Question

1. Bu Hao Lao Shu Company developed the following data for the current year:

Beginning Work in Process (BI, WIP) Direct materials used (DM)
Actual overhead (OH)
Overhead applied (est OH)

Cost of goods manufactured (CGM) Total manufacturing costs (TMC)

$120,000 72,000 144,000 108,000 132,000 360,000

Bu Hao Lao Shu Company's Ending Work in Process (EI, WIP) inventory is A) $348,000.
B) $240,000.
C) $228,000.

D) $108,000.

2.

Lao Shu Mfg. provided the following information from its accounting records for 2015:

Est. Direct Labor Hours (DLH) Actual Direct Labor Hours (DLH) Est. $$ Overhead (OH)
Actual $$ Overhead (OH)

30,000 direct labor hours 28,000 direct labor hours $600,000 $580,000

How much is the (PDR) overhead rate if Lao Shu bases the rate on direct labor hours (DLH) ?

1. A) $20.00 per hour

2. B) $20.71 per hour

3. C) $19.33 per hour

4. D) $18.67 per hour

3. To Apply Overhead (OH-est), it is recorded with a Journal Entry (J/E) that includes a: A) credit (CR) to Work in Process Inventory (WIP).
B) credit (CR) to Manufacturing Overhead (OH).
C) debit (DR) to Manufacturing Overhead (OH).

D) credit (CR) posted to individual job cost sheets.

4. At the beginning of the year, Most Honorable Professor Mullen, Inc estimates annual overhead costs to be $1,200,000 and that an estimated 300,000 machine hours will be used. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year were 315,000 hours is

A) $1,200,000. B) $1,142,857. C) $840,000. D) $1,260,000.

5.

18. To Apply Overhead (OH) in a job order cost system, a Credit to Manufacturing Overhead (OH) will be accompanied by a Debit to

    1. A) Cost of Goods Manufactured (CGM).

    2. B) Finished Goods Inventory (FG).

    3. C) Work in Process Inventory (WIP).

    4. D) Raw Materials Inventory (RM).

Answer 1

- Total manufacturing cost IBI, WIP) solution- o Com = 360000+ 120000 -132000 034 Process 2) = 480 000 – 132000 $348000 option K & 348 ooo is correct. predetermined overhead rate = Estimated of Estimated DLH 600000 300010 $20 per hour Option d is correct option B Credit (UR.) to manufacturing ovegheodow) Account title and explanation Debit credit works in process inventory ufacturing oves head Tobecood manufacturing overhead) XX* Manu XXX

2 E predetermined over head rate= Estimated manufacturing overhead Estimated allocation base 200000 300 000 = 4 per machine hour amount of overhead applied = 31500ox.u - 1260ood option "Ď is corre et U option ac Dosis in poocess Inventooy(wip) Debit I credit XXX Account Title and explanation work in process inventory manufacturing overhead To recood apply over head) xxx