Reference no: EM132316300
Question
1) At the end of the? year, Metro, Inc. has an unadjusted credit balance in the Manufacturing Overhead account of? $820. Which of the following is the year-end adjusting entry needed to adjust the? account?
A.A debit to Cost of Goods Sold of? $820 and a credit to Manufacturing Overhead of? $820
B.A debit to Cost of Goods Sold of? $820 and a credit to Finished Goods Inventory of? $820
C.A debit to Manufacturing Overhead of? $820 and a credit to Cost of Goods Sold of? $820
D.A debit to Manufacturing Overhead of? $820 and a credit to Finished Goods Inventory of? $820
2) ?Haddows, Inc. completed Job GH6 last month. The cost details of GH6 are shown below.
Direct labor cost $2,000
Direct materials cost $ 90
Direct labor hours 5 hours
Predetermined overhead allocation rate per direct labor hour $74
Number of units of finished product 32
Calculate the cost per unit of the finished product of Job GH6.? (Round your answer to the nearest? cent.)
A.$460.00
B.$14.38
C.$74.06
D.$ 76.88
3) Adelphia Manufacturing issued $80,000 of direct materials and $9,000 of indirect materials for production. Which of the following journal entries would correctly record the? transaction?
A.Work-in-Process Inventory 89,000
Raw Materials Inventory 89,000
B.Manufacturing Overhead 89,000
Raw Materials Inventory 89,000
C.Raw Materials Inventory 89,000
Finished Goods Inventory 80,000
Work-in-Process Inventory 9,000
D.Work-in-Process Inventory 80,000
Manufacturing Overhead 9,000
Raw Materials Inventory 89,000
4) South Bay Manufacturing began business on January 1. During its first year of? operation, South Bay worked on five industrial jobs and reported the following information at year-?end:
Job 1 Job 2 Job 3 Job 4 Job 5
Direct Materials $1,000 ?$8,500? $4,000?$ 3,500? $1,500
Direct Labor $12,000? $20,100 $13,000 $12,000? $800
Allocated Mfg. Overhead? $1,700? $6,600? $2,500? $7,500? $200
Job? completed: Jun 30 Sep 1 Oct 15 Nov 1 Not completed
Job? sold: Jul 10 Sep 12 Not sold Not sold ?N/A
?Revenues: ?$39,000 ?$39,000? N/A? N/A? N/A
South? Bay's allocation of overhead costs left a debit balance of? $1,400 in the Manufacturing Overhead?account, which was adjusted to zero at year-end. What was the amount of gross profit earned during the? year?
A.?$28,100
B.?$2,400
C.$22,900
D.$26,700
5) Island Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Island has four public relations specialists and office staff. At the beginning of the?year, Island estimated the total cost of salaries and benefits for the public relations specialists at $663,000 and a total of 7,800 billable hours for the year.
The office and administrative costs were estimated at $390,000. The allocation base for office and administrative costs is billable hours. In? June, Island signed a contract for a Russian ballet performance. It negotiated a price of $6,000 for its services. When the job was?complete, Island's records showed that it had logged 37 billable hours. What was the actual total cost of the job for? Island?
A.$3,145
B.$1,295
C.$1,850
D.$ 4, 995
6) Cost accounting systems are used? ________.
A.by manufacturing? companies, not service companies
B.to accumulate and assign period costs to products
C.to accumulate product cost information
D. by stockholders for decision-making purposes
7) On June? 1, Westbrook Productions had beginning balances as shown in the T-accounts below.
Raw Materials Inventory ? 10,000
Work-in-Process Inventory 20,000
Finished Goods Inventory ?25,000
Manufacturing Overhead ?41,000
During? June, the following transactions took? place:
June? 2: Issued $2,700 of direct materials and $200 of indirect materials to production.
June? 13: Incurred $7,500 of direct factory labor cost and $14,200 of indirect factory labor cost.
What was the balance in the Manufacturing Overhead account following these? transactions?
A.$41,200
B.$55,200
C.$57,900
D.$55,400
8) Jupiter Manufacturing began business on January 1. During its first year of? operation, Jupiter worked on five industrial jobs and reported the following information at year-?end:
Job 1 Job 2 Job 3 Job 4 Job 5
Direct Materials ?$1,000 ?$7,500 ?$4,000? $3,500? $1,700
Direct Labor 12,000? 20,000 ?13,000 ?12,000 700
Allocated Mfg. Overhead?1,500? 6,000? 2,500 ?7,500 400
Job? completed: Jun 30 Sep 1 Oct 15 Nov 1 Not completed
Job? sold: Jul 10 Sep 12 Not Sold Not Sold N/A
Revenues ?$25,000 ?$39,000 ?N/A ?N/A ?N/A
What was the balance in Work-in-Process Inventory at year-?end?
A.?$2,100
B.$2,800
C.?$2,400
D.?$1,100
9) The journal entry for adjustment of underallocated manufacturing overhead includes a? ________.
A.debit to Work-in-Process Inventory
B.credit to Finished Goods Inventory
C.credit to Manufacturing Overhead
D.credit to Cost of Goods Sold
10) On January? 1, Biden,? Inc.'s Work-in-Process Inventory account had a balance of? $31,900. During the?year, $58,500 of direct materials was placed into production. Manufacturing wages incurred amounted to?$85,000, of which? $64,500 were for direct labor. Manufacturing overhead is allocated on the basis of? 120% of direct labor cost.
Actual manufacturing overhead was? $90,300. Jobs costing? $220,800 were completed during the year. What is the December 31 balance of Work-in-Process ?Inventory?
A.?$154,900
B.$31,900
C.?$11,500
D.?$232,300
11) Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on direct labor costs. The production details for the year are given? below:
Total manufacturing overhead costs estimated at the beginning of the year ?$150,000
Total direct labor costs estimated at the beginning of the year ?$340,000
Total direct labor hours estimated at the beginning of the year ?10,000 direct labor hours
Actual manufacturing overhead costs for the year ?$150,000
Actual direct labor costs for the year ?$360,000
Actual direct labor hours for the year ?11,000 direct labor hours
Calculate the manufacturing overhead allocation rate for the year based on the above data.? (Round your final answer to two decimal? places.)
A.?27.27%
B.?240.00%
C.?11.33%
D.?44.12%
12) ?Forsyth, Inc. uses estimated direct labor hours of? 245,000 and estimated manufacturing overhead costs of?$1,200,000 in establishing its predetermined overhead allocation rate for the year. Actual results showed the? following:
Actual manufacturing overhead ?$800,000
Allocated manufacturing overhead ?$825,000
The number of direct labor hours worked during the period was? ________. (Round any intermediate calculations to two decimal? places, and your final answer to the nearest whole? number.)
A.?245,000 hours
B.163,265 hours
C.?168,367 hours
D.237,575 hours
13) When a manufacturing company uses direct? materials, it assigns the cost by debiting
A.Direct Materials.
B.?Work-in-Process Inventory.
C.Manufacturing Overhead.
D.Raw Materials Inventory.
14) Brink Financial Advisors provides accounting and finance assistance to customers in the retail business. Brink has four professionals on? staff, plus an office with six clerical staff. Total? compensation, including?benefits, for the professional staff runs up to? $800,000 per? year, and normal billable hours are about? 3,300 billable hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are? $270,000.
Brink allocates office and administrative costs to clients? monthly, using a predetermined overhead allocation rate based on billable hours. During? July, Brink's professionals spent 42 hours on their? client, Waseca Sales.
Brink adds a? 30% markup on its costs to calculate the amount billed to the customer. How much gross profit did Brink earn from Waseca Sales in? July? (Round any intermediate calculations to two decimal? places, and your final answer to the nearest whole? number.)
A.?$13,618.08
B.?$3,054.492
C.$4,085
D.$3,436
15) Which of the following will be debited to the Manufacturing Overhead account of a watch? manufacturer?
A.office telephone costs
B.salaries paid to accountants
C.factory electricity costs
D.cost of printing brochures