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159 the manufacturing overhead applied was a 2700 b

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159.The manufacturing overhead applied was:A)$2,700B)$3,000C)$7,800D)$13,700Solution:The credit to Manufacturing Overhead is the manufacturing overhead applied.160.The manufacturing overhead was:A)$200 overappliedB)$2,700 overappliedC)$200 underappliedD)$2,700 underappliedSolution:Actual manufacturing overhead(2,300 + 3,000 + 2,700)................................Appliedmanufacturing overhead*...................Underappliedmanufacturing overhead............$8,0007,800$200* The credit to Manufacturing Overhead is the manufacturing overhead applied.
161.A number of companies in different industries are listed below:1.Electric utility2.Frozen orange juice processor3.Specialty coffee roaster (roasts small batches of specialty coffee beans)4.Natural gas production company5.Commercial photographer 6.Contract oil drilling companyRequired:For each company, indicate whether the company is most likely to use job-order costing or processcosting.Ans:1.Electric utility: Process Costing2.Frozen orange juice processor: Process Costing3.Specialty coffee roaster (roasts small batches of specialty coffee beans): Job-Order Costing4.Natural gas production company: Process Costing5.Commercial photographer: Job-Order Costing6.Contract oil drilling company: Job-Order Costing162.Whether a company uses process costing or job-order costing depends on its industry. A numberof companies in different industries are listed below:1.Flour mill2.Dairy farm3.Electric utility4.Custom boat builder5.Management consulting firm6.Aluminum refiner that makes aluminum ingots from bauxite oreRequired:For each company, indicate whether the company is most likely to use job-order costing or processcosting.Ans:1.Flour mill: Process Costing2.Dairy farm: Process Costing3.Electric utility: Process Costing4.Custom boat builder: Job-Order Costing5.Management consulting firm: Job-Order Costing6.Aluminum refiner that makes aluminum ingots from bauxite ore: Process Costing163.Some companies use process costing and some use job-order costing. Which method a companyuses depends on its industry. A number of companies in different industries are listed below:1.Construction company that builds office buildings2.Winery that produces a variety of wines3.Cement manufacturer
4.Mushroom farm that produces the standard button mushroom in caves5.Aluminum refiner that makes aluminum ingots from bauxite oreRequired:For each company, indicate whether the company is most likely to use job-order costing or processcosting.Ans:1.Construction company that builds office buildings: Job-Order Costing2.Winery that produces a variety of wines: Job-Order Costing3.Cement manufacturer: Process Costing4.Mushroom farm that produces the standard button mushroom in caves: Process Costing5.Aluminum refiner that makes aluminum ingots from bauxite ore: Process Costing164.Gilford Inc.uses a job-order costing system. Costs going through the company's work in processaccount during June are given below. Manufacturing overhead is applied to production using apredetermined overhead rate based on direct labor cost.

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Term
Fall
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Tags
Cost Accounting, Finished Goods

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