Chapter 003, Systems Design: Job-Order Costing

| October 3, 2018

66. Jarratt Inc., a manufacturing company, has provided the following
data for the month of September. The balance in the Work in Process inventory
account was $21,000 at the beginning of the month and $24,000 at the end of the
month. During the month, the company incurred direct materials cost of $69,000
and direct labor cost of $31,000. The actual manufacturing overhead cost
incurred was $54,000. The manufacturing overhead cost applied to Work in
Process was $58,000. The cost of goods manufactured for September was:

A. $158,000 B. $154,000 C.
$151,000 D. $155,000

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

A. $218,000 B. $220,000 C.
$222,000 D. $221,000

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Chapter 003, Systems Design: Job-Order Costing

69. The following data have been provided by a company:

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Compute the amount of direct
materials used during November if $20,000 in raw materials were purchased
during the month.
A. $21,000
B. $19,000

C. $18,000

D. $15,000

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

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Manufacturing overhead for the month was overapplied by $3,000.

The company allocates any
underapplied or overapplied overhead among work in process, finished goods, and
cost of goods sold at the end of the month on the basis of the overhead applied
during the month in those accounts.

The cost of goods sold for October after allocation of any
underapplied or overapplied overhead for the month is closest to:
A. $215,600
B. $210,980

C. $210,290

D. $216,290

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Chapter 003, Systems Design: Job-Order Costing

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

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Manufacturing overhead for the month was underapplied by $7,000.

The company allocates any
underapplied or overapplied overhead among work in process, finished goods, and
cost of goods sold at the end of the month on the basis of the overhead applied
during the month in those accounts.

The work in process
inventory at the end of January after allocation of any underapplied or
overapplied overhead for the month is closest to:

A. $5,975

B. $6,340

C. $5,920

D. $6,285

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Chapter 003, Systems Design: Job-Order Costing

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

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

The company allocates any
underapplied or overapplied overhead among work in process, finished goods, and
cost of goods sold at the end of the month on the basis of the overhead applied
during the month in those accounts.

The finished goods inventory
at the end of December after allocation of any underapplied or overapplied
overhead for the month is closest to:

A. $56,950

B. $51,750

C. $51,691

D. $57,009

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Chapter 003, Systems Design: Job-Order Costing

73.
Mieras Inc. has provided the following data for the month of November. There
were no beginning inventories; consequently, the direct materials, direct
labor, and manufacturing overhead applied listed below are all for the current
month.

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Manufacturing overhead for the month was underapplied by $2,000.

The company allocates any
underapplied or overapplied overhead among work in process, finished goods, and
cost of goods sold at the end of the month on the basis of the overhead applied
during the month in those accounts.

The journal entry to record the allocation of any underapplied or
overapplied overhead for November would include the following:

A. credit to Work in Process of $140

B. debit to Work in Process of $140

C. credit to Work in Process of $13,670

D. debit to Work in Process of $13,670

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Chapter 003, Systems Design: Job-Order Costing

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

.jpg”>

Manufacturing overhead for the month was underapplied by $1,000.

The
company allocates any underapplied or overapplied overhead among work in
process, finished goods, and cost of goods sold at the end of the month on the
basis of the overhead applied during the month in those accounts.

The journal entry to record the allocation of any underapplied or
overapplied overhead for December would include the following:

A. debit to Finished Goods of $120

B. credit to Finished Goods of $42,480

C. debit to Finished Goods of $42,480

D. credit to Finished Goods of $120

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Chapter 003, Systems Design: Job-Order Costing

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

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Manufacturing overhead for the month was underapplied by $3,000.

The company allocates any
underapplied or overapplied overhead among work in process, finished goods, and
cost of goods sold at the end of the month on the basis of the overhead applied
during the month in those accounts.

The journal entry to record the allocation of any underapplied or
overapplied overhead for August would include the following:

A. debit to Cost of Goods Sold of $142,300

B. credit to Cost of Goods Sold of $2,220

C. credit to Cost of Goods Sold of $142,300

D. debit to Cost of Goods Sold of $2,220

76. The actual manufacturing overhead incurred at Huberty
Corporation during January was $73,000, while the manufacturing overhead
applied to Work in Process was $78,000. The company’s Cost of Goods Sold was
$349,000 prior to closing out its Manufacturing Overhead account. The company
closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of
the following statements is true?

A. Manufacturing overhead was overapplied by $5,000; Cost of Goods
Sold after closing out the Manufacturing Overhead account is $354,000
B.
Manufacturing overhead was
underapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing
Overhead account is $344,000
C.
Manufacturing overhead was
underapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing
Overhead account is $354,000
D. Manufacturing overhead was overapplied by $5,000; Cost of Goods
Sold after closing out the Manufacturing Overhead account is $344,000

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