6. The Work in Process Inventory account of a manufacturing company that uses an overhead rate based ondirect labor cost has a $3,200 debit balance after all posting is completed. The cost sheet of the one job still inprocess shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of theapplied overhead is:7. The Work in Process Inventory account of a manufacturing company that uses an overhead rate based ondirect labor cost has a $4,400 debit balance after all posting is completed. The cost sheet of the one jobstill in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, thecompany's overhead application rate is:8.When factory payroll costs for labor are allocated in a job cost accounting system:A. Factory Payroll is debited and Work in Process Inventory is credited.B. Work in Process Inventory and Factory Overhead are debited and Factory Payroll is credited.C. Cost of Goods Manufactured is debited and Direct Labor is credited.D. Direct Labor and Indirect Labor are debited and Factory Payroll is credited.E. Work in Process Inventory is debited and Factory Payroll is credited.9. Oxford Company uses a job order costing system. In the last month, the system accumulated labor timetickets total $24,600 for direct labor and $4,300 for indirect labor. These costs were accumulated in FactoryPayroll as they were paid. Which entry should Oxford make to assign the Factory Payroll?A. Debit Payroll Expense $28,900; credit Cash $28,900.B. Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900.C. Debit Work in Process Inventory $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900.D. Debit Work in Process Inventory $24,600; debit Factory Overhead $4,300; credit Wages Payable $28,900.E. Debit Work in Process Inventory $28,900; credit Factory Payroll $28,900.10. Labor costs in production can be:A. Direct or indirect.B. Indirect or sunk.C. Direct or payroll.D. Indirect or payroll.E. Direct or sunk.11. An example of direct labor cost is:A. Supervisor salaryB. Maintenance worker wagesC. Janitor wagesD. Product assembler wagesE. Accountant salary

Applied overhead is the fixed percentage of overhead that has been incurred by the company.

6. The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,200 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of the applied overhead is:

6. The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,200 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of the applied overhead is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

s
Rundle Company and Rooney Company assign manufacturing overhead to Work in Process Inventory using direct labor cost. The following information is available for the companies for the year. Actual direct labor cost Estimated direct labor cost. Actual manufacturing overhead cost Estimated manufacturing overhead cost Rundle Company $ 148,000 153,000 Rundle Company Rooney Company 55,600 74,970 Required a. Compute the predetermined overhead rate for each company. b. Determine the amount of overhead cost that would be applied to Work in Process Inventory for each company. c. Compute the amount of overapplied or underapplied manufacturing overhead cost for each company. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the predetermined overhead rate for each company. Note: Round your answers to 2 decimal places. Predetermined Overhead direct labor dollar direct labor dollar Rooney Company $ 173,000 105,000 91,100 90,300
d Jason's Custom Tooling (JCT) uses a job order cost system and applies overhead using a predetermined overhead rate based on direct labor costs. The following debits (credits) appeared in Work-in-Process Inventory for November: November 1 For the month For the month For the month For the month Description Balance Direct materials Direct labor Factory overhead To finished goods Amount $ 43,000 235,000 144,000 136,800 (419,000) Job 13-11, the only job still in process at the end of November, has been charged direct labor of $30,000. Required: What cost amount of direct materials was charged to Job 13-11? Direct materials $ 80,800 x
Please show your work.
Manufacturing cost data for Bonita Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to O decimal places, eg. 5,275.) Case A Case B Direct materials used $ (a) $86,500 Direct labor 55,000 149,700 Manufacturing overhead applied 44,000 Total manufacturing costs 152,150 Work in process 1/1/22 Total cost of work in process 207,100 Work in process 12/31/22 Cost of goods manufactured 196,200 (b) 24,000 (c) 14,900 (d) Case C $64,150 (e) 214,000 (f) 18,600 (g) 229,700 (h) (i) (j) (k)
The Work in Process inventory account of Ninetales Publishing Inc shows a total manufacturing cost of $20,000 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $6,000 and $5,000 for materials, and charges of $2,000 and $4,000 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of %.
The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $7,200 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $3,400 and direct labor cost of $1,150. What is the company's overhead application rate?
6. True or False: When two processes are needed, the cost of finished units in Process #1 is transferred to Process #2 by debiting the Work-in-Process Inventory #1 account and crediting the Work-in-Process Inventory #2 account. 7. True or False: At the end of the accounting period, the total of all job cost sheets related to unfinished jobs will equal the ending balance in the Work-in-Process Inventory account. 8. True or False: Under process costing, the manager for Process #4 (in a multi-process production operation) cannot control the amount of Transferred-In Costs assigned to him/her from earlier processes, but it still held responsible for those costs, and they will be part of the Cost of Production Report for Process #4. 9. True or False: When a job has been completed, all of the costs assigned on the job's job cost sheet are moved to the Finished Goods Inventory account. 10. True or False: It is difficult to trace costs to individual products in a continuous flow manufacturing…
The GA-42334 company uses direct labor cost as its allocation base for its predetermined overhead rate. The company reports $ 2,025 for the ending balance of its work in procęss inventory. The company has two incomplete products that respectively used $ 500 and $ 300 of direct materials, and $ 400 and $ 100 of direct labor. Using these facts, what is the GA-42334 company's predetermined overhead rate as a percentage of direct labor cost? Multiple Choice 135 % 150 % 145 % 155 %
[The following information applies to the questions displayed below.] Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost. Cost flows through the Work in Process Inventory account during March are given below: Work in Process Beginning Balance 0 Transferred Out 224,500 Direct Materials 56,000 Direct Labor 99,000 Overhead 148,500 Ending Balance 79,000 Only Job #007 was still in process at the end of March and this job had been charged with $26,000 in direct materials cost. The amount of direct materials cost charged to completed jobs during March was: Multiple Choice
The following information pertains to Thornton Manufacturing Company for March Year 3. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials Work in process Finished goods March 31 Inventory balances Raw materials Work in process Finished goods During March Costs of raw materials purchased Costs of direct labor Costs of manufacturing overhead Sales revenues Required A Required B Required a. Prepare a schedule of cost of goods manufactured and sold. b. Calculate the amount of gross margin on the income statement. $ 124,100 118,300 76,300 Complete this question by entering your answers in the tabs below. $ 85,400 145,700 80,500 Raw materials available for use $ 118,500 100,800 61, 600 356,000 Prepare a schedule of cost of goods manufactured and sold. Direct raw materials used THORNTON MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold For March Year 3 Total manufacturing costs 0 0 0
Watson Company has the following data: Work in process inventory, beginning Work in process inventory, ending Direct labor costs incurred Cost of goods manufactured Factory overhead Determine the amount of direct materials used. $18,000 25,000 5,000 9,000 7,000