Chapter 003, Systems Design: Job-Order Costing

| October 3, 2018

56. Inks Corporation incurred $69,000 of actual Manufacturing Overhead
costs during June. During the same period, the Manufacturing Overhead applied
to Work in Process was $70,000. The journal entry to record the incurrence of
the actual Manufacturing Overhead costs would include a:

A. debit to Manufacturing Overhead of $69,000 B. debit to Work in
Process of $70,000
C. credit to Manufacturing
Overhead of $69,000 D. credit to Work in Process of $70,000

57. Mincks Corporation incurred $64,000 of actual Manufacturing
Overhead costs during November. During the same period, the Manufacturing
Overhead applied to Work in Process was $61,000. The journal entry to record
the application of Manufacturing Overhead to Work in Process would include a:

A.
debit to Work in Process of $64,000

B. credit to Manufacturing Overhead of $61,000 C. credit to Work
in Process of $64,000
D. debit to
Manufacturing Overhead of $61,000

58. During October, Kreitner Inc. transferred $73,000 from Work in
Process to Finished Goods and recorded a Cost of Goods Sold of $76,000. The
journal entries to record these transactions would include a:
A. credit to Work in Process of $73,000 B. credit to Cost of Goods
Sold of $76,000 C. debit to Finished Goods of $76,000
D. credit to Finished
Goods of $73,000

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Chapter 003, Systems Design: Job-Order Costing

60. During December, Fleeger Corporation incurred $51,000 of direct
labor costs and $5,000 of indirect labor costs. The journal entry to record the
accrual of these wages would include a:
A. debit to Work in Process
of $56,000 B. credit to Work in Process of $51,000 C. debit to Work in Process
of $51,000 D. credit to Work in Process of $56,000

61. Lucy Sportswear manufactures a specialty line of T-shirts. The
company uses a job-order costing system. During March, the following costs were
incurred on Job ICU2: direct materials $13,700 and direct labor $4,800. In
addition, selling and shipping costs of $7,000 were incurred on the job.
Manufacturing overhead was applied at the rate of $25 per machine-hour and Job
ICU2 required 800 machine-hours. If Job ICU2 consisted of 7,000 shirts, the
Cost of Goods Sold per shirt was:

A. $6.50 B. $6.00 C. $5.70 D. $5.50

62. Pricton Corporation has a job-order costing system. For the month
of April, the following debits (credits) appeared in the Work in Process
account:

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Pricton applies overhead at
a predetermined rate of 90% of direct labor cost. Job No. 50, the only job
still in process at the end of April, has been charged with manufacturing
overhead of $2,250. The amount of direct materials charged to Job No. 50 was:

A. $9,000

B. $4,250

C. $2,500

D. $2,250

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Chapter 003, Systems Design: Job-Order Costing

63. Beaver Company used a
predetermined overhead rate last year of $2 per direct labor-hour, based on an
estimate of 25,000 direct labor-hours to be worked during the year. Actual
costs and activity during the year were:

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The underapplied or overapplied overhead last year was:

A. $1,000 underapplied
B. $1,000 overapplied

C. $3,000 overapplied

D. $2,000 underapplied

64. Paul Company used a predetermined overhead rate during the
year just completed of $3.50 per direct labor-hour, based on an estimate of
22,000 direct labor-hours to be worked during the year. Actual overhead cost
and activity during the year were:

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The underapplied or overapplied overhead for the year would be:

A. $13,000 underapplied

B. $10,500 overapplied

C. $2,500 overapplied

D. $2,500 underapplied

65. Sweet Company applies
overhead to jobs on the basis of 125% of direct labor cost. If Job 107 shows
$10,000 of manufacturing overhead applied, how much was the direct labor cost
on the job?
A. $8,000
B. $12,500

C. $11,250

D. $10,000

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Chapter 003, Systems Design: Job-Order Costing

66. Pitzer Corporation, a manufacturing company, has provided data
concerning its operations for March. The beginning balance in the raw materials
account was $29,000 and the ending balance was $38,000. Raw materials purchases
during the month totaled $74,000. Manufacturing overhead cost incurred during
the month was $106,000, of which $7,000 consisted of raw materials classified
as indirect materials. The direct materials cost for March was:

A. $83,000 B. $58,000 C. $74,000 D. $65,000

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