Factory overhead incurred 148000 cost of goods

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Chapter 2 / Exercise BE2-6
Managerial Accounting
Warren/Tayler
Expert Verified
Factory overhead incurred148,000Cost of goods completed299,000Cost of goods sold250,000Beginning direct materials inventory34,000Beginning WIP inventory70,000Beginning finished goods inventory55,000Overhead application rate, as a percent of direct-labor costs105 percentThe ending balance of work-in-process inventory is ________.A) $418,350B) $119,350C) $127,000D) $426,000 Answer: Explanation: $70,000 + $88,000 + $127,000 + 1.05 ($127,000) - 299,000 = $119,350
B
Diff: 3Objective: 6AACSB: Application of knowledge
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Managerial Accounting
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Chapter 2 / Exercise BE2-6
Managerial Accounting
Warren/Tayler
Expert Verified
31) River Falls Manufacturing uses a normal cost system and had the following data available for 2018:Direct materials purchased on account$145,000Direct materials requisitioned82,000Direct labor cost incurred127,000Factory overhead incurred140,000Cost of goods completed288,000Cost of goods sold248,000Beginning direct materials inventory25,000Beginning WIP inventory63,000Beginning finished goods inventory53,000Overhead application rate, as a percent of direct-labor costs125 percentThe ending balance of finished goods inventory is ________.
C
Diff: 3Objective: 6AACSB: Application of knowledge
32) Beta Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:Department ADepartment BDirect materials$800,000$200,000Direct manufacturing labor$200,000$900,000Manufacturing overhead$500,000$450,000The actual material and labor costs charged to Job #432 were as follows:TotalDirect materials:$25,000Direct labor:Department A$10,000Department B$12,000$22,000Beta applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.Proportion of manufacturing overhead with respect to the total cost of the job is ________.
A
Diff: 3Objective: 6AACSB: Application of knowledge33) Work-in-Process Control will be decreased (credited) for the amount of direct-labor costs incurred.
Diff: 1Objective: 6AACSB: Analytical thinking34) The Cost of Goods Sold account tracks job costs from the time jobs are started until they are completed.
Diff: 2Objective: 6AACSB: Analytical thinking

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