Short EXPLANATION or no points
Question 7 and 8 use the following information:
Nadell Corporation reported the following data for the month of April:
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Inventories:
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Beginning
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Ending
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Raw materials
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$ 30,000
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$ 32,000
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Work in process
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$ 20,000
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$ 21,000
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Finished goods
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$ 39,000
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$ 53,000
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7. If the raw materials purchased during April totaled $63,000, what was the cost of the raw materials used in production for the month?
Answer
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A. $63,000
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B. $61,000
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C. $62,000
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D. $65,000
8. If the company transferred $234,000 of completed goods from work in process to finished goods inventory during April, what was the cost of goods sold for the month?
Answer
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A. $234,000
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B. $235,000
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C. $220,000
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D. $248,000
9. Under the job order costing system, when applying manufacturing overhead to jobs, the formula to calculate the applied overhead amount is as follows:
Answer
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A. Predetermined overhead rate divided by the actual manufacturing overhead incurred on the particular job.
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B. Predetermined overhead rate times the actual manufacturing overhead incurred on the particular job.
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C. Predetermined overhead rate divided by the actual units of allocation base charged to the particular job.
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D. Predetermined overhead rate times the actual units of allocation base charged to the particular job.
Question 10 and 11 use the following information:
Acer Corporation adopts the job order costing system, and applies manufacturing overhead on the basis of machine hours. It has provided the following data for its most recent year of operations.
Estimated manufacturing overhead for the year: $2,245,500
Estimated machine hours for the year: 45,000
Actual manufacturing overhead for January: 224,000
Actual machine hours for January: 4,440
The estimates of the manufacturing overhead and of machine hours were made at the beginning of the year for the purpose of computing the company’s predetermined overhead rate for the year.
10. The predetermined overhead rate is closest to:
Answer
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A. $49.23
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B. $49.90
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C. $49.78
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D. $50.45
11. By the end of January, the Company applied manufacturing overhead to all the jobs completed. The overhead for the month was:
Answer
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A. $2,994 underapplied
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B. $2,444 overapplied
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C. $2,444 underapplied
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D. $2,994 overapplied
12. In a job order costing system, the entry to record depreciation on manufacturing equipment would include:
Answer
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A. a debit to the Work in Process inventory account.
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B. a debit to the Depreciation Expense account.
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C. a debit to the Manufacturing Overhead account.
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D. a credit to the Work in Process inventory account.
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