Question

ve Varo n Di M40 So Manucuring Corporation uses a job order costing system. At the beginning of the year. Som had RM3.000 in its Work in Process inventory account. The following information to S o perations for the year Direct matras costassigned to production RM14.000 Direct labor cost signed to production RMTB.000 Saling general and administrative expenses incurred. RM25.000 Manufacturing overhead cost incurred RM200.000 Underapplied manufacturing overhead cost RM11.000 Cost of goods manufactured ......... RM5O2 000 Cost of goods sold ................. . RM500,000 What is the balance in Seritella's Work in Process inventory account at the end of the year? (Assume that the Manufacturing Overhead account has not yet been closed out) A) RM13,000 B) RM24,000 c) RM35,000 D) RM60,000 29. In a job-order costing system, the incurrence of indirect labor costs would usually be recorded as a debit to: A) Manufacturing Overhead. B) Finished Goods c) Work in Process D) Cost of Goods Sold. Which of the terms below would make the following sentence correct? Multiple overhead rate costing systems are usually more _than plantwide overhead rates. 3 accurate Yes Yes No complex Yes No Yes No

Answer 1

28.A.RM 13,000.

direct materials	114,000
direct labor	78,000
manufacturing overhead incurred net off underapplied overhead (296,000-11,000)	285,000
add: beginning balance	38,000
less:cost of goods manufactured	(502,000)
ending balance of work in process	13,000

29.A.Manufacturing overhead.

In a job order costing system the indirect labor cost is debited to manufacturing overhead.

30.A.........Yes ...........Yes...

Multiple overhead rate costing systems are usually more accurate and complex than plantwide overhead rates.