Question :
51. Wilson Enterprises applies overhead based direct labor cost. The company : 1197762
51. Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $240,000, and direct labor cost to be $300,000. Actual direct labor cost for Martinez Manufacturing was $280,000. The journal entry to record manufacturing overhead would include a:
A. Debit to Work in Process Inventory for $240,000.
B. Credit to Manufacturing Overhead Applied for $350,000.
C. Credit to Work in Process Inventory for $224,000.
D. Credit to Manufacturing Overhead Applied for $224,000.
52. Martinez Manufacturing applies overhead based on direct labor hours. The company estimates that their overhead for the year will be $180,000, and that they will use 72,000 direct labor hours. During the year, Martinez Manufacturing actually used 75,000 direct labor hours and actual overhead costs were $190,000. At the end of the year, manufacturing overhead was:
A. Overapplied by $2,500.
B. Overapplied by $10,000.
C. Underapplied by $2,500.
D. Underapplied by $10,000.
53. At the end of the fiscal year, any overapplied or underapplied overhead is
A. transferred to the Cost of Goods Sold account in an adjustment.
B. shown on the balance sheet as either a deferred charge or a deferred credit.
C. allocated to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory.
D. transferred to the Cost of Goods Manufactured account in an adjustment.
54. If the manufacturing overhead was overapplied, then
A. the manufacturing overhead account had more debits than credits.
B. the manufacturing overhead account had more credits than debits.
C. the actual overhead expenses were more than the amount going to Work in Process.
D. the debits to Work in Process were more than the credits to Work in Process.
55. Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $240,000, and direct labor cost to be $300,000. Actual direct labor cost for Martinez Manufacturing was $280,000 and actual overhead costs were $220,000. At the end of the year, manufacturing overhead was:
A. Overapplied by $20,000.
B. Underapplied by $20,000.
C. Overapplied by $4,000.
D. Underapplied by $4,000.
56. At the end of the year the Manufacturing Overhead account is closed into what account?
A. Work in Process
B. Finished Goods
C. Cost of Goods Sold
D. Manufacturing Overhead Control
57. At the end of the year, Harding Company had a balance in Manufacturing Overhead of $19,000, and a balance in Manufacturing Overhead Applied of $20,000. When the Manufacturing Overhead account is closed, the Cost of Goods Sold account will be:
A. Increased by $1,000.
B. Decreased by $1,000.
C. Unaffected.
D. Closed to Manufacturing Overhead Applied.
58. At the end of the year, Easton Company had a balance in Manufacturing Overhead of $20,000, and a balance in Manufacturing Overhead Applied of $19,000. When the Manufacturing Overhead account is closed, the Cost of Goods Sold account will be:
A. Increased by $1,000.
B. Decreased by $1,000.
C. Unaffected.
D. Closed to Manufacturing Overhead Applied.
59. How often are direct labor costs entered on the Job Order Cost Sheets?
A. Daily
B. Weekly
C. Monthly
D. Immediately—as time cards are completed
60. A job order cost sheet summarizes
A. the direct labor, direct materials used, and actual overhead costs incurred on a specific job.
B. the direct labor, direct materials used, and applied overhead association with a specific job.
C. the estimated costs that will be required to complete a specific job.
D. the direct labor and direct materials used only.
61. Job order cost sheets constitute a subsidiary ledger that supports
A. the Work in Process Inventory account.
B. the Finished Goods Inventory account.
C. the Raw Materials Inventory account.
D. the Cost of Goods Manufactured account.
62. The ______ is a record of all manufacturing costs charged to a specific job.
A. Cost of Goods Sold
B. Standard Costs Card
C. Work in Process Inventory
D. Job Order Cost Sheet
63. When a perpetual inventory system is used, sales revenue is recorded as products are sold,
A. but the cost of the goods sold is not recorded.
B. and the cost of the goods sold is transferred from the Finished Goods Inventory account to the Cost of Goods Sold account.
C. and the cost of the goods sold is transferred from the Work in Process Inventory account to the Cost of Goods Sold account.
D. and the cost of goods sold is transferred from the Cost of Goods Manufactured to the Cost of Goods Sold account.
