The company app ies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is ?1* per machine-hour. The tota cost for the job on its job cost sheet $ou d be% #. ?",1+3. ?",&/C. ?",0+/ &% ?*,11"
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'( Com+ute the total cost an" average cost +er unit of a &o% #evel: ,as-
03-01"
&+. Job -31 $as recent y comp eted. The fo o$ing data have been recorded on its job cost sheet%
The company app ies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is ?1& per machine-hour. The tota cost that $ou d be recorded on the job cost sheet for Job -31 $ou d be% #. ?3,"// $% ?*,01& C. ?&,"*& 5. ?",&1/
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'( Com+ute the total cost an" average cost +er unit of a &o% #evel: ,as-
03-013
&-. The operations of the Eerry Company resu ted in underapp ied overhead of ?*,000. The entry to c ose out this ba ance to Cost of 4oods 8o d and the effect of the underapp ied overhead on Cost of 4oods 8o d $ou d be%
#. Option # 3. Option 3 C% Option C 5. Option 5
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-01&
&/. 9eiche derfer Corporation has provided data concerning the companyAs .anufacturing Overhead account for the month of #ugust. )rior to the c osing of the overapp ied or underapp ied ba ance to Cost of 4oods 8o d, the tota of the debits to the .anufacturing Overhead account $as ?*0,000 and the tota of the credits to the account $as ?-",000. (hich of the fo o$ing statements is true6 #. .anufacturing overhead transferred from !inished 4oods to Cost of 4oods 8o d during the month $as ?-",000. 3. .anufacturing overhead app ied to (ork in )rocess for the month $as ?*0,000. C% #ctua manufacturing overhead for the month $as ?*0,000. 5. .anufacturing overhead for the month $as underapp ied by ?"",000. The debits to the .anufacturing Overhead account consist of the actua manufacturing overhead for the month.
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-01*
&1. Du ts Corporation has provided data concerning the companyAs .anufacturing Overhead account for the month of >ovember. )rior to the c osing of the overapp ied or underapp ied ba ance to Cost of 4oods 8o d, the tota of the debits to the .anufacturing Overhead account $as ?-*,000 and the tota of the credits to the account $as ?*-,000. (hich of the fo o$ing statements is true6 #. .anufacturing overhead transferred from !inished 4oods to Cost of 4oods 8o d during the month $as ?-*,000. 3. #ctua manufacturing overhead incurred during the month $as ?*-,000. C. .anufacturing overhead app ied to (ork in )rocess for the month $as ?-*,000. &% .anufacturing overhead for the month $as underapp ied by ?1/,000.
03-01+
*0. Fandagriff Corporation has provided data concerning the companyAs .anufacturing Overhead account for the month of June. )rior to the c osing of the overapp ied or underapp ied ba ance to Cost of 4oods 8o d, the tota of the debits to the .anufacturing Overhead account $as ?--,000 and the tota of the credits to the account $as ?+&,000. (hich of the fo o$ing statements is true6 #. .anufacturing overhead transferred from !inished 4oods to Cost of 4oods 8o d during the month $as ?--,000. $% .anufacturing overhead app ied to (ork in )rocess for the month $as ?+&,000. C. .anufacturing overhead for the month $as overapp ied by ?13,000. 5. #ctua manufacturing overhead incurred during the month $as ?+&,000. The credits to the .anufacturing overhead account consist of manufacturing overhead app ied.
*1. 5uring October, Crusan Corporation incurred ?+",000 of direct abor costs and ?&,000 of indirect abor costs. The journa entry to record the accrua of these $ages $ou d inc ude a% #. debit to (ork in )rocess of ?++,000 3. credit to (ork in )rocess of ?++,000 C% debit to (ork in )rocess of ?+",000 5. credit to (ork in )rocess of ?+",000
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #evel: ,as-
03-01-
*". 5uring 5ecember at 2ngrim Corporation, ?-&,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?+,000. The journa entry to record the re:uisition from the storeroom $ou d inc ude a% #. debit to 9a$ .ateria s of ?-&,000 $% debit to (ork in )rocess of ?+/,000 C. credit to .anufacturing Overhead of ?+,000 5. debit to (ork in )rocess of ?-&,000
*3. 8tick es Corporation incurred ?-1,000 of actua .anufacturing Overhead costs during #ugust. 5uring the same period, the .anufacturing Overhead app ied to (ork in )rocess $as ?-*,000. The journa entry to record the incurrence of the actua .anufacturing Overhead costs $ou d inc ude a% !% debit to .anufacturing Overhead of ?-1,000 3. credit to .anufacturing Overhead of ?-1,000 C. credit to (ork in )rocess of ?-*,000 5. debit to (ork in )rocess of ?-*,000
03-01/
*&. Fa es Corporation had ?"",000 of ra$ materia s on hand on !ebruary 1. 5uring the month, the company purchased an additiona ?-*,000 of ra$ materia s. The journa entry to record the purchase of ra$ materia s $ou d inc ude a% #. credit to 9a$ .ateria s of ?1-,000 3. debit to 9a$ .ateria s of ?1-,000 C. credit to 9a$ .ateria s of ?-*,000 &% debit to 9a$ .ateria s of ?-*,000
**. (edd Corporation had ?3*,000 of ra$ materia s on hand on .ay 1. 5uring the month, the company purchased an additiona ?+/,000 of ra$ materia s. 5uring .ay, ?1",000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?*,000. The debits to the (ork in )rocess account as a conse:uence of the ra$ materia s transactions in .ay tota % #. ?1",000 3. ?0 C. ?+/,000 &% ?/-,000
03-011
*+. 5uring !ebruary, 5egan 2nc. transferred ?+0,000 from (ork in )rocess to !inished 4oods and recorded a Cost of 4oods 8o d of ?+*,000. The journa entries to record these transactions $ou d inc ude a% #. debit to !inished 4oods of ?+*,000 3. credit to Cost of 4oods 8o d of ?+*,000 C% credit to (ork in )rocess of ?+0,000 5. credit to !inished 4oods of ?+0,000
*-. Eirson Corporation incurred ?/1,000 of actua .anufacturing Overhead costs during 5ecember. 5uring the same period, the .anufacturing Overhead app ied to (ork in )rocess $as ?1",000. The journa entry to record the app ication of .anufacturing Overhead to (ork in )rocess $ou d inc ude a% #. debit to .anufacturing Overhead of ?1",000 3. debit to (ork in )rocess of ?/1,000 C% credit to .anufacturing Overhead of ?1",000 5. credit to (ork in )rocess of ?/1,000
03-0100
*/. #t the beginning of #ugust, Dogancamp Corporation had ?"+,000 of ra$ materia s on hand. 5uring the month, the company purchased an additiona ?-3,000 of ra$ materia s. 5uring #ugust, ?--,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. The credits to the 9a$ .ateria s account for the month of #ugust tota % #. ?-3,000 $% ?--,000 C. ?11,000 5. ?"+,000
*1. 5uring Ju y at Tiner Corporation, ?-&,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?-,000. The journa entry to record this re:uisition $ou d inc ude a debit to .anufacturing Overhead of% #. ?0 3. ?-&,000 C% ?-,000 5. ?+-,000
03-0101
+0. On !ebruary 1, Cadde Corporation had ?"/,000 of ra$ materia s on hand. 5uring the month, the company purchased an additiona ?-0,000 of ra$ materia s. 5uring !ebruary, ?/1,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. The debits to the 9a$ .ateria s account for the month of !ebruary tota % #. ?1/,000 $% ?-0,000 C. ?"/,000 5. ?/1,000
+1. 2n .ay, Dervey 2nc. incurred ?+0,000 of direct abor costs and ?3,000 of indirect abor costs. The journa entry to record the accrua of these $ages $ou d inc ude a% #. credit to .anufacturing Overhead of ?3,000 3. debit to (ork in )rocess of ?+3,000 C. credit to (ork in )rocess of ?+3,000 &% debit to .anufacturing Overhead of ?3,000
03-010"
+". The 5ona dson Company uses a job-order costing system. The fo o$ing data $ere recorded for Ju y%
Overhead is app ied to jobs at the rate of /0C of direct materia s cost. Jobs &-*, &--, and &-/ $ere comp eted during Ju y and transferred to finished goods. Jobs &-* and &-/ have been de ivered to the customer. 5ona dsonAs (ork in )rocess inventory ba ance on Ju y 31 $as% #. ?-,"/0 3. ?",+00 C% ?3,1+0 5. ?3,3"0
Overhead app ied J Overhead rate 5irect materia s 1 /0C ?*00 J ?&00 " /0C ?-00 J ?*+0 3 /0C ?1,000 J ?/00 & /0C ?1,"00 J ?1+0 Job &-+ remains in (ork in )rocess at the end of Ju y va ued at ?3,1+0
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'1 0se T)accounts to sho! the flo! of costs in a &o%)or"er costing s-stem #evel: Me"ium
03-0103
+3. )innini Co. uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs. @ast year, )innini Company incurred ?""*,000 in actua manufacturing overhead cost. The .anufacturing Overhead account sho$ed that overhead $as overapp ied ?1&,*00 for the year. 2f the predetermined overhead rate $as ?*.00 per direct abor-hour, ho$ many hours did the company $ork during the year6 #. &*,000 hours $% &-,100 hours C. &",100 hours 5. &&,000 hours Overapp ied manufacturing overheadJ .anufacturing overhead app ied - #ctua manufacturing overhead .anufacturing overhead app ied J #ctua manufacturing overhead K Overapp ied manufacturing overhead J ?""*,000 K ?1&,*00 J ?"31,*00 .anufacturing overhead app ied J )redetermined overhead rate #ctua direct abor-hours #ctua direct abor-hours J .anufacturing overhead app ied )redetermined overhead rate J ?"31,*00 ?*.00 per direct abor-hour J &-,100 direct abor-hours
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-010&
+&. 5o$an Company uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs. @ast year 5o$an Company incurred ?1*+,+00 in actua manufacturing overhead cost. The .anufacturing Overhead account sho$ed that manufacturing overhead $as underapp ied by ?1",+00 for the year. 2f the predetermined overhead rate is ?+.00 per direct abor-hour, ho$ many hours did the company $ork during the year6 #. "+,000 hours $% "&,000 hours C. "/,"00 hours 5. "*,000 hours 'nderapp ied manufacturing overhead J #ctua manufacturing overhead - .anufacturing overhead app ied .anufacturing overhead app ied J #ctua manufacturing overhead - 'nderapp ied manufacturing overhead J ?1*+,+00 - ?1",+00 J ?1&&,000 .anufacturing overhead app ied J )redetermined overhead rate #ctua direct abor-hours #ctua direct abor-hours J .anufacturing overhead app ied )redetermined overhead rate J ?1&&,000 ?+.00 per direct abor-hour J "&,000 direct abor-hours
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: 3ar"
03-010*
+*. Ee son Company app ies overhead to jobs on the basis of +0C of direct abor cost. 2f Job "01 sho$s ?"-,000 of manufacturing overhead app ied, the direct abor cost on the job $as% #. ?1+,"00 3. ?"-,000 C. ?3-,/00 &% ?&*,000 .anufacturing overhead app ied J )redetermined overhead rate #ctua direct abor cost #ctua direct abor cost J .anufacturing overhead app ied )redetermined overhead rate J ?"-,000 0.+0 J ?&*,000
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #evel: Me"ium
03-010+
++. The fo o$ing accounts are from ast yearAs books at 8harp .anufacturing%
8harp uses job-order costing and app ies manufacturing overhead to jobs based on direct abor costs. (hat is the amount of cost of goods manufactured for the year6 #. ?"*",000 3. ?""-,000 C. ?"30,000 &% ?"**,000 Cost of goods manufactured is represented by the debit to !inished 4oods and the credit to (ork in )rocess Hentry fI J ?"**,000 cost of goods manufactured
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'1 0se T)accounts to sho! the flo! of costs in a &o%)or"er costing s-stem #evel: Me"ium
03-010-
+-. Jurper Corporation used ?1*0,000 of direct materia s during #pri . #t the end of #pri , JurperAs direct materia s inventory $as ?"*,000 more than it $as at the beginning of the month. 5irect materia s purchases during the #pri amounted to% #. ?0 3. ?1"*,000 C. ?1*0,000 &% ?1-*,000 3eginning materia s inventory K 5irect materia s purchases J 7nding materia s inventory K 5irect materia s used 5irect materia purchases J 5irect materia s used K 2ncrease in materia s inventory J ?1*0,000 K ?"*,000 J ?1-*,000
03-010/
+/. 3otton 2nc. has provided the fo o$ing data for the month of .arch. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?-,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The cost of goods so d for .arch after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?1+3,&10 3. ?1--,&10 C. ?1+*,030 &% ?1-*,1*0 Cost of goods so d after a ocation of underapp ied overhead J ?1-0,&10 K MH?&1,3&0L?*3,000I ?-,000N J ?1-0,&10 K H-/C ?-,000I J ?1-*,1*0
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-0101
+1. 5esrevisseau 2nc., a manufacturing company, has provided the fo o$ing data for the month of #ugust. The ba ance in the (ork in )rocess inventory account $as ?10,000 at the beginning of the month and ?"",000 at the end of the month. 5uring the month, the company incurred direct materia s cost of ?+3,000 and direct abor cost of ?31,000. The actua manufacturing overhead cost incurred $as ?&0,000. The manufacturing overhead cost app ied to (ork in )rocess $as ?&3,000. The cost of goods manufactured for #ugust $as% !% ?133,000 3. ?1&",000 C. ?1&*,000 5. ?130,000 Cost of goods manufactured J 5irect materia s K 5irect abor K .anufacturing overhead app ied K 3eginning $ork in process inventory- 7nding $ork in process inventory J ?+3,000 K ?31,000 K ?&3,000 K ?10,000 - ?"",000 J ?133,000
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #evel: Me"ium
03-0110
-0. 'nder @amprey CompanyAs job-order costing system, manufacturing overhead is app ied to (ork in )rocess inventory using a predetermined overhead rate. 5uring January, @ampreyAs transactions inc uded the fo o$ing%
@amprey Company had no beginning or ending inventories. (hat $as the cost of goods manufactured for January6 #. ?30",000 $% ?310,000 C. ?3"",000 5. ?330,000 Cost of goods manufactured J 5irect materia s K 5irect abor K .anufacturing overhead app ied K 3eginning $ork in process inventory- 7nding $ork in process inventory J ?10,000 K ?10-,000 K ?113,000 K ?0 - ?0 J ?310,000
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #evel: Me"ium Source: CMA5 a"a+te"
03-0111
-1. 5e hoyo Corporation, a manufacturing company, has provided data concerning its operations for 8eptember. The beginning ba ance in the ra$ materia s account $as ?3-,000 and the ending ba ance $as ?"1,000. 9a$ materia s purchased during the month tota ed ?*-,000. .anufacturing overhead cost incurred during the month $as ?10",000, of $hich ?",000 consisted of ra$ materia s c assified as indirect materia s. The direct materia s cost for 8eptember $as% !% ?+3,000 3. ?*-,000 C. ?+*,000 5. ?&1,000 5irect materia s cost J 3eginning ra$ materia s inventory K 9a$ materia s purchases 7nding ra$ materia s - 2ndirect materia s J ?3-,000 K *-,000 - ?"1,000 - ?",000 J ?+3,000
03-011"
-". 4est 2nc. has provided the fo o$ing data for the month of >ovember. The ba ance in the !inished 4oods inventory account at the beginning of the month $as ?&1,000 and at the end of the month $as ?&*,000. The cost of goods manufactured for the month $as ?""+,000. The actua manufacturing overhead cost incurred $as ?-&,000 and the manufacturing overhead cost app ied to (ork in )rocess $as ?-0,000. The adjusted cost of goods so d that $ou d appear on the income statement for >ovember is% #. ?""+,000 3. ?"30,000 C. ?""",000 &% ?"3&,000 .anufacturing overhead underapp ied Hoverapp iedI J #ctua manufacturing overhead incurred - .anufacturing overhead app ied J ?-&,000 - ?-0,000 J ?&,000 underapp ied #djusted cost of goods so d J 3eginning finished goods inventory K Cost of goods manufactured - 7nding finished goods inventory K .anufacturing overhead underapp ied J ?&1,000 K ?""+,000 - ?&*,000 K ?&,000 J ?"3&,000
03-0113
-3. 5yde 2nc. has provided the fo o$ing data for the month of 5ecember. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?-,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The finished goods inventory at the end of 5ecember after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?"-,&1/ 3. ?30,""0 C. ?30,"/" &% ?"-,*+0 7nding finished goods inventory after a ocation of overapp ied manufacturing overhead J ?"/,/10 K MH?+,/&0L?3+,000I -?-,000N J ?"/,/10 K H11C -?-,000I J ?"-,*+0
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-011&
-&. @yster 2nc. has provided the fo o$ing data for the month of #ugust. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?1,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The $ork in process inventory at the end of #ugust after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% !% ?*,+*0 3. ?*,+&* C. ?*,*-0 5. ?*,*-* # ocating underapp ied manufacturing overhead increases the ba ances in the inventory and cost of goods so d accounts. 7nding $ork in process inventory after a ocation of underapp ied manufacturing overhead J ?*,+10 K MH?1,*"0L?3/,000I ?1,000N J ?*,+10 K H&C ?1,000I J ?*,+*0
03-011*
-*. .inturn 2nc. has provided the fo o$ing data for the month of 8eptember. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?",000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for 8eptember $ou d inc ude the fo o$ing% !% debit to (ork in )rocess of ?1"0 3. credit to (ork in )rocess of ?1*,/00 C. debit to (ork in )rocess of ?1*,/00 5. credit to (ork in )rocess of ?1"0 # ocating underapp ied manufacturing overhead increases the ba ances in the inventory and cost of goods so d accounts, resu ting in debits to those accounts.
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: 3ar"
03-011+
-+. 4raeser 2nc. has provided the fo o$ing data for the month of .ay. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?&,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for .ay $ou d inc ude the fo o$ing% #. credit to Cost of 4oods 8o d of ?100,110 $% credit to Cost of 4oods 8o d of ?",*"0 C. debit to Cost of 4oods 8o d of ?",*"0 5. debit to Cost of 4oods 8o d of ?100,110 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts, resu ting in credits to those accounts.
03-011-
--. The actua manufacturing overhead incurred at Dogans Corporation during #pri $as ?*1,000, $hi e the manufacturing overhead app ied to (ork in )rocess $as ?-&,000. The companyAs Cost of 4oods 8o d $as ?"/1,000 prior to c osing out its .anufacturing Overhead account. The company c oses out its .anufacturing Overhead account to Cost of 4oods 8o d. (hich of the fo o$ing statements is true6 !% .anufacturing overhead $as overapp ied by ?1*,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?"-&,000 3. .anufacturing overhead $as underapp ied by ?1*,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?"-&,000 C. .anufacturing overhead $as overapp ied by ?1*,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?30&,000 5. .anufacturing overhead $as underapp ied by ?1*,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?30&,000
03-011/
-/. 8harp CompanyAs records sho$ that overhead $as overapp ied by ?10,000 ast year. This overapp ied manufacturing overhead $as c osed out to the Cost of 4oods 8o d account at the end of the year. 2n trying to determine $hy overhead $as overapp ied by such a arge amount, the company has discovered that ?+,000 of depreciation on factory e:uipment $as charged to administrative e0pense in error. 4iven the above information, $hich of the fo o$ing statements is true6 #. .anufacturing overhead $as actua y overapp ied by ?1+,000 for the year. 3. The companyAs net income is understated by ?+,000 for the year. C% 'nder the circumstances posed above, the error in recording depreciation $ou d have no effect on net operating income for the year. 5. The ?+,000 in depreciation shou d have been charged to (ork in )rocess rather than to administrative e0pense. 2f the entry for factory e:uipment depreciation had been correct y recorded, overhead $ou d have been overapp ied by ?&,000 rather than ?10,000. 9ecording factory e:uipment depreciation as administrative depreciation, $hi e in error, has the same impact on net operating income as recording the entry correct y.
03-0111
-1. Cary 2nc. has provided the fo o$ing data for the month of .arch. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?10,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for .arch $ou d inc ude the fo o$ing% #. credit to !inished 4oods of ?100 3. debit to !inished 4oods of ?"1,"00 C. credit to !inished 4oods of ?"1,"00 &% debit to !inished 4oods of ?100 # ocating underapp ied manufacturing overhead increases the ba ances in the inventory and cost of goods so d accounts, resu ting in debits to those accounts.
03-01"0
/0. @iet; Corporation has provided the fo o$ing data concerning manufacturing overhead for January%
The companyAs Cost of 4oods 8o d $as ?3+1,000 prior to c osing out its .anufacturing Overhead account. The company c oses out its .anufacturing Overhead account to Cost of 4oods 8o d. (hich of the fo o$ing statements is true6 #. .anufacturing overhead $as underapp ied by ?"3,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?31",000 3. .anufacturing overhead $as underapp ied by ?"3,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?3&+,000 C% .anufacturing overhead $as overapp ied by ?"3,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?3&+,000 5. .anufacturing overhead $as overapp ied by ?"3,000G Cost of 4oods 8o d after c osing out the .anufacturing Overhead account is ?31",000
#djusted cost of goods so d J 'nadjusted cost of goods so d K 'nderapp ied manufacturing overhead - Overapp ied manufacturing overhead J ?3+1,000 K ?0 - ?"3,000 J ?3&+,000
3akker Corporation app ies manufacturing overhead on the basis of direct abor-hours. #t the beginning of the most recent year, the company based its predetermined overhead rate on tota estimated overhead of ?--,"*0 and ",*00 estimated direct abor-hours. #ctua manufacturing overhead for the year amounted to ?-1,000 and actua direct abor-hours $ere ",&00.
03-01"1
/1. The predetermined overhead rate for the year $as c osest to% #. ?"1.++ 3. ?3".1" C. ?31.+0 &% ?30.10 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota direct abor-hours J ?--,"*0 ",*00 direct abor-hours J ?30.10 per direct abor-hour
/". The app ied manufacturing overhead for the year $as c osest to% !% ?-&,1+0 3. ?-1,1/& C. ?-*,/&0 5. ?-1,00/ .anufacturing overhead app ied J )redetermined overhead rate #ctua direct abor-hours J ?30.10 per direct abor-hour ",&00 direct abor-hours J ?-&,1+0
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #evel: ,as-
03-01""
/3. The overhead for the year $as% #. ?3,010 overapp ied $% ?&,/&0 underapp ied C. ?&,/&0 overapp ied 5. ?3,010 underapp ied
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: ,as-
#cite i Corporation, $hich app ies manufacturing overhead on the basis of machine-hours, has provided the fo o$ing data for its most recent year of operations.
The estimates of the manufacturing overhead and of machine-hours $ere made at the beginning of the year for the purpose of computing the companyAs predetermined overhead rate for the year.
03-01"3
/&. The predetermined overhead rate is c osest to% #. ?&".30 3. ?&1./" C. ?&".1" &% ?&".00 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?3*-,000 /,*00 machine-hours J ?&".00 per machine-hour
/*. The app ied manufacturing overhead for the year is c osest to% #. ?3*-,1-1 3. ?3+0,*&C% ?3*1,*"0 5. ?3+",0// .anufacturing overhead app ied J )redetermined overhead rate #ctua amount of the a ocation base J ?&".00 per machine-hour /,*+0 machine-hours J ?3*1,*"0
03-01"&
/+. The overhead for the year $as% #. ?1,*"0 underapp ied 3. ?",*"0 overapp ied C% ?1,*"0 overapp ied 5. ?",*"0 underapp ied
Carter Corporation app ies manufacturing overhead on the basis of machine-hours. #t the beginning of the most recent year, the company based its predetermined overhead rate on tota estimated overhead of ?13*,/*0. #ctua manufacturing overhead for the year amounted to ?1&*,000 and actua machine-hours $ere *,++0. The companyAs predetermined overhead rate for the year $as ?"&.-0 per machine-hour.
03-01"*
/-. The predetermined overhead rate $as based on ho$ many estimated machine-hours6 #. *,/-0 $% *,*00 C. +,0/1 5. *,++0 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota machine-hours 7stimated tota machine-hours J 7stimated tota manufacturing overhead )redetermined overhead rate J ?13*,/*0 ?"&.-0 per machine-hour J *,*00 machine-hours
//. The app ied manufacturing overhead for the year $as c osest to% #. ?13*,/*0 3. ?1&1,"1/ C. ?1&3,/+1 &% ?131,/0" .anufacturing overhead app ied J )redetermined overhead rate #ctua direct abor-hours J ?"&.-0 per machine-hour *,++0 machine-hours J ?131,/0"
03-01"+
/1. The overhead for the year $as% #. ?*,11/ overapp ied 3. ?3,1*" underapp ied C. ?3,1*" overapp ied &% ?*,11/ underapp ied
8nappy Company has a job-order costing system and uses a predetermined overhead rate based on direct abor-hours to app y manufacturing overhead to jobs. .anufacturing overhead cost and direct abor hours $ere estimated at ?100,000 and &0,000 hours, respective y, for the year. 2n Ju y, Job <33& $as comp eted at a cost of ?*,000 in direct materia s and ?",&00 in direct abor. The abor rate is ?+ per hour. 3y the end of the year, 8nappy had $orked a tota of &*,000 direct abor-hours and had incurred ?110,"*0 actua manufacturing overhead cost.
03-01"-
10. 2f Job <33& contained "00 units, the unit product cost on the comp eted job cost sheet $ou d be% #. ?3-.00 $% ?&".00 C. ?&1.10 5. ?31.*0 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota direct abor-hours J ?100,000 &0,000 direct abor-hours J ?".*0 per direct abor-hour
O ?",&00 ?+ per direct abor-hour J &00 direct abor-hours
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'( Com+ute the total cost an" average cost +er unit of a &o% #evel: Me"ium
03-01"/
11. 8nappyAs manufacturing overhead for the year $as% #. ?10,"*0 underapp ied 3. ?1",*00 overapp ied C. ?1",*00 underapp ied &% ?","*0 overapp ied
@und Company app ies manufacturing overhead to jobs using a predetermined overhead rate of -*C of direct abor cost. #ny underapp ied or overapp ied manufacturing overhead cost is c osed out to Cost of 4oods 8o d at the end of the month. 5uring .arch, the fo o$ing transactions $ere recorded by the company%
03-01"1
1". The amount of direct materia s cost in the .arch 31 (ork in )rocess inventory account $as% !% ?*,"*0 3. ?3,*00 C. ?1,000 5. ?/,-*0 7nding $ork in process inventory J 5irect materia s K 5irect abor K .anufacturing overhead app ied ?1&,000 J 5irect materia s K ?*,000 K ?*,000 -*C ?1&,000 J 5irect materia s K ?*,000 K ?3,-*0 5irect materia s J ?1&,000 - ?*,000 - ?3,-*0 J ?*,"*0
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #evel: 3ar"
13. The Cost of 4oods .anufactured for .arch $as% #. ?++,*00 3. ?+1,*00 C% ?*1,*00 5. ?+3,000
O?"0,000 direct abor cost -*C of direct abor cost J ?1*,000
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #evel: 3ar"
03-0130
1&. The entry to dispose of the underapp ied or overapp ied manufacturing overhead cost for the month $ou d inc ude% #. a credit of ?",000 to Cost of 4oods 8o d. 3. a debit of ?*,000 to the Cost of 4oods 8o d. C. a debit of ?*,000 to the .anufacturing Overhead account. &% a credit of ?",000 to the .anufacturing Overhead account.
'nderapp ied manufacturing overhead increases the ba ance in cost of goods so d, resu ting in a debit entry.
1*. The ba ance on .arch 1 in the 9a$ .ateria s inventory account $as% !% ?/,*00 3. ?+,*00 C. ?-,*00 5. ?1,*00 3eginning ra$ materia s inventory K )urchases of ra$ materia s - 7nding ra$ materia s inventory J 9a$ materia s used in production 3eginning ra$ materia s inventory K ?"-,000 - ?-,*00 J ?"/,000 3eginning ra$ materia s inventory J ?"/,000 - ?"-,000 K ?-,*00 J ?/,*00
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #evel: Me"ium
03-0131
On #pri 1, 3ogdon Corporation had ?30,000 of ra$ materia s on hand. 5uring the month, the company purchased an additiona ?+3,000 of ra$ materia s. 5uring #pri , ?-+,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?",000.
1+. The journa entry to record the purchase of ra$ materia s $ou d inc ude a% !% debit to 9a$ .ateria s of ?+3,000 3. credit to 9a$ .ateria s of ?+3,000 C. credit to 9a$ .ateria s of ?13,000 5. debit to 9a$ .ateria s of ?13,000
1-. The journa entry to record the re:uisition from the storeroom $ou d inc ude a% #. debit to 9a$ .ateria s of ?-+,000 3. debit to (ork in )rocess of ?-+,000 C. credit to .anufacturing Overhead of ?",000 &% debit to (ork in )rocess of ?-&,000
03-013"
On #pri 1, 8te ter Corporation had ?3&,000 of ra$ materia s on hand. 5uring the month, the company purchased an additiona ?+0,000 of ra$ materia s. 5uring #pri , ?-0,000 of ra$ materia s $ere re:uisitioned from the storeroom for use in production. These ra$ materia s inc uded both direct and indirect materia s. The indirect materia s tota ed ?-,000. )repare journa entries to record these events. 'se these journa entries to ans$er the fo o$ing :uestions%
1/. The debits to the 9a$ .ateria s account for the month of #pri tota % #. ?1&,000 3. ?-0,000 C% ?+0,000 5. ?3&,000
11. The credits to the 9a$ .ateria s account for the month of #pri tota % #. ?1&,000 3. ?3&,000 C% ?-0,000 5. ?+0,000
03-0133
100. The debits to the (ork in )rocess account as a conse:uence of the ra$ materia s transactions in #pri tota % #. ?+0,000 3. ?0 C. ?-0,000 &% ?+3,000
101. The credits to the (ork in )rocess account as a conse:uence of the ra$ materia s transactions in #pri tota % #. ?-0,000 3. ?+3,000 C% ?0 5. ?+0,000 There $ere no credits to the (ork in )rocess account in #pri , on y debits.
03-013&
10". The debits to the .anufacturing Overhead account as a conse:uence of the ra$ materia s transactions in #pri tota % !% ?-,000 3. ?+3,000 C. ?0 5. ?-0,000
103. The credits to the .anufacturing Overhead account as a conse:uence of the ra$ materia s transactions in #pri tota % !% ?0 3. ?-0,000 C. ?+3,000 5. ?-,000 There $ere no credits to the .anufacturing overhead account in #pri , on y debits.
5uring 8eptember, 8tut;man Corporation incurred ?/+,000 of actua .anufacturing Overhead costs. 5uring the same period, the .anufacturing Overhead app ied to (ork in )rocess $as ?/1,000.
03-013*
10&. The journa entry to record the incurrence of the actua .anufacturing Overhead costs $ou d inc ude a% #. credit to .anufacturing Overhead of ?/+,000 $% debit to .anufacturing Overhead of ?/+,000 C. credit to (ork in )rocess of ?/1,000 5. debit to (ork in )rocess of ?/1,000
10*. The journa entry to record the app ication of .anufacturing Overhead to (ork in )rocess $ou d inc ude a% !% credit to .anufacturing Overhead of ?/1,000 3. credit to (ork in )rocess of ?/+,000 C. debit to .anufacturing Overhead of ?/1,000 5. debit to (ork in )rocess of ?/+,000
03-013+
5aane Company had on y one job in process on .ay 1. The job had been charged $ith ?1,000 of direct materia s, ?3,30" of direct abor, and ?*,3/" of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of ?"0.-0 per direct abor-hour. 5uring .ay, the fo o$ing activity $as recorded%
(ork in process inventory on .ay 30 contains ?",1"1 of direct abor cost. 9a$ materia s consist so e y of items that are c assified as direct materia s.
03-013-
10+. The amount of direct materia s cost in the .ay 30 $ork in process inventory account $as% !% ?*,+/0 3. ?11,100 C. ?/,&00 5. ?11,*00
O5irect abor $age rate J ?11,0*0 1,*00 direct abor-hours J ?1".-0 per direct abor-hour 5irect abor-hours attributab e to ending inventory J ?",1"1 ?1".-0 per direct abor-hour J "30 direct abor-hours .anufacturing overhead app ied J )redetermined overhead rate #ctua amount of the a ocation base J ?"0.-0 per direct abor-hour "30 direct abor-hours J ?&,-+1
03-013/
10-. The cost of goods manufactured for .ay $as% #. ?-/,*00 3. ?-/,100 C. ?--,1*0 &% ?-&,/""
10/. The entry to dispose of the underapp ied or overapp ied manufacturing overhead cost for the month $ou d inc ude a% !% debit of ?1,3*0 to .anufacturing Overhead. 3. credit of ?&,-+1 to .anufacturing Overhead. C. credit of ?1,3*0 to .anufacturing Overhead. 5. debit of ?&,-+1 to .anufacturing Overhead.
03-0131
The fo o$ing partia y comp eted T-accounts summari;e the transactions of 3e son Company for ast year%
03-01&0
#t the end of the year, the company c oses out the ba ance in the .anufacturing Overhead
03-01&1
account to Cost of 4oods 8o d.
03-01&"
101. The indirect abor cost is% !% ?+,000 3. ?13,000 C. ?1+,000 5. ?31,000
The debit to the .anufacturing Overhead account in this entry represents indirect abor costs.
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'1 0se T)accounts to sho! the flo! of costs in a &o%)or"er costing s-stem #evel: 3ar"
03-01&3
110. The cost of goods so d Hafter adjustment for underapp ied or overapp ied manufacturing overheadI is% #. ?+1,000 3. ?+",000 C. ?+3,000 &% ?+&,000
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'1 0se T)accounts to sho! the flo! of costs in a &o%)or"er costing s-stem #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: 3ar"
03-01&&
111. The manufacturing overhead app ied is% #. ?"/,000 $% ?"1,000 C. ?30,000 5. ?3/,000
Transaction H+I represents manufacturing overhead app ied at ?"1,000.
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'1 0se T)accounts to sho! the flo! of costs in a &o%)or"er costing s-stem #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-01&*
11". The cost of direct materia s used in production is% #. ?1",000 $% ?13,000 C. ?1+,000 5. ?"0,000
The debit portion of transaction H"I represents the cost of direct materia s used in production at ?13,000.
7ntin Corporation reported the fo o$ing data for the month of January%
03-01&+
113. The direct materia s cost for January is% #. ?*1,000 $% ?*+,000 C. ?-1,000 5. ?+*,000
03-01&-
11&. The cost of goods manufactured for January is% #. ?"0",000 3. ?"1&,000 C. ?"1-,000 &% ?111,000
03-01&/
11*. The adjusted cost of goods so d that appears on the income statement for January is% #. ?11-,000 $% ?"00,000 C. ?"01,000 5. ?111,000
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: 3ar"
Fan$agenen 2nc. has provided the fo o$ing data for the month of #pri %
03-01&1
11+. The cost of goods manufactured for #pri is% #. ?11/,000 3. ?"01,000 C% ?11-,000 5. ?"0",000
11-. The adjusted cost of goods so d that appears on the income statement for #pri is% #. ?11-,000 3. ?11*,000 C% ?"00,000 5. ?111,000
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-01*0
@eija .anufacturing Company uses a job-order costing system and started the month of .arch $ith one job in process HJob <3*1I. This job had ?*00 of cost assigned to it at this time. 5uring .arch, @eija assigned production costs as fo o$s to the jobs $orked on during the month%
5uring .arch, @eija comp eted and so d Job <3*1. Job <3+0 $as a so comp eted but $as not so d by month end. Job <3+1 $as not comp eted by the end of .arch.
11/. (hat is @eijaAs cost of goods manufactured for .arch6 #. ?+,*00 3. ?1&,100 C% ?1&,+00 5. ?1+,*00 Cost of goods manufactured J 5irect materia s K 5irect abor K .anufacturing overhead app ied K 3eginning $ork in process inventory- 7nding $ork in process inventory 2n this case, the sum of direct materia s, direct abor, and manufacturing overhead app ied e:ua s the sum of the costs assigned to the jobs during the month, $hich is ?1+,*00 HJ ?+,000 K ?/,100 K ?",&00I. The ending $ork in process inventory consists of the cost of Job <3+1, $hich $as started but not comp eted during the month. The other t$o jobs $ere comp eted during the month and therefore are not part of the ending $ork in process inventory. Cost of goods manufactured J ?1+,*00 K ?*00 - ?",&00 J ?1&,+00
03-01*1
111. (hat is @eijaAs $ork in process inventory ba ance at the end of .arch6 #. ?1,100 $% ?",&00 C. ?",100 5. ?10,000 The ending $ork in process inventory consists of the ?",&00 cost of Job <3+1, $hich $as started but not comp eted during the month. The other t$o jobs $ere comp eted during the month and therefore are not part of the ending $ork in process inventory.
7chenko Corporation uses a job-order costing system and app ies overhead to jobs using a predetermined overhead rate. 5uring the year the companyAs !inished 4oods inventory account $as debited for ?3/0,000 and credited for ?33*,*00. The ending ba ance in the !inished 4oods inventory account $as ?+",300. #t the end of the year, manufacturing overhead $as overapp ied by ?",100.
1"0. The ba ance in the !inished 4oods inventory account at the beginning of the year $as% #. ?",100 3. ?+",300 C. ?&&,*00 &% ?1-,/00 7nding finished goods inventory J 3eginning finished goods inventory K 5ebits - Credits ?+",300 J 3eginning finished goods inventory K ?3/0,000 - ?33*,*00 3eginning finished goods inventory J ?+",300 - ?3/0,000 K ?33*,*00 J ?1-,/00
03-01*"
1"1. 2f the app ied manufacturing overhead $as ?-0,&00, the actua manufacturing overhead cost for the year $as% #. ?-3,300 $% ?+-,*00 C. ?1"1,/00 5. ?/*,300 Overapp ied manufacturing overhead J .anufacturing overhead app ied - #ctua manufacturing overhead #ctua manufacturing overhead J .anufacturing overhead app ied - Overapp ied manufacturing overhead J ?-0,&00 - ?",100 J ?+-,*00
03-01*3
The fo o$ing partia y comp eted T-accounts summari;e transactions for !abat; Company during the year%
03-01*&
1"". The Cost of 4oods .anufactured $as% #. ?"3,/00 3. ?*,&00 C% ?"",+00 5. ?&+,&00
03-01**
1"3. The direct abor cost $as% !% ?/,-00 3. ?1",000 C. ?11,-00 5. ?1&,"00 The key is to recogni;e that the +,300 debit entry in the (ork in )rocess account represents direct materia s. The journa entry $ou d have been%
The other debit entry in the (ork in )rocess account in the amount of ?*,/00 is manufacturing overhead app ied because there is a corresponding credit entry for the same amount in the account .anufacturing Overhead.
03-01*+
1"&. The direct materia s cost $as% #. ?3,300 3. ?/,-00 C% ?+,300 5. ?-,300 The key is to recogni;e that the +,300 debit entry in the (ork in )rocess account represents direct materia s. The journa entry $ou d have been%
The direct materia s is the ?+,300 debit to (ork in )rocess.
1"*. The manufacturing overhead app ied $as% #. ?","00 3. ?3,000 C% ?*,/00 5. ?13,100 The manufacturing overhead app ied is the credit entry of ?*,/00 in the .anufacturing Overhead account.
03-01*-
1"+. The manufacturing overhead $as% #. ?","00 underapp ied 3. ?","00 overapp ied C. ?&00 overapp ied &% ?&00 underapp ied
8tanis;e$ski 2nc. has provided the fo o$ing data for the month of .arch. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
03-01*/
1"-. The cost of goods so d for .arch after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% !% ?""1,1&0 3. ?"31,*+0 C. ?"31,-*0 5. ?""1,-*0 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts. Cost of goods so d for .arch after a ocation of overapp ied manufacturing overhead J ?"30,-*0 K MH?+3,110L?-1,000I -?1,000N J ?"30,-*0 K H/1C -?1,000I J ?""1,1&0
1"/. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for .arch $ou d inc ude the fo o$ing% #. credit to !inished 4oods of ?3/,-/0 3. debit to !inished 4oods of ?3/,-/0 C% credit to !inished 4oods of ?1&0 5. debit to !inished 4oods of ?1&0 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts, resu ting in credits to those accounts.
03-01*1
@enci 2nc. has provided the fo o$ing data for the month of .ay. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
1"1. The $ork in process inventory at the end of .ay after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% !% ?1",-10 3. ?1",-3" C. ?1",1"/ 5. ?1",1*0 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts. (ork in process inventory at the end of .arch after a ocation of overapp ied manufacturing overhead J ?1",/30 K MH?3,1"0L?1/,000I -?3,000N J ?1",/30 K H&C -?3,000I J ?1",-10
03-01+0
130. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for .ay $ou d inc ude the fo o$ing% #. debit to Cost of 4oods 8o d of ?3&0,*/0 $% credit to Cost of 4oods 8o d of ?",*/0 C. credit to Cost of 4oods 8o d of ?3&0,*/0 5. debit to Cost of 4oods 8o d of ?",*/0 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts, resu ting in credits to those accounts.
Joens 2nc. has provided the fo o$ing data for the month of Ju y. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?",000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts.
03-01+1
131. The cost of goods so d for Ju y after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?*1,3"0 3. ?&-,3"0 C. ?*0,"/0 &% ?&/,3+0 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts. Cost of goods so d for Ju y after a ocation of overapp ied manufacturing overhead J ?&1,3"0 K MH?11,*"0L?"&,000I -?",000N J ?&1,3"0 K H&/C -?",000I J ?&/,3+0
13". The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for Ju y $ou d inc ude the fo o$ing% #. debit to (ork in )rocess of ?3+0 $% credit to (ork in )rocess of ?3+0 C. credit to (ork in )rocess of ?1","*0 5. debit to (ork in )rocess of ?1","*0 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts, resu ting in credits to those accounts.
03-01+"
.c(hite 2nc. has provided the fo o$ing data for the month of October. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?+,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts.
133. The finished goods inventory at the end of October after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% !% ?+0,/"0 3. ?*/,++0 C. ?*/,+&/ 5. ?+0,/3" # ocating underapp ied manufacturing overhead increases the ba ances in the inventory and cost of goods so d accounts. !inished goods inventory at the end of October after a ocation of underapp ied manufacturing overhead J ?*1,-&0 K MH?10,1/0L?+1,000I ?+,000N J ?*1,-&0 K H1/C ?+,000I J ?+0,/"0
03-01+3
13&. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for October $ou d inc ude the fo o$ing% #. debit to Cost of 4oods 8o d of ?"+",1"0 3. credit to Cost of 4oods 8o d of ?"+",1"0 C% debit to Cost of 4oods 8o d of ?&,/00 5. credit to Cost of 4oods 8o d of ?&,/00 # ocating underapp ied manufacturing overhead increases the ba ances in the inventory and cost of goods so d accounts, resu ting in debits to those accounts.
5enherder 2nc. has provided the fo o$ing data for the month of >ovember. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?*,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts.
03-01+&
13*. The finished goods inventory at the end of >ovember after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% #. ?*0,/&0 3. ?*0,/&/ C. ?*",+3" &% ?*",+&0 # ocating underapp ied manufacturing overhead increases the ba ances in the inventory and cost of goods so d accounts. !inished goods inventory at the end of >ovember after a ocation of underapp ied manufacturing overhead J ?*1,-&0 K MH?11,-00L?+*,000I ?*,000N J ?*1,-&0 K H1/C ?*,000I J ?*",+&0
13+. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for >ovember $ou d inc ude the fo o$ing% #. credit to (ork in )rocess of ?"*0 3. debit to (ork in )rocess of ?11,"00 C. credit to (ork in )rocess of ?11,"00 &% debit to (ork in )rocess of ?"*0 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts, resu ting in credits to those accounts.
03-01+*
4ressett 2nc. has provided the fo o$ing data for the month of #pri . There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?+,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts.
13-. The $ork in process inventory at the end of #pri after a ocation of any underapp ied or overapp ied manufacturing overhead for the month is c osest to% !% ?&,0*0 3. ?&,0/1 C. ?&,"*1 5. ?&,"10 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts. (ork in process inventory at the end of #pri after a ocation of overapp ied manufacturing overhead J ?&,1-0 K MH?1,300L?+*,000I -?+,000N J ?&,1-0 K H"C -?+,000I J ?&,0*0
03-01++
13/. The journa entry to record the a ocation of any underapp ied or overapp ied manufacturing overhead for #pri $ou d inc ude the fo o$ing% #. debit to !inished 4oods of ?&&,"/0 $% credit to !inished 4oods of ?1+0 C. debit to !inished 4oods of ?1+0 5. credit to !inished 4oods of ?&&,"/0 # ocating overapp ied manufacturing overhead reduces the ba ances in the inventory and cost of goods so d accounts, resu ting in credits to those accounts.
Essay Questions
03-01+-
131. # am Company is a manufacturing firm that uses job-order costing. #t the beginning of the year, the companyAs inventory ba ances $ere as fo o$s%
The company app ies overhead to jobs using a predetermined overhead rate based on machine-hours. #t the beginning of the year, the company estimated that it $ou d $ork &*,000 machine-hours and incur ?1/0,000 in manufacturing overhead cost. The fo o$ing transactions $ere recorded for the year% a. 9a$ materia s $ere purchased, ?&1+,000. b. 9a$ materia s $ere re:uisitioned for use in production, ?&"0,000 H?3/0,000 direct and ?&0,000 indirectI. c. The fo o$ing emp oyee costs $ere incurred% direct abor, ?&1&,000G indirect abor, ?+0,000G and administrative sa aries, ?"1",000. d. 8e ing costs, ?1&1,000. e. !actory uti ity costs, ?"0,000. f. 5epreciation for the year $as ?/1,000 of $hich ?-3,000 is re ated to factory operations and ?/,000 is re ated to se ing, genera , and administrative activities. g. .anufacturing overhead $as app ied to jobs. The actua eve of activity for the year $as &/,000 machine-hours. h. The cost of goods manufactured for the year $as ?1,00&,000. i. 8a es for the year tota ed ?1,&1+,000 and the costs on the job cost sheets of the goods that $ere so d tota ed ?1/1,000. j. The ba ance in the .anufacturing Overhead account $as c osed out to Cost of 4oods 8o d. 9e:uired% )repare the appropriate journa entry for each of the items above Ha. through j.I. Bou can assume that a transactions $ith emp oyees, customers, and supp iers $ere conducted in cash.
03-01+/
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
03-01+1
1&0. 3abb Company is a manufacturing firm that uses job-order costing. The companyAs inventory ba ances $ere as fo o$s at the beginning and end of the year%
The company app ies overhead to jobs using a predetermined overhead rate based on machine-hours. #t the beginning of the year, the company estimated that it $ou d $ork 1-,000 machine-hours and incur ?"-",000 in manufacturing overhead cost. The fo o$ing transactions $ere recorded for the year% 9a$ materia s $ere purchased, ?&1+,000. 9a$ materia s $ere re:uisitioned for use in production, ?&1",000 ?H3-+,000 direct and ?3+,000 indirectI. The fo o$ing emp oyee costs $ere incurred% direct abor, ?330,000G indirect abor, ?+1,000G and administrative sa aries, ?1*-,000. 8e ing costs, ?113,000. !actory uti ity costs, ?"1,000. 5epreciation for the year $as ?1"1,000 of $hich ?11&,000 is re ated to factory operations and ?-,000 is re ated to se ing, genera , and administrative activities. .anufacturing overhead $as app ied to jobs. The actua eve of activity for the year $as 1*,000 machine-hours. 8a es for the year tota ed ?1,"/",000. 9e:uired% a. )repare a schedu e of cost of goods manufactured in good form. b. (as the overhead underapp ied or overapp ied6 3y ho$ much6 c. )repare an income statement for the year in good form. The company c oses any underapp ied or overapp ied manufacturing overhead to Cost of 4oods 8o d.
03-01-0
a. 8chedu e of cost of goods manufactured
b. Overhead underapp ied or overapp ied
c. 2ncome 8tatement
03-01-1
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'* Com+ute a +re"etermine" overhea" rate #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
1&1. 8and er Corporation bases its predetermined overhead rate on the estimated machinehours for the upcoming year. 5ata for the upcoming year appear be o$%
9e:uired% Compute the companyAs predetermined overhead rate. 7stimated tota manufacturing overhead J ?/3/,--0 K H?3.&1 per machine-hour -3,000 machine-hoursI J ?1,013,*&0 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?1,013,*&0 -3,000 machine-hours J ?1&.1/ per machinehour
03-01-"
1&". (ahr Corporation bases its predetermined overhead rate on the estimated abor-hours for the upcoming year. #t the beginning of the most recent y comp eted year, the company estimated the abor-hours for the upcoming year at 3",000 abor-hours. The estimated variab e manufacturing overhead $as ?-.1- per abor-hour and the estimated tota fi0ed manufacturing overhead $as ?*/&,3"0. The actua abor-hours for the year turned out to be 33,300 aborhours. 9e:uired% Compute the companyAs predetermined overhead rate for the recent y comp eted year. 7stimated tota manufacturing overhead J ?*/&,3"0 K H?-.1- per machine-hour 3",000 machine-hoursI J ?/13,-+0 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?/13,-+0 3",000 machine-hours J ?"*.&3 per abor-hour
1&3. 7scate Corporation bases its predetermined overhead rate on the estimated abor-hours for the upcoming year. 5ata for the most recent y comp eted year appear be o$%
9e:uired% Compute the companyAs predetermined overhead rate for the recent y comp eted year. 7stimated tota manufacturing overhead J ?31&,*+0 K H?+./+ per abor-hour "&,000 aborhoursI J ?**1,"00 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?**1,"00 "&,000 abor-hours J ?"3.30 per abor-hour
03-01-3
1&&. 5obrinski Corporation bases its predetermined overhead rate on the estimated aborhours for the upcoming year. #t the beginning of the most recent y comp eted year, the company estimated the abor-hours for the upcoming year at 13,000 abor-hours. The estimated variab e manufacturing overhead $as ?".3* per abor-hour and the estimated tota fi0ed manufacturing overhead $as ?1*+,130. 9e:uired% Compute the companyAs predetermined overhead rate. 7stimated tota manufacturing overhead J ?1*+,130 K H?".3* per abor-hour 13,000 aborhoursI J ?1/+,+/0 )redetermined overhead rate J 7stimated tota manufacturing overhead 7stimated tota amount of the a ocation base J ?1/+,+/0 13,000 abor-hours J ?1&.3+ per abor-hour
03-01-&
1&*. The fo o$ing accounts $i be used in this prob em% #. 9a$ materia s inventory 3. #ccounts payab e C. Cost of goods so d 5. (ork in process inventory 7. .anufacturing overhead !. (ages and sa aries e0pense 4. #ccumu ated depreciation D. 5epreciation e0pense 2. !inished goods inventory J. (ages and sa aries payab e E. )repaid insurance @. 2nsurance e0pense 9e:uired% 7nter identifying etters in the b anks be o$ to indicate the accounts debited and credited under a job-order costing system for each of the fo o$ing summary transactions%
a. 7, E b. C, 2 c. #, 3 d. 5, J e. 2, 5 f. !, J g. 7, 4 h. 5, # i. 5, 7
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #evel: Me"ium
03-01-*
1&+. 5uring June, Cat in Corporation purchased ?-+,000 of ra$ materia s on credit to add to its ra$ materia s inventory. # tota of ?/1,000 of ra$ materia s $as re:uisitioned from the storeroom for use in production. These re:uisitioned ra$ materia s inc uded ?*,000 of indirect materia s. 9e:uired% )repare journa entries to record the purchase of materia s and their use in production.
@eve % 7asy
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'/ 0n"erstan" the flo! of costs in a &o%)or"er costing s-stem an" +re+are a++ro+riate &ournal entries to recor" costs
03-01-+
1&-. 4 en @ake Corporation recorded the fo o$ing transactions for the just comp eted month% a. ?+0,000 in ra$ materia s $ere purchased on account. b. ?*1,000 in ra$ materia s $ere re:uisitioned for use in production. Of this amount, ?&",000 $as for direct materia s and the remainder $as for indirect materia s. c. Tota abor $ages of ?1",000 $ere incurred and paid. Of this amount, ?/1,000 $as for direct abor and the remainder $as for indirect abor. d. #dditiona manufacturing overhead cost of ?1**,000 $ere incurred. # $ere on account. 9e:uired% 9ecord the above transactions in journa entries.
03-01--
1&/. 5uring #ugust, # ee Corporation incurred ?+&,000 of actua .anufacturing Overhead costs. 5uring the same period, the .anufacturing Overhead app ied to (ork in )rocess $as ?++,000. 9e:uired% )repare journa entries to record the incurrence of manufacturing overhead and the app ication of manufacturing overhead to (ork in )rocess.
03-01-/
1&1. The fo o$ing cost data re ate to the manufacturing activities of >e$berry Company during the just comp eted year%
The company uses a predetermined overhead rate to app y manufacturing overhead cost to production. The predetermined overhead rate for the year $as ?1* per machine-hour. # tota of "3,000 machine-hours $ere recorded for the year. 9e:uired% a. Compute the amount of underapp ied or overapp ied manufacturing overhead cost for the year. b. )repare a 8chedu e of Cost of 4oods .anufactured for the year.
b. 8chedu e of Cost of 4oods .anufactured
03-01-1
AACSB: Anal-tic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: A++lication #earning $%&ective: '()'. A++l- overhea" cost to &o%s using a +re"etermine" overhea" rate #earning $%&ective: '()'4 Pre+are sche"ules of cost of goo"s manufacture" an" cost of goo"s sol" an" an income statement #earning $%&ective: '()'2 Com+ute un"era++lie" or overa++lie" overhea" cost an" +re+are the &ournal entr- to close the %alance in Manufacturing $verhea" to the a++ro+riate accounts #evel: Me"ium
1*0. Job &3& $as recent y comp eted. The fo o$ing data have been recorded on its job cost sheet%
The company app ies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is ?1" per machine-hour. 9e:uired% Compute the unit product cost that $ou d appear on the job cost sheet for this job. Cost 8ummary
03-01/0
1*1. Job *11 $as recent y comp eted. The fo o$ing data have been recorded on its job cost sheet%
The company app ies manufacturing overhead on the basis of direct abor-hours. The predetermined overhead rate is ?"0 per direct abor-hour. 9e:uired% Compute the unit product cost that $ou d appear on the job cost sheet for this job. Cost 8ummary
03-01/1
1*". 8hapiro Corporation has provided the fo o$ing data for the most recent month%
9e:uired% )repare T-accounts for 9a$ .ateria s, (ork in )rocess, !inished 4oods, .anufacturing Overhead, and Cost of 4oods 8o d. 9ecord the beginning ba ances and each of the transactions isted above. !ina y, determine the ending ba ances.
03-01/"
03-01/3
1*3. 4oodenough 2nc. has provided the fo o$ing data for #ugust%
03-01/&
03-01/*
1*&. 5uring 8eptember, )a iotta Corporation recorded the fo o$ing%
03-01/+
03-01/-
1**. Dirschman Corporation has provided the fo o$ing data for the month of #pri %
9e:uired% )repare a 8chedu e of Cost of 4oods .anufactured and a 8chedu e of Cost of 4oods 8o d in good form.
03-01//
1*+. 8tra ey 2nc. has provided the fo o$ing data for the month of !ebruary. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as overapp ied by ?3,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. 9e:uired% )rovide the journa entry that $ou d record the a ocation of underapp ied or overapp ied among $ork in process, finished goods, and cost of goods so d.
03-01/1
1*-. # vardo 2nc. has provided the fo o$ing data for the month of >ovember. There $ere no beginning inventoriesG conse:uent y, the direct materia s, direct abor, and manufacturing overhead app ied isted be o$ are a for the current month.
.anufacturing overhead for the month $as underapp ied by ?+,000. The company a ocates any underapp ied or overapp ied manufacturing overhead among $ork in process, finished goods, and cost of goods so d at the end of the month on the basis of the overhead app ied during the month in those accounts. 9e:uired% 5etermine the cost of $ork in process, finished goods, and cost of goods so d #!T79 a ocation of the underapp ied or overapp ied manufacturing overhead for the period.
03-0110
1*/. # number of companies in different industries are isted be o$% 1. 7 evator production and insta ation company ". Catt e feed ot that fattens catt e prior to s aughter 3. 3rick manufacturer &. #rchitectura firm that designs custom homes *. (inery that produces a number of varieta $ines +. 8ynthetic rubber manufacturer 9e:uired% !or each company, indicate $hether the company is most ike y to use job-order costing or process costing. 1. 7 evator production and insta ation companyG Job-Order Costing ". Catt e feed ot that fattens catt e prior to s aughterG )rocess Costing 3. 3rick manufacturerG )rocess Costing &. #rchitectura firm that designs custom homesG Job-Order Costing *. (inery that produces a number of varieta $inesG Job-Order Costing +. 8ynthetic rubber manufacturerG )rocess Costing
AACSB: Anal-tic AICPA BB: In"ustrAICPA FN: Measurement Bloom's: A++lication #earning $%&ective: $ther to+ics #evel: ,as-
03-0111
1*1. 8ome companies use process costing and some use job-order costing. (hich method a company uses depends on its industry6 # number of companies in different industries are isted be o$% 1. Contract $ater dri ing company ". Commercia photographer 3. Torti a manufacturer &. 7 ectric uti ity *. .ushroom farm that produces the standard button mushroom in caves 9e:uired% !or each company, indicate $hether the company is most ike y to use job-order costing or process costing. 1. Contract $ater dri ing companyG Job-Order Costing ". Commercia photographerG Job-Order Costing 3. Torti a manufacturerG )rocess Costing &. 7 ectric uti ityG )rocess Costing *. .ushroom farm that produces the standard button mushroom in cavesG )rocess Costing
03-011"
1+0. (hether a company uses process costing or job-order costing depends on its industry. # number of companies in different industries are isted be o$% 1. 5airy farm ". Custom boat bui der 3. !ood caterer that supp ies food for $edding and other specia events &. #dvertising agency *. Coa mining company +. Catt e feed ot that fattens catt e prior to s aughter 9e:uired% !or each company, indicate $hether the company is most ike y to use job-order costing or process costing. 1. 5airy farmG )rocess Costing ". Custom boat bui derG Job-Order Costing 3. !ood caterer that supp ies food for $edding and other specia eventsG Job-Order Costing &. #dvertising agencyG Job-Order Costing *. Coa mining companyG )rocess Costing +. Catt e feed ot that fattens catt e prior to s aughterG )rocess Costing
03-0113

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Chapter 3 - Test Bank

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Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

1. #dvertising costs shou d be charged to the .anufacturing Overhead account. True !a se

Multiple Choice Questions

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

#. Option # 3. Option 3 C. Option C 5. Option 5

Chapter 03 Job-Order Costing

#. Option # 3. Option 3 C. Option C 5. Option 5

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

#. Option # 3. Option 3 C. Option C 5. Option 5

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

account to Cost of 4oods 8o d.

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing

9e:uired% Compute the companyAs predetermined overhead rate.

Chapter 03 Job-Order Costing

Chapter 03 Job-Order Costing