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ACCT2301-002-Chap4-Additional-sp2009

ACCT2301-002-Chap4-Additional-sp2009 - 1 ACCT 2301 Spring...

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1 ACCT 2301 Spring Semester 2009 February 9, 2009 Practice Problems – Job-Order Costing 1. In a normal costing system (i.e., overhead is applied using a pre-determined overhead rate), Cost of Goods Manufactured for the period represents: A. the total costs assigned to jobs in Work in Process during the period. B. the total costs assigned to jobs transferred from Finished Goods to Cost of Goods Sold during the period. C. the total costs assigned to jobs placed into production during the period. D. the total costs assigned to jobs completed during the current period whether the jobs were started before or during the current period. 2. Buffalo Springs Company uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information about Buffalo Springs’ Work in Process inventory account has been provided for the month of May: May 1 balance $26,000 Charges (debits) during May: Direct materials $40,000 Direct labor $50,000 Applied manufacturing overhead $37,500 During the month, Buffalo Springs' Work in Process inventory account was credited for $120,500, which represented the Cost of Goods Manufactured for the month. Only one job remained in process on May 31; this job had been charged with $9,600 of applied overhead cost. The amount of direct materials cost in the unfinished job would be:
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