Homework SourseQUESTION 1 Match the correct answer to the question Each opt
QUESTION 1
Match the correct answer to the question. Each option may be used more than once.
When would Cost of Goods Sold be debited?
When would Manufacturing Overhead be debited?
When would Finished Goods be debited?
When would Manufacturing Overhead be credited?
When would Finished Goods be credited?
to record actual indirect labor, actual indirect materials, rent or accumulated depreciation on the plant, actual utility expense incurred.
when goods are finished.
when good are sold.
to apply overhead to production
QUESTION 2
What is the required journal entry when $1,000 of wood is used to build a bookcase? To receive full credit ALWAYS give ALL journal entries in proper form. See Hints/FAQ tab on Blackboard. Hint: Ask what kind of cost it is (period or product? If product: DM, DL, indirect? and then decide how it is treated)
QUESTION 3
What is the required entry to record $700 of wages for the supervisor to the carpenter of the above bookcase? Hint: Ask what kind of cost it is (period or product? If product: DM, DL, indirect? and then decide how it is treated)
QUESTION 4
Give the entry for $50 worth of glue used to make the above bookcase. Hint: Ask what kind of cost it is (period or product? If product: DM, DL, indirect? and then decide how it is treated)
QUESTION 5
What is the entry to record $500 of wages for the carpenter of the bookcase? Hint: Ask what kind of cost it is (period or product? If product: DM, DL, indirect? and then decide how it is treated)
QUESTION 6
Give the entry to record the $200 wages for the bookkeeper that handles accounting for the bookcases. Hint: Ask what kind of cost it is (period or product? If product: DM, DL, indirect? and then decide how it is treated)
QUESTION 7
If actual indirect costs were $600 but our predetermined rate says we should apply $500 what is the required entry to apply overhead to the job? Hint: It is NOT asking you to close any over/underapplied overhead at this time.
QUESTION 8
Give the entry to record the completion of a bookcase which required $1,850 in costs (DM, DL, applied MOH).
QUESTION 9
If a job consisting of 30 units requires Direct Labor of $600, Direct Materials of $400, Manufacturing Overhead of $200, Marketing costs of $100, what is the total product cost?
QUESTION 10
If a job consisting of 30 units requires Direct Labor of $600, Direct Materials of $400, Manufacturing Overhead of $200, Marketing costs of $100, what is the unit product cost?
QUESTION 11
Match the correct answer to each question. Each option may be used more than once or not at all.
What do we call the total costs debited to Finished Goods?
What do we call the total cost credited to Work-in-Process
What do we call total cost debited to Cost of Goods Sold?
What do we call total cost credited to Finished Goods?
Cost of Goods Manufactured
Cost of Finished Goods
Cost of Goods Sold
1 points
QUESTION 12
Barron Corp uses a normal job-order costing system with overhead applied to products on the basis of direct labor hours. For the upcoming year, Barron Corp estimated total manufacturing overhead cost at $250,000 and total direct labor hours of 50,000. During the year actual overhead incurred was $262,500 and 51,000 direct labor hours were used.
Calculate the predetermined overhead rate.
QUESTION 13
What journal entry would Barron Corp require to apply overhead to production?
QUESTION 14
Is overhead for Barron Corp. over or underapplied? By how much? (give numeric answer as negative for underapplied and positive for overapplied)
QUESTION 15
The result of #7 on the Manufacturing Overhead account, would also ultimately (over/understate) the account. Do NOT answer Manufacturing Overhead account or Work-in-process.
QUESTION 16
What journal entry would Barron Corp. require to close manufacturing overhead?
QUESTION 17
Match the correct answer to each question. Each option may be used more than once or not at all. Hint: first determine whether an account is an expense or inventory account and then consider the different treatment of expenses vs. assets (inventory).
Finished Goods
Work-in-Process
Cost of Goods Sold
Raw Materials
expenses all materials used both direct and indirect.
is an inventory account of raw materials both direct and indirect.
expenses the cost of partially completed goods sold.
is an inventory account of partially completed goods.
expenses the cost of goods that are finished and waiting in inventory.
is an inventory account of goods that are completed
is an expense account of the cost of items sold.
is an inventory account of items that are sold.
QUESTION 18
Joel Inc. has the following information for year 20X1:
Beginning inventory Ending inventory
Raw Material inventory $40,000 $30,000
Work-in-Process inventory $35,000 $18,000
Finished Goods inventory $30,000 $40,000
Additional information for the year is as follows:
Raw materials purchases: $200,000
Direct labor: $150,000
Manufacturing overhead costs: $160,000
Compute the cost of goods manufactured.
QUESTION 19
Compute the cost of goods sold for Joel Inc.
|
|
Solution
Solution1:
i. Cost of goods sold is debited when goods are sold. Amount of cost of goods sold debited by crediting inventory. Therefore C is perfect match.
ii. Manudacturing overheads are debited at the time of incurring actual expenditure. Therefore manufacturing overhead is debited to record actual indirect labor, actual indirect materials, rent or accumulated depreciation on the plant, actual utility expense incurred. Hence A is perfect match.
iii.Finish goods are debited when goods are finished and transferred from WIP to finish goods inventory. Therefore B is the perfect match.
iv. Manufacturing overhead is credited when they were applied to production. In this case cost of manufacturing overhead transferred to WIP. Hence D is the perfect match.
v. Finished goods are credited when goods are sold as it reduced the finish goods inventory of organization. Therefore C is perfect match.
