Question

QUESTION 1 On a piece of paper make a statement of Cost of Goods Manufactured and find TWO correct answers. Drect materials $20,000. Direct Labor $25,000. Manufacturing Overhead $5000 Beginning work in process $10000. Ending work in process $2000 total manufacturing costs are $12000 total manufacturing costs are $58,000 total manufacturing costs are $50,000 total cost of goods manufactured is $58,000 total cost of goods manufactured is $40.000 QUESTION 2 I have budgeted 5400000 in overhead costs and 40,000 machine hours. I actually spent $410 000 in owerhead and used 3000 machine hours A $20,000 cost of goods sok 20000 - budgeted overhead per machine hour Manufacturing overhead applied overhead under or over applied overhead? Cost of good so How much over or under applied? journal entry to correct overhead F 30.000 51 QUESTION 3 Match the following with the type of entory i am descong Pay close attention to the dates - October 1 l have a stack of wood A Beginning work Process or D.cost of goods old QUESTION 4 Check TWO that are part of manag ed Oo here to search

Answer 1

Total manufacturing cost = Direct Material + Direct labor + Manufacturing Overhead

= 20,000+25000+5000

= $50,000

Cost of goods manufactured = Manufacturing cost + Beginning work in process inventory – ending work in process inventory

= 50,000+10,000-2,000

= $58,000

Hence, correct answers are 3 and 4

2.Budgted overhead per machine hour = Budgeted overheads/Budgeted machine hours

= 400,000/40,000

= $10

i.e. G

Applied overhead = Actual hours*Budgeted rate

= 39000*10

= $390,000 i.e. F

Under or over = Actual overheads – applied

= 410,000-390,000

= $20,000 under applied

Entry – B

3.Oct 1 – B

Oct 31 – completed tables – E

1^st half done – A

75% done – C

Sold - D