Question 1

Underapplied overhead means

Accepted Answer

The answer of Underapplied overhead means
...

Question 2

Jenkins Company had the following information for the year: Jenkins Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours.Assume the only inventory balance is an ending Finished Goods Inventory balance of $19,000.What was cost of goods manufactured?

Accepted Answer

The answer of Jenkins Company had the following information for...

Question 3

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Accepted Answer

The answer of Manufacturing overhead was estimated to be $200,000...

Question 4

Cost of goods sold is the amount of cost transferred

Accepted Answer

Cost of goods sold represents the cost of items that have been sold to customers. This cost is calculated by taking the cost of goods transferred out of the Finished Goods Inventory and into Cost of Goods Sold. Therefore, choice A is the correct answer. Choices B, C, and D do not accurately describe the transfer of costs related to goods sold.

Question 5

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Accepted Answer

The answer of Manufacturing overhead was estimated to be $400,000...

Question 6

Sawyer Company had the following information for the year: Sawyer Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours.Assume the only inventory balance is an ending Finished Goods Inventory balance of $9,000.What was cost of goods manufactured?

Accepted Answer

The answer of Sawyer Company had the following information for...

Question 7

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.Which of the following would be correct?

Accepted Answer

Manufacturing overhead is overapplied when the actual overhead costs are less than the estimated overhead costs. Here, the estimated overhead was $250,000, but the actual overhead was only $225,000, meaning $25,000 less was spent than anticipated, indicating overhead is overapplied by $25,000. However, without calculating the overhead rate and applying it to the actual hours, the exact amount of over or underapplication cannot be determined from the information given, making the closest correct choice given the options and typical understanding of the scenario as overapplied.

Question 8

Sawyer Company had the following information for the year: Sawyer Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours.Assume the only inventory balance is an ending Finished Goods Inventory balance of $9,000.What was adjusted cost of goods sold?

Accepted Answer

The answer of Sawyer Company had the following information for...

Question 9

McGown Corp has the following information: Additional information for the year is as follows:
Compute the direct materials used in production.

Accepted Answer

The answer of McGown Corp has the following information: Additional...

Question 10

The most common method for disposing of over- or underapplied overhead is to

Accepted Answer

The most common method for disposing of over- or underapplied overhead is to make a direct adjustment to Cost of Goods Sold. This is because any over- or underapplied overhead represents a difference between the actual overhead incurred and the overhead charged to production, which ultimately affects the cost of goods sold. Making a direct adjustment to Cost of Goods Sold allows for the proper allocation of these costs and ensures accurate financial statements.

Question 11

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Accepted Answer

The predetermined overhead rate is calculated based on the estimates given at the beginning of the year: $200,000 / 20,000 hours = $10 per direct labor hour. With actual labor hours being 21,000, the applied overhead would be 21,000 hours * $10/hour = $210,000. The actual overhead was $215,000, so the overhead was under-applied by $5,000 ($215,000 - $210,000). To dispose of this under-applied balance, Cost of Goods Sold would be debited for $5,000.

Question 12

Ragtime Company had the following information for the year: Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year.Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000.What was cost of goods manufactured?

Accepted Answer

The answer of Ragtime Company had the following information for...

Question 13

When disposed of,overapplied manufacturing overhead will

Accepted Answer

When overapplied manufacturing overhead is disposed of, it decreases Cost of Goods Sold because the overhead applied to products was more than the actual overhead incurred, leading to a reduction in the expense recorded.

Question 14

When disposed of,underapplied manufacturing overhead will

Accepted Answer

Underapplied manufacturing overhead is an expense that has not been allocated to products, therefore it is considered a manufacturing overhead cost that has not been reflected in the cost of goods sold. When disposed of, this underapplied cost will increase the Cost of Goods Sold.

Question 15

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Accepted Answer

The predetermined overhead rate is calculated by dividing estimated manufacturing overhead by estimated direct labor hours:

$250,000 / 20,000 hours = $12.50 per direct labor hour

To apply overhead to production, the actual direct labor hours are multiplied by the predetermined overhead rate:

19,000 hours x $12.50 per hour = $237,500

Since the actual manufacturing overhead was $225,000, there is an overapplied amount of $12,500. To dispose of this balance, Cost of Goods Sold would be credited for $12,500.

Question 16

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Accepted Answer

The answer of Manufacturing overhead was estimated to be $250,000...

Question 17

Jenkins Company had the following information for the year: Jenkins Company used a predetermined overhead rate using estimated overhead of $320,000 and 8000 estimated direct labor hours.Assume the only inventory balance is an ending Finished Goods Inventory balance of $19,000.What was adjusted cost of goods sold?

Accepted Answer

The answer of Jenkins Company had the following information for...

Question 18

Ragtime Company had the following information for the year: Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year.Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000.What was adjusted cost of goods sold?

Accepted Answer

The answer of Ragtime Company had the following information for...

Question 19

Cost of goods manufactured is the amount of cost transferred

Accepted Answer

Cost of goods manufactured is the cost of the goods that have been completed during the period and transferred from Work in Process Inventory to Finished Goods Inventory. Therefore, the cost is transferred out of Work in Process Inventory and into Finished Goods Inventory.

Question 20

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Accepted Answer

Manufacturing overhead was overapplied by $15,000 ($415,000 actual - $400,000 estimated). To dispose of this overapplied amount, the Manufacturing Overhead account would be debited for $15,000, not $5,000 as stated in the options. However, given the choices provided, option C is the closest to the correct accounting treatment for disposing of the overapplied overhead, despite the numerical discrepancy.

Quiz 2: Job Order Costing

Underapplied overhead means

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Cost of goods sold is the amount of cost transferred

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.Which of the following would be correct?

McGown Corp has the following information: Additional information for the year is as follows: Compute the direct materials used in production.

The most common method for disposing of over- or underapplied overhead is to

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Ragtime Company had the following information for the year: Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year.Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000.What was cost of goods manufactured?

When disposed of,overapplied manufacturing overhead will

When disposed of,underapplied manufacturing overhead will

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Ragtime Company had the following information for the year: Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year.Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000.What was adjusted cost of goods sold?

Cost of goods manufactured is the amount of cost transferred

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?