Question

Mgr. Acct 2123 - Chapter 3 HW (Summer 2020) 1) In a job-order costing system, which of the following events would trigger recording data on a job cost sheet? A) the purchase of direct materials B) the payment of fire insurance on the factory building C) the payment for product advertising D) none of the choices 2) Refer to the T-account below. Manufacturing Overhead 9,000 (2) 167,000 15,000 80,000 30,000 25,000 159,000 167,000 Bal. 8,000 The ending balance of $8,000 represents which of the following? A) Underapplied overhead. B) Manufacturing overhead that will be carried over to the next period. C) Overapplied overhead. D) A bookkeeping error. 3) In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the "Total raw materials available" is computed by adding together the "Beginning raw materials inventory" and: A) Ending raw materials inventory B) Raw materials used in production C) Purchases of raw materials D) Indirect materials included in manufacturing overhead 4) In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations? A) Cost of goods manufactured = Total manufacturing costs + Ending work in process inventory - Beginning work in process inventory B) Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory C) Cost of goods manufactured = Total manufacturing costs + Beginning finished goods inventory - Ending finished goods inventory D) Cost of goods manufactured - Total manufacturing costs +Ending finished goods inventory - Beginning finished goods inventory

Answer 1

Solution:

1. - Option (d) "None of the above" is the correct option

Explaination:

Raw material will record in raw material account, advertising cost is period cost and factory insurance is manufacturing overhead cost. So None of the above is correct option.

2.Option (c) "Overapplied overhead" is the correct option.

Explaination:

As Manufacturing incurred is less than manufacturing applied by 8000 therefore it is an overapplied overhead.

3.Option (c)" Purchase of Raw material" is the correct option

Explaination:

Raw material available for Sale = Begining Raw Material + Purchase of Raw Material

4.Option (b) i.e "Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory" is the correct option

Explanation:

as Total Manufacturing cost is added in begining WIP and Ending WIP is deducted to calculate the cost of goods manufactured.