112.The journal entry to record the purchase of raw materials would include a:A)debit to Raw Materials of $73,000B)credit to Raw Materials of $50,000C)credit to Raw Materials of $73,000D)debit to Raw Materials of $50,000Ans: D LO: 4 Solution:Raw Materials50,000Account Payable50,000113.The journal entry to record the requisition from the storeroom would include a:Work in Process*44,000Manufacturing Overhead6,000Raw Materials50,000*$50,000 − $6,000 = $44,000
Use the following to answer questions 114-115:During March, Pendergraph Corporation incurred $60,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $62,000.114.The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:Manufacturing Overhead60,000Accounts Payable60,000115.The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:Work in Process62,000Manufacturing Overhead62,000
Use the following to answer questions 116-121:The following T accounts are for Stanford Company:Raw MaterialsBeg. Bal. 7,000 (2) 24,000(1) 19,000 Cost of Goods SoldSales Salaries Expense(4) 11,000Work in ProcessBeg. Bal.11,000(2)15,000 (7)?(4)18,000 (6)31,000 Accounts Payable(1)19,000(5)5,000Manufacturing Overhead(2)9,000 (6)31,000(3)16,000 (4)8,000 (5)5,000 7,000Wages & Salaries PayableBeg. Bal.7,000(4)37,000
Finished GoodsBeg. Bal.18,000 (7)62,000 End. Bal.15,000 Accumulated Depreciation—FactoryBeg. Bal.82,000(3)16,000116.The indirect labor cost is:A)$8,000B)$15,000C)$18,000D)$37,000Ans: A LO: 7 Solution:Journal entry (4):Sales Salaries Expense11,000Work in Process18,000Manufacturing Overhead8,000Wages and Salaries Payable37,000117.The cost of goods manufactured is:Journal entry (7):Finished Goods62,000Work in Process62,000**To balance Finished Goods debit of $62,000
118.The cost of goods sold (after adjustment for underapplied or overapplied overhead) is:Finished GoodsBeg. Bal.18,000COGS65,000*(7)62,000End. Bal.15,000*18,000 + 62,000 − Cost of Goods Sold = 15,000Cost of Goods Sold = 65,000Manufacturing Overhead(2)9,000(6)31,000(3)16,000(4)8,000(5)5,0007,000The $7,000 debit balance represents underapplied overhead; the $7,000 will be added to the original $65,000 Cost of Goods Sold to arrive at an adjusted Cost of Goods Soldof $72,000.
- Spring '16
- Cost Accounting, .........