Chapter 3 HW PDF

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Summary

Chapter 3 homework...

Description

Score:

1.

390/390

Points

100

Award: 10 out of 10.00 points

% 



Gullett Corporation had $35,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $84,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

✓



debit to Raw Materials of $119,000



credit to Raw Materials of $84,000



debit to Raw Materials of $84,000



credit to Raw Materials of $119,000

 Raw Materials Accounts Payable

84,000





84,000

References Multiple Choice

2.

Award: 10 out of 10.00 points

Difficulty: 1 Easy

Learning Objective: 03-01 Understand the flow of costs in a joborder costing system and prepare appropriate journal entries to record costs. 



During March, Zea Inc. transferred $57,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $63,000. The journal entries to record these transactions would include a:

✓



credit to Cost of Goods Sold of $63,000.



debit to Finished Goods of $63,000.



credit to Work in Process of $57,000.



credit to Finished Goods of $57,000.

 Finished Goods Work in Process



57,000

Cost of Goods Sold Finished Goods



 57,000

  63,000

 63,000

References Multiple Choice

Difficulty: 1 Easy

Learning Objective: 03-01 Understand the flow of costs in a joborder costing system and prepare appropriate journal entries to record costs.

3.

Award: 10 out of 10.00 points





During June, Buttrey Corporation incurred $75,000 of direct labor costs and $15,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: ✓



debit to Work in Process of $75,000.



credit to Work in Process of $90,000.



debit to Work in Process of $90,000.



credit to Work in Process of $75,000.







Work in Process Manufacturing Overhead Salaries and Wages Payable

75,000 15,000

  

90,000

References Multiple Choice

4.

Difficulty: 1 Easy

Award: 10 out of 10.00 points

Learning Objective: 03-01 Understand the flow of costs in a joborder costing system and prepare appropriate journal entries to record costs. 



The following accounts are from last year’s books at Sharp Manufacturing: 

Work In Process

Raw Materials Bal (a) 

0 (b) 173,500  15,700

Bal  (b)  (c) (e) 

157,800 

0 (g) 525,200  46,200

(f)

525,200

  

   



Manufacturing Overhead

Finished Goods Bal (f) 

0 133,900 171,800 219,500 0

479,000 

(b)  (c)  (d) 

23,900 27,900 159,800 

(e)   

219,500   7,900

Cost of Goods Sold (g)

479,000   



 

 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?

✓



$7,900 underapplied



$7,900 overapplied



$27,900 underapplied



$27,900 overapplied

The manufacturing overhead is overapplied by $7,900 because the manufacturing overhead applied of $219,500 exceeds the manufacturing overhead incurred by $7,900. References Multiple Choice

Difficulty: 1 Easy

Learning Objective: 03-02 Use T-accounts to show the flow of costs in a job-order costing system.

5.

Award: 10 out of 10.00 points





The following accounts are from last year's books of Sharp Manufacturing: 

Raw Materials Bal (a) 

Work In Process

0 (b) 166,500  11,500

155,000 

Bal  (b)  (c) (e) 

(f)

514,000

  

   



Manufacturing Overhead

Finished Goods Bal (f) 

0 132,500 169,000 212,500 0

0 (g) 514,000  49,000

465,000 

(b)  (c)  (d) 

22,500 26,500 157,000 

(e)   

212,500   6,500

Cost of Goods Sold (g)

465,000   



 

 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?

✓



$166,500



$155,000



$132,500



$169,000

The journal entry to record Issue of direct and indirect materials was entry (b) above:  

 Work in Process Manufacturing Overhead Raw Materials

 132,500 22,500

  

155,000

 Direct materials are debited to Work in Process; indirect materials are debited to Manufacturing Overhead. References Multiple Choice

Difficulty: 2 Medium

Learning Objective: 03-02 Use T-accounts to show the flow of costs in a job-order costing system.

6.

Award: 10 out of 10.00 points





The following accounts are from last year’s books at Sharp Manufacturing: 

Raw Materials Bal (a) 

Work In Process

0 (b) 171,500  14,500

157,000 

Bal  (b)  (c) (e) 

0 133,500 171,000 217,500 0

522,000    



Manufacturing Overhead

Finished Goods Bal (f) 

(f)   

0 (g) 522,000  47,000

475,000 

(b)  (c)  (d) 

23,500 27,500 159,000 

(e)   

217,500   7,500

Cost of Goods Sold (g)

475,000   



 

 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?

✓



$257,250



$467,500



$522,000



$475,000

Cost of goods manufactured is represented by the debit to Finished Goods and the credit to Work in Process (entry f) = $522,000 cost of goods manufactured References Multiple Choice

7.

Award: 10 out of 10.00 points

Difficulty: 1 Easy

Learning Objective: 03-02 Use T-accounts to show the flow of costs in a job-order costing system. 



Compute the amount of raw materials used during November if $38,000 of raw materials were purchased during the month and if the inventories were as follows:  Inventories Raw materials Work in process Finished goods

✓



$39,500



$39,100



$36,600



$42,600

Balance November 1 $10,200 $ 7,600 $ 11,600

  

Balance November 30 $ 5,600 $ 9,100 $13,600

  

Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials – Ending raw materials inventory Raw materials used in production = $10,200 + $38,000 – $5,600 = $42,600 References Multiple Choice

Difficulty: 1 Easy

Learning Objective: 03-02 Use T-accounts to show the flow of costs in a job-order costing system.

8.

Award: 10 out of 10.00 points





Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $71,000 and at the end of the month was $31,900. The cost of goods manufactured for the month was $221,500. The actual manufacturing overhead cost incurred was $60,700 and the manufacturing overhead cost applied to Work in Process was $65,600. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is: ✓



$255,700



$182,400



$260,600



$221,500

Manufacturing overhead underapplied (overapplied) = Actual manufacturing overhead incurred – Manufacturing overhead applied = $60,700 – $65,600 = $4,900 overapplied Adjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured – Ending finished goods inventory – Manufacturing overhead overapplied = $71,000 + $221,500 – $31,900 – $4,900 = $255,700 References Multiple Choice

9.

Award: 10 out of 10.00 points

Difficulty: 2 Medium

Learning Objective: 03-03 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. 



Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $38,000 at the beginning of the month and $25,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $58,200 and direct labor cost of $32,800. The actual manufacturing overhead cost incurred was $54,600. The manufacturing overhead cost applied to Work in Process was $54,200. The cost of goods manufactured for June was:  Garrison 16e Rechecks 2017-09-15

✓



$158,600.



$158,200.



$145,200.



$145,600.

Cost of goods manufactured = Direct materials + Direct labor + Manufacturing overhead applied + Beginning work in process inventory – Ending work in process inventory = $58,200 + $32,800 + $54,200 + $38,000 – $25,000 = $158,200 References Multiple Choice

Difficulty: 2 Medium

Learning Objective: 03-03 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement.

10.

Award: 10 out of 10.00 points





Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $21,000 and the ending balance was $38,000. Raw materials purchases during the month totaled $65,000. Manufacturing overhead cost incurred during the month was $112,000, of which $2,200 consisted of raw materials classified as indirect materials. The direct materials cost for May was:

✓



$65,000



$48,000



$82,000



$45,800

Direct materials cost = Beginning raw materials inventory + Raw materials purchases – Ending raw materials – Indirect materials = $21,000 + $65,000 – $38,000 – $2,200 = $45,800 References Multiple Choice

11.

Award: 10 out of 10.00 points

Difficulty: 2 Medium

Learning Objective: 03-03 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. 



Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,040 hours and the total estimated manufacturing overhead was $555,408. At the end of the year, actual direct labor-hours for the year were 21,700 hours and the actual manufacturing overhead for the year was $555,408. Overhead at the end of the year was:

✓



$8,618 overapplied



$8,618 underapplied



$8,568 underapplied



$8,568 overapplied

Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $555,408 ÷ 22,040 direct labor-hours = $25.20 per direct labor-hour  Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred = $25.20 per direct labor-hour × 21,700 direct labor-hours = $546,840  Overhead over or underapplied   Actual manufacturing overhead incurred Manufacturing overhead applied to Work in Process

  $ 555,408  546,840

Underapplied (overapplied) manufacturing overhead

$

8,568

 References Multiple Choice

Difficulty: 2 Medium

Learning Objective: 03-04 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts.

12.

Award: 10 out of 10.00 points





At the beginning of the year, manufacturing overhead for the year was estimated to be $689,325. At the end of the year, actual direct labor-hours for the year were 36,210 hours, the actual manufacturing overhead for the year was $681,000, and manufacturing overhead for the year was overapplied by $25,095. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: (Do not round intermediate calculation.)

✓



34,923 direct labor-hours



35,350 direct labor-hours



36,210 direct labor-hours



33,636 direct labor-hours

Underapplied (overapplied) manufacturing overhead = Actual manufacturing overhead – Manufacturing overhead applied −$25,095 = $681,000 – Overhead applied Manufacturing overhead applied = $681,000 + $25,095 = $706,095  Manufacturing overhead applied = Predetermined overhead rate × Actual direct labor-hours Predetermined overhead rate = Manufacturing overhead applied ÷ Actual direct labor-hours = $706,095 ÷ 36,210 direct labor-hours = $19.50 per direct labor-hour  Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated direct labor-hours Estimated direct labor-hours = Estimated total manufacturing overhead ÷ Predetermined overhead rate = $689,325 ÷ $19.50 per direct labor-hour = 35,350 direct labor-hours References Multiple Choice

Difficulty: 3 Hard

Learning Objective: 03-04 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts.

13.





Award: 10 out of 10.00 points

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

Work In Finished Cost of Process Goods Goods Sold Total $ 4,240  $ 14,740  $ 41,660  $ 60,640   10,000   29,480   83,880   123,360   5,860   11,020   35,060   51,940 

Total

$ 20,100  $ 55,240  $



160,600  $ 235,940 

 Manufacturing overhead for the month was overapplied by $4,300. The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts. The work in process inventory at the end of March after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: Round intermediate percentage computations to the nearest whole percent.)  Garrison 16e Rechecks 2017-08-28

✓



$19,698



$20,216



$20,287



$19,627

Ending work in process inventory after allocation of overapplied manufacturing overhead = $20,100 − [($5,860/$51,940) × $4,300] = $20,100 − (11% × $4,300) = $19,627 References Multiple Choice

Difficulty: 2 Medium

Learning Objective: 03-04 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts.

14.





Award: 10 out of 10.00 points

Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $365,280. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $9,200, and the actual manufacturing overhead was $362,560. The predetermined overhead rate for the year must have been closest to:  Garrison 16e Rechecks 2017-08-28

✓



$15.62 per direct labor-hour



$15.49 per direct labor-hour



$15.22 per direct labor-hour



$15.11 per direct labor-hour

Underapplied (overapplied) manufacturing overhead = Actual manufacturing overhead – Manufacturing overhead applied Manufacturing overhead applied = Actual manufacturing overhead + Overapplied manufacturing overhead = $362,560 + $9,200 = $371,760  Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $371,760 ÷ 24,000 direct labor-hours = $15.49 per direct labor-hour References Multiple Choice

15.

Difficulty: 3 Hard

Learning Objective: 03-04 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. 



Award: 10 out of 10.00 points

Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,250 actual direct labor-hours and incurred $402,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 60,500 direct labor-hours during the year and incur $363,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

✓



overapplied by $58,500



underapplied by $58,500



overapplied by $39,000



underapplied by $39,000

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $363,000 ÷ 60,500 direct labor-hours = $6.00 per direct labor-hour  Overhead over or underapplied   Actual manufacturing overhead incurred Manufacturing overhead applied to Work in Process: Predetermined overhead rate (a...