Question : 91. M.A.E. charged the following amounts of overhead to jobs during : 1225458

91. M.A.E. charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process, $60,000 to jobs completed but not sold, and $120,000 to jobs finished and sold. At year-end, M.A.E. Company’s Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should M.A.E. make at year-end? 

A. No entry is needed.

B. Debit Factory Overhead $5,000; credit Cost of Goods Sold $5,000.

C. Debit Cost of Goods Sold $5,000; credit Factory Overhead $5,000.

D. Debit Factory Overhead $5,000; credit Goods in Process Inventory $5,000.

E. Debit Factory Overhead $5,000; credit Finished Goods Inventory $5,000.

92. Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include: 

A. A debit to Cost of Goods Sold for $600.

B. A credit to Factory Overhead for $600.

C. A credit to Finished Goods Inventory for $600.

D. A debit to Goods in Process Inventory for $600.

E. A credit to Cost of Goods Sold for $600.

93. If it is a material amount, overapplied or underapplied overhead should be disposed of by allocating it to: 

A. Cost of goods sold and finished goods inventory.

B. Finished goods inventory and goods in process inventory.

C. Goods in process inventory, finished goods inventory, and cost of goods sold.

D. Goods in process inventory.

E. Raw materials inventory, goods in process inventory, and finished goods inventory.

94. The Dina Corp. has applied overhead to jobs during the period as follows:

The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account, and this amount is not material. The entry to dispose of this remaining factory overhead balance is: 

A. Debit Cost of Goods Sold $5,600; credit Factory Overhead $5,600.

B. Debit Factory Overhead $5,600; credit Cost of Goods Sold $5,600.

C. Debit Factory Overhead $5,600; credit Goods in Process Inventory $5,600.

D. Debit Goods in Process Inventory $5,600; credit Factory Overhead $5,600.

E. No entry is needed.

95. Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record the purchase of materials is: 

A. Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000.

B. Debit Goods in Process Inventory $198,000; credit Accounts Payable $198,000.

C. Debit Raw Materials Inventory $198,000; credit Goods in Process Inventory $198,000.

D. Debit Goods in Process Inventory $195,000; credit Raw Materials Inventory $195,000.

E. Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000.

96. Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record the issuance of materials to production is: 

A. Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000.

B. Debit Goods in Process Inventory $195,000; credit Raw Materials Inventory $195,000.

C. Debit Raw Materials Inventory $195,000; credit Goods in Process Inventory $195,000.

D. Debit Goods in Process Inventory $165,000; debit Factory Overhead $30,000; credit Raw Materials Inventory $195,000.

E. Debit Finished Goods Inventory $195,000; credit Raw Materials Inventory $195,000.

97. Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record payment of the factory payroll is: 

A. Debit Goods in Process Inventory $150,000; credit Factory Payroll $150,000.

B. Debit Goods in Process Inventory $150,000; credit Cash $150,000.

C. Debit Factory Payroll $150,000; credit Cash $150,000.

D. Debit Goods in Process Inventory $110,000; debit Factory Overhead $40,000; credit Factory Payroll $150,000.

E. Debit Goods in Process Inventory $110,000; debit Factory Overhead $40,000; credit Cash $150,000.

98. Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record the allocation of the factory payroll to production is: 

A. Debit Goods in Process Inventory $150,000; credit Factory Payroll $150,000.

B. Debit Goods in Process Inventory $150,000; credit Cash $150,000.

C. Debit Factory Payroll $150,000; credit Cash $150,000.

D. Debit Goods in Process Inventory $110,000; debit Factory Overhead $40,000; credit Factory Payroll $150,000.

E. Debit Goods in Process Inventory $110,000; debit Factory Overhead $40,000; credit Cash $150,000.

99. Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record the application of factory overhead to production is: 

A. Debit Goods in Process Inventory $225,000; credit Factory Overhead $225,000.

B. Debit Goods in Process Inventory $165,000; credit Factory Overhead $165,000.

C. Debit Factory Payroll $150,000; credit Goods in Process Inventory $150,000.

D. Debit Factory Overhead $165,000; credit Goods in Process Inventory $165,000.

E. Debit Goods in Process Inventory $165,000; credit Factory Payroll $165,000.

100. Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The total manufacturing costs added during the period are: 

A. $440,000.

B. $470,000.

C. $500,000.

D. $570,000.

E. $540,000.