Comet Company accumulated the following account information for the year:
Beginning raw materials inventory
Indirect materials cost
Indirect labor cost
Maintenance of factory equipment
Direct labor cost
$ 5,200
1,200
4,200
2,000
6,200
Using the above information, total factory overhead costs would be:
$13,400.
$13,600.
$6,200.
$7,400.
$10,600.
Using the information below for Singing Dolls, Inc., determine cost of goods manufactured for the year:
Work in Process, January 1
Work in Process, December 31
Total Factory overhead
Direct materials used
Direct labor used
$61,100.
$47,200.
$99,000.
$54,700.
$13,900.
$51,800
37,900
6,400
13,400
27,400
Using the information below for Sundar Company; determine the cost of goods manufactured during the
current year:
Direct materials used
$20,100
Direct labor used
25,600
Factory overhead
49,600
Beginning work in process
11,800
Ending work in process
12,400
$95,300.
$45,700.
$94,700.
$45,100.
$74,600.
Use the following data to compute total factory overhead costs for the month.
Sales commissions
$12,300
Direct labor
41,100
Indirect materials
16,700
Factory manager salaries
Factory supplies
8,700
10,500
Indirect labor
7,800
Depreciation—office equipment
6,500
Direct materials
42,000
Corporate office salaries
44,000
Depreciation—factory equipment
9,000
$154,600.
$135,800.
$52,700.
$93,800.
$62,800.
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation
requisitioned $2,200 of direct materials and used $3,700 of direct labor. The job was not finished by the end of the
month, but needed an additional $2,700 of direct materials and additional direct labor of $5,900 to finish the job in
October. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost incurred.
What is the balance in the Work in Process account at the end of September relative to Job A3B?
$8,600
$11,450
$4,900
$9,600
$5,900
The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and
transferred to Finished Goods Inventory.
Work in Process Inventory
DR
Beginning balance
$5,600
Direct materials
48,200
Direct labor
30,700
Applied overhead
16,900
Ending balance
CR
?
Finished goods
$11,100
The cost of units transferred to finished goods is:
$90,300.
$95,800.
$112,500.
$99,600.
$101,400.
Kayak Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Kayak
Company's production costs for the year were: direct labor, $31,000; direct materials, $51,000; and factory
overhead applied $6,100. The overhead application rate was:
5.08%.
11.96%.
19.68%.
508.20%.
16.45%.
The B&T Company's production costs for May are: direct labor, $14,000; indirect labor, $6,600; direct materials,
$15,100; property taxes on production equipment, $810; heat, lights and power, $1,010; and insurance on plant and
equipment, $210. B&T Company's factory overhead incurred for May is:
$2,030.
$37,730.
$6,600.
$8,630.
$21,700.
Wilturner Company incurs $76,000 of labor related directly to the product in the Assembly Department, $25,000 of
labor not directly related to the product but related to the Assembly Department as a whole, and $12,000 of labor
for services that help production in both the Assembly and Finishing departments. The amount of direct labor and
factory overhead respectively are:
$76,000 and $37,000.
$101,000 and $12,000.
$88,000 and $25,000.
$113,000 and $0.
$76,000 and $12,000.
Wilturner Company incurs $84,000 of labor related directly to the product in the Assembly Department, $33,000 of
labor not directly related to the product but related to the Assembly Department as a whole, and $20,000 of labor
for services that help production in both the Assembly and Finishing departments. The journal entries to record the
labor would include:
Debit Work in Process Inventory $84,000; debit Factory Overhead $53,000.
Debit Work in Process Inventory $84,000; debit Wages Expense $53,000.
Debit Work in Process Inventory $117,000; debit Wages Expense $20,000.
Debit Work in Process Inventory $137,000.
Debit Work in Process Inventory $117,000; debit Factory Overhead $20,000.
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations
for June. The journal entry to record June production activities for direct labor usage is:
Direct materials used
$93,000
Direct labor used
166,000
Predetermined overhead rate (based on direct labor)
150%
Goods transferred to finished goods
438,000
Cost of goods sold
450,000
Credit sales
816,000
Debit Factory Payroll Payable $166,000; credit Cash $166,000.
Debit Work in Process Inventory $166,000; credit Factory Payroll Payable $166,000.
Debit Cost of Goods Sold $166,000; credit Factory Payroll Payable $166,000.
Debit Work in Process Inventory $166,000; credit Raw Materials Inventory $166,000.
Debit Work in Process Inventory $166,000; credit Cash $166,000.
During March, the production department of a process operations system completed and transferred to finished
goods 29,000 units that were in process at the beginning of March and 190,000 units that were started and
completed in March. March's beginning inventory units were 100% complete with respect to materials and 63%
complete with respect to conversion. At the end of March, 38,000 additional units were in process in the production
department and were 100% complete with respect to materials and 38% complete with respect to conversion.
Compute the number of physical units transferred to finished goods.
185,000.
257,000.
190,000.
219,000.
232,000.
Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be
packaged. Next year's expected costs and activities are shown below.
Mixing
Baking
416,000
DLH
96,000
DLH
Machine hours
816,000 MH
816,000
MH
Overhead costs
$665,600
$416,000
Direct labor
hours
0
Required information
Compute Aztec's departmental overhead rate for the baking department based on direct labor hours.
$4.33 per DLH
$1.60 per DLH
$0.82 per DLH
$0.51 per DLH
$2.11 per DLH
Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes
two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the
following table:
Molding
Finishing
Direct labor
hours
94,000 DLH 179,500 DLH
Machine hours
117,000 MH 100,500 MH
0
Required information
Tarnish Industries uses departmental overhead rates and is planning on a $3 per direct labor hour overhead rate for
the molding department. Compute the estimated manufacturing overhead cost for the molding department given the
information shown in the table.
$376,000
$351,000
$282,000
$538,500
$820,500
Tarnish Industries uses departmental overhead rates and is planning on a $3.70 per direct labor hour overhead rate
for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department
given the information shown in the table.
$25,405
$664,150
$748,800
$371,850
$804,750
16.
value:
5.00 points
Required information
Tarnish Industries uses departmental overhead rates and is planning on a $3.90 per machine hour overhead rate for
the molding department. Compute the estimated manufacturing overhead cost for the molding department given the
information shown in the table.
$455,300
$456,300
$391,950
$371,850
$1,066,650
17If a firm's forecasted sales are $240,000 and its break-even sales are $185,000, the margin of safety in dollars is:
$55,000.
$240,000.
$185,000.
$425,000.
$23,500.
18During its most recent fiscal year, Raphael Enterprises sold 380,000 electric screwdrivers at a price of $20.40 each.
Fixed costs amounted to $1,444,000 and pretax income was $1,824,000. What amount should have been reported as
variable costs in the company's contribution margin income statement for the year in question?
$5,928,000.
$3,040,000.
$3,268,000.
$7,752,000.
$4,484,000.
product sells for $225 per unit, and its variable costs are 64% of sales. The fixed costs are $363,600. What is the
break-even point in sales dollars? (Do not round intermediate calculations.)
$4,489.
$363,600.
$1,616.
$568,125.
$1,010,000.
20
The Goldfarb Company manufactures and sells toasters. Each toaster sells for $22.85 and the variable cost per unit
is $15.70. Goldfarb's total fixed costs are $24,100, and budgeted sales are 7,100 units. What is the contribution
margin per unit?
$7.15.
$15.70.
$22.85.
$50,765.
$1.19.