TXT.rtf - PRACTICETESTCH16,17&18 manufacturer A: Compute conversion costs given the following data Direct Materials $412,700 Direct Labor,

TXT.rtf - PRACTICETESTCH16,17&18 manufacturer A: Compute...

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PRACTICE TEST - CH 16, 17 & 18 Which of the following is an example of direct labor for a chair  manufacturer? A:wages for painting chairs painting of chairs is work done directly on the product. Compute conversion costs given the following data: Direct Materials, $412,700; Direct Labor, $196,300; Factory Overhead, $187,600. A: 383,900 Conversion costs are direct labor and factory overhead. If the beginning raw materials inventory balance is $50 and the ending  raw materials inventory balance is $500 and  the amount of raw  materials placed into production $400 ..... what are the Net Purchases for the period? A: 850 If the ending inventory is $500 after $400 was transferred to WIP  production the Total Available for Use would have to be $900. Since the beginning balance was $50, $850 must have been the Net Purchases  for the period The San Pedro Company forecasts that total overhead for the current year will be $10,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate? A: 50 per machine hour Estimated overhead divided by forecasted machine hours (the activity 
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base in this case) gives you the predetermined overhead rate. Selected accounts with some debits and credits omitted are presented as follows: Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,230,0 00 31 Direct material s X 31
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