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Albany Company uses a job-order costing system and applies manufacturing overhead (MOH) based on direct labor cost (DLC). At the beginning of July, the following information was estimated: Estimated MOH $ 340,000 Estimated DLC $ 425,000 Partial activity posted during the month of July is shown in the T-accounts below: Raw Materials (All Direct) Work in Process Beg Bal $ 72,500 Beg Bal $ 73,000 Purchases 142,000 DM Used End Bal $ 69,450 Actual DLC 418,000 МОН End Bal $ 75,000 Manufacturing Overhead Finished Goods Actual Applied Beg Bal $ 3,000 COGM 2$ 316,250 End Bal $ 4,500 15 Cost of Goods Manufactured (COGM) for the month of July was: $ 892,400 $ 897,450 А. В. С. $ 877,300 D. $ 895,450 E. None of the above

Albany Company uses a job-order costing system and applies manufacturing overhead (MOH) based on direct labor cost (DLC). At the beginning of July, the following information was estimated: Estimated MOH $ 340,000 Estimated DLC $ 425,000 Partial activity posted during the month of July is shown in the T-accounts below: Raw Materials (All Direct) Work in Process Beg Bal $ 72,500 Beg Bal $ 73,000 Purchases 142,000 DM Used End Bal $ 69,450 Actual DLC 418,000 МОН End Bal $ 75,000 Manufacturing Overhead Finished Goods Actual Applied Beg Bal $ 3,000 COGM 2$ 316,250 End Bal $ 4,500 15 Cost of Goods Manufactured (COGM) for the month of July was: $ 892,400 $ 897,450 А. В. С. $ 877,300 D. $ 895,450 E. None of the above

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Job-Order Costing System and Manufacturing Overhead Application** Albany Company uses a job-order costing system and applies manufacturing overhead (MOH) based on direct labor cost (DLC). At the beginning of July, the following information was estimated: - Estimated MOH: $340,000 - Estimated DLC: $425,000 **T-Accounts for July Activity** 1. **Raw Materials (All Direct)** - Beginning Balance: $72,500 - Purchases: $142,000 - Ending Balance: $69,450 - Direct Materials (DM) Used: ? 2. **Work in Process** - Beginning Balance: $73,000 - DM Used: ? - Actual DLC: $418,000 - MOH: ? - Ending Balance: $75,000 3. **Manufacturing Overhead** - Actual: $316,250 - Applied: ? 4. **Finished Goods** - Beginning Balance: $3,000 - Cost of Goods Manufactured (COGM): ? - Ending Balance: $4,500 **Multiple-Choice Question:** 15. Cost of Goods Manufactured (COGM) for the month of July was: - A. $892,400 - B. $897,450 - C. $877,300 - D. $895,450 - E. None of the above 16. Reno Company has calculated that their break-even quantity is 60,000 units. They also estimated that the contribution per unit of their product is $8.00. Last quarter, they reported a loss of $10,000. How many units did they sell? Choose the closest number. - A. 50,000 units - B. 58,000 units - C. 58,750 units - D. 61,250 units - E. None of the above **Explanation of Diagrams:** The T-accounts diagram illustrates the flow of costs through various stages of production. Raw material purchases and usage are recorded in the Raw Materials account, while direct labor and overhead costs are tracked in the Work in Process account. The Manufacturing Overhead account compares actual overhead to the applied overhead, which impacts the final assessment of Cost of Goods Manufactured. The Finished Goods account shows the transition from work in process
Transcribed Image Text:**Job-Order Costing System and Manufacturing Overhead Application** Albany Company uses a job-order costing system and applies manufacturing overhead (MOH) based on direct labor cost (DLC). At the beginning of July, the following information was estimated: - Estimated MOH: $340,000 - Estimated DLC: $425,000 **T-Accounts for July Activity** 1. **Raw Materials (All Direct)** - Beginning Balance: $72,500 - Purchases: $142,000 - Ending Balance: $69,450 - Direct Materials (DM) Used: ? 2. **Work in Process** - Beginning Balance: $73,000 - DM Used: ? - Actual DLC: $418,000 - MOH: ? - Ending Balance: $75,000 3. **Manufacturing Overhead** - Actual: $316,250 - Applied: ? 4. **Finished Goods** - Beginning Balance: $3,000 - Cost of Goods Manufactured (COGM): ? - Ending Balance: $4,500 **Multiple-Choice Question:** 15. Cost of Goods Manufactured (COGM) for the month of July was: - A. $892,400 - B. $897,450 - C. $877,300 - D. $895,450 - E. None of the above 16. Reno Company has calculated that their break-even quantity is 60,000 units. They also estimated that the contribution per unit of their product is $8.00. Last quarter, they reported a loss of $10,000. How many units did they sell? Choose the closest number. - A. 50,000 units - B. 58,000 units - C. 58,750 units - D. 61,250 units - E. None of the above **Explanation of Diagrams:** The T-accounts diagram illustrates the flow of costs through various stages of production. Raw material purchases and usage are recorded in the Raw Materials account, while direct labor and overhead costs are tracked in the Work in Process account. The Manufacturing Overhead account compares actual overhead to the applied overhead, which impacts the final assessment of Cost of Goods Manufactured. The Finished Goods account shows the transition from work in process
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