Question

Question 10 (1 point) Using the following information, what would the JE be for under/over applied OH: Actual Manu OH for 20x2 is $160,000 Actual DL hours for 20x2 is 110,000 POHR = $1.50 per DL hour Question 10 options:

a) Debit CGS 5,000 and credit Manu OH 5,000.

b) Debit Manu OH 5,000 and credit CGS 5,000.

c) Debit CGS 10,000 and credit Manu OH 10,000

d) Debit Manu OH 10,000 and credit CGS 10,000.

Question 9 (1 point) Overapplied manufacturing OH means that:

a) The estimated Manu OH cost was less than applied Manu OH cost.

b) The applied Manu OH cost was less than actual Manu OH cost

c) The applied Manu OH cost was greater than actual Manu OH cost.

d) The estimated Manu OH cost was greater than actual Manu OH cost.

Question 8 (1 point) The final amount of Cost of Goods Manufactured, on the Schedule of Cost of Goods Manufactured, is equal to:

a) the amount of costs placed into production during the period.

b) the amount of cost charged to WIP during the period.

c) the amount of cost of goods completed during the current period.

d) the amount of cost transferred from finished goods to CGS during the period.

Question 7 (1 point) Saved When indirect materials are requisitioned into production, the account that is debited is:

a) Raw materials.

b) WIP.

c) Manufacturing OH.

d) Finished goods.

Question 6 (1 point) Saved When direct materials are requisitioned into production, the account that is debited is:

a) Raw materials.

b) WIP.

c) Manufacturing OH.

d) Finished goods.

Question 5 ( 1point) Nonmanufacturing costs, such as CEO salaries, are expensed in the period incurred and not allocated to individual jobs.

True

False

Question 4 (1 point) On the Income Statement for a manufacturing firm, operating expenses would include a line item for “Direct Labor Expense”.

True

False

Question 3 (1 point) The amount of CGS on the Income Statement of a manufacturer includes increases/decreases for under/over applied manufacturing OH.

True

False

Question 2 (1 point) The POHR will not apply the correct amount of manufacturing OH to jobs because it was based on estimates

True

False

Question 1 (1 point) The entry to record depreciation on manufacturing equipment would include a debit to manufacturing OH and a credit to Accumulated Depreciation.

True

False

Answer 1

Question 10)

The correct answer is b) Debit Manufacturing Overheads with $5,000 and Credit Cost of Goods Sold (CGS) with $5,000.

Supporting calculations:

Actual Overheads = $160,000

Applied overheads are $165,000 (110,000 direct labor hours * $1.50 per hour of Predetermined Overhead Rate (POHR))

The applied overheads of $165,000 is more than the actual overheads of $160,000 so it means that the manufacturing overheads are overapplied by $5,000 ($165,000 - $160,000).

When overheads are overapplied then Manufacturing Overheads are debited and Cost of Goods Sold is credited.

Therefore, Manufacturing overheads are debited with $5,000 and Cost of goods sold (CGS) are credited with $5,000. Thus, option (b) is correct.

Question 9)

The correct answer is C) The applied Manufacturing Overhead Costs are greater than the actual manufacturing overheads costs

Supporting explanations:

As explained in question 10) when manufacturing overheads are applied more than the actual manufacturing overheads then it is called overapplied manufacturing costs and similarly, when manufacturing overheads are applied less than the actual manufacturing overheads then it is called underapplied manufacturing costs.

Therefore, overapplied manufacturing overhead costs means applied overheads are more than the actual overheads, hence, option (c ) is correct.

Note: As per HOMEWORKLIB RULES, the first question should be answered but i have answered the first two questions, hence, please post the remaining questions separately.

Please do not give me the negative rating for not answering all the questions as i just followed the HOMEWORKLIB RULES and also it is taking more time to answer each question.