Question : 91. The ending inventory of finished goods has a total : 1256494

 

 

91. The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?A. $3,750B. $2,000C. $4,000D. $6,000E. $9,000

 

 

 

 

 

 

 

 

 

 

 

92. The ending inventory of finished goods has a total cost of $10,000 and consists of 500 units. If the overhead applied to these goods is $2,000, and the overhead rate is 50% of direct labor, how much direct materials cost was incurred in producing these units?A. $4,000B. $6,000C. $3,000D. $7,000E. $10,000

 

 

93. A manufacturing company uses a job order cost accounting system. Overhead is applied using direct labor hours as an allocation base. Total costs for a particular job were $5,720. Of this amount $2,600 was direct labor and $1,040 was direct material. The company pays $26 per hour of direct labor and $2 per pound of direct materials. What is this company’s overhead rate?A. $26.00 per direct labor hour.B. $20.80 per direct labor hour.C. $ 4.00 per direct labor hour.D. $80.00 per direct labor hour.E. $2,080 per direct labor hour.

 

 

94. A manufacturing company uses a job order cost accounting system. Overhead is applied using pounds of direct materials used as an allocation base. Total costs for a particular job were $5,720. Of this amount $2,600 was direct labor and $1,040 was direct material. The company pays $26 per hour of direct labor and $2 per pound of direct materials. What is this company’s overhead rate?A. $2 per pound of direct material used.B. $1,040 per pound of direct material used.C. $520 per pound of direct material used. D. $4 per pound of direct material used. E. $2,080 per pound of direct material used.

 

 

 

 

 

 

 

 

 

 

 

95. At the current year-end, Hardly Company found that its overhead was underapplied by $2,500, and this amount was not deemed to be a material amount. Based on this information, Hardly should:A. Close the $2,500 to Cost of Goods Sold.B. Close the $2,500 to Finished Goods Inventory.C. Do nothing about the $2,500 since it is not material, and it is likely that overhead will be overapplied by the same amount next year. D. Carry the $2,500 to the income statement as Other Expense.E. Carry the $2,500 to the next period.

 

 

96. If overhead applied is less than actual overhead, it is:A. Fully applied.B. Underapplied.C. Overapplied.D. Expected.E. Normal.

 

 

97. The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:A. Adjusted overhead.B. Estimated overhead.C. Predetermined overhead.D. Underapplied overhead.E. Overapplied overhead.

 

 

98. The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:A. Balanced overhead.B. Predetermined overhead.C. Actual overhead.D. Underapplied overhead.E. Overapplied overhead. 

 

99. If a company applies overhead to production with a predetermined rate, a credit balance in the Factory Overhead account at the end of the period means that:A. The bookkeeper has made an error because the debits don’t equal the credits. B. The balance will be carried forward to the next period as an overhead cost.C. Actual overhead was less than the overhead amount charged to production.D. The overhead was underapplied for the period.E. Actual overhead was greater than the overhead amount charged to production.

 

 

 

 

 

 

 

 

 

 

100. 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.

Factory Overhead

5,000

 

 

Cost of Goods Sold

 

5,000

 

 

 

 

C.

Cost of Goods Sold

5,000

 

 

Factory Overhead

 

5,000

 

 

 

 

D.

Factory Overhead

5,000

 

 

Goods in Process Inventory

 

5,000

 

 

 

 

E.

Factory Overhead

5,000

 

 

Finished Goods

 

5,000

 

 

 

 

A. A B. B C. C D. D E. E

 

 

 

 

101. Overhead is applied as a percent of direct labor costs. 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.

 

 

102. Overhead is applied as a percent of direct labor costs. Estimated overhead and direct labor costs for the year were $250,000 and $125,000, respectively. During the year, actual overhead was $248,000 and actual direct labor cost was $123,000. 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 $2,000.B. A debit to Factory Overhead for $2,000.C. A credit to Finished Goods Inventory for $2,000.D. A debit to Goods in Process Inventory for $2,000.E. A credit to Cost of Goods Sold for $2,000.

 

 

 

103. A material amount of overapplied or underapplied overhead should be disposed of by allocating it to:A. Cost of goods sold and finished goods.B. Finished goods and goods in process.C. Goods in process, finished goods, and cost of goods sold.D. Goods in process.E. Raw materials, goods in process, and finished goods.

 

 

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

Jobs finished and sold

$ 46,000

Jobs started and in process

54,000

Jobs finished and unsold

100,000

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.

Cost of Goods Sold

5,600

 

 

Factory Overhead

 

5,600

 

 

 

 

B.

Factory Overhead

5,600

 

 

Cost of Goods Sold

 

5,600

 

 

 

 

C.

Factory Overhead

5,600

 

 

Goods in Process

 

5,600

 

 

 

 

D.

Goods in Process

5,600

 

 

Factory Overhead

 

5,600

 

 

 

 

E.

No entry is needed.

 

 

A. Journal entry A B. Journal entry B C. Journal entry C D. Journal entry D E. Journal entry E