9. The BAM Manufacturing Co. uses a job-order costing system, and it applies factory overhead to production at a pre-determined rate based on direct labor cost. The following account appears in the general ledger: WORK IN PROCESS P 50,000 Finished goods P250,900 Beg. Bal Direct Materials 100,000 Direct Labor Applied overhead 80,000 60,000 The ending work in process represents the cost of Job# 26 which has been charged with P6,000 of direct labor and the cost of Job # 27 which has been charged with applied factory overhead of P4,800. Total cost of direct materials in the ending work in process was A. P8,400 B. P9,000 C. P15,200 D. P17,400
9. The BAM Manufacturing Co. uses a job-order costing system, and it applies factory overhead to production at a pre-determined rate based on direct labor cost. The following account appears in the general ledger: WORK IN PROCESS P 50,000 Finished goods P250,900 Beg. Bal Direct Materials 100,000 Direct Labor Applied overhead 80,000 60,000 The ending work in process represents the cost of Job# 26 which has been charged with P6,000 of direct labor and the cost of Job # 27 which has been charged with applied factory overhead of P4,800. Total cost of direct materials in the ending work in process was A. P8,400 B. P9,000 C. P15,200 D. P17,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:9. The BAM Manufacturing Co. uses a job-order costing system, and it applies factory overhead to production at a
pre-determined rate based on direct labor cost. The following account appears in the general ledger:
WORK IN PROCESS
P 50,000 Finished goods P250,900
Beg. Bal
Direct Materials 100,000
Direct Labor
80,000
60,000
Applied overhead
The ending work in process represents the cost of Job# 26 which has been charged with P6,000 of direct labor
and the cost of Job # 27 which has been charged with applied factory overhead of P4,800. Total cost of direct
materials in the ending work in process was
A. P8,400
B. P9,000
C. P15,200
D. P17,400
10. A company had the following total usage of direct labor and direct materials
Hours
400
Pounds
Direct Labor (P8 per hour)
Direct Materials (PI0 per pound)
300
Incomplete job # 101 has used 20 hours of direct labor and 8 pounds of direct materials. Factory overhead is
applied at the rate of 200% per direct labor peso. What is the balance in work in process relating to job # 101
A. P560 debit
B. P560 credit
C. P12,600 debit
D. P12,600 credit
11. Hamilton Company uses job order costing' Factory overhead is applied to production at a determined rate of
150% of direct-labor cost. Any over or underapplied factory overhead is closed to the cost of goods sold
account at the end of each month. Additional information is available as follows:
Job 101 was the only job in process at January 31, 2011, with accumulated costs as follows:
P4,000
2,000
3,000
9.000
Jobs 102, 103 and 104 were started during February
Direct materials requisitions for February totaled P26,000
Direct-labor cost of P20,000 was incurred for February
Actual factory overhead was P32,000 for February
Direct materials
Direct labor
Applied factory overhead
The only job still in process at February 28, 2011 was Job 104, with costs of P2,800 for direct materials
and P1,800 for direct labor
The cost of goods manufactured for February 2011 was
C. P79,700
A. P77,700
B. P78,000
D. P85,000
12. Using the same information in No. 11, any over or under-applied factory overhead should be closed to the cost
of goods sold account at February 28, 2011, in the amount of
A. P700 overapplied B. P1,000 overapplied
C. P1,700 underapplied
D. P2,000 underapplied
Use the following information for questions 13-15.
Ark Co. uses a job order costing system. At the beginning of January, the company had 2 jobs in
process with the following costs:
Direct Labor
$510
289
Ark pays its workers $8.50 per hour and applies overhead on a direct labor hour basis.
Direct Material
$3,400
1,100
Job # 456
Overhead
$255
Job #461
13. What is the overhead application rate per direct labor hour?
$0.50
$2.00
$4.25
$30.00
b.
d.
14. How much overhead was included in the cost of Job #461 at the beginning of January?
$2,200.00
$2,456.50
a.
$144.50
b.
$153.00
d.
15. During January, Ark employees worked on Job #479. At the end of the month, $714 of overhead had been
applied to this job. Total Work in Process Inventory at the end of the month was $6,800 and all other jobs had a
total cost of $3,981. What amount of direct material is included in Job #479?
$677
$1,391
$2,142
$4,658
а.
C.
b.
d.
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