Question

Savannah Factory applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows:
Estimated Actual
Overhead cost $174,000 $171,100
Direct labor hours 5,800 5,900
Direct labor cost $87,000 $89,975
How much overhead should be applied in total during August?
A. $179,950
B. $174,000
C. $177,000
D. $171,100

The manufacturing operations of Saltic Enterprises had the following balances for the month of
March:

March 1, 2013 March 31, 2013
Raw Materials $11,000 $14,000
Work in Process 8,000 10,000
Finished Goods 25,000 28,000
If Saltic reports cost of goods sold totaling $249,000 in March, how much did it transfer out of
Work in Process as completed goods?
A. $277,000
B. $246,000
C. $251,000
D. $252,000

DistaBricks manufactures custom brick and applies job-order costing. The following information relates to the fiscal year ending December 31, 2013.
Beginning balance in Raw Materials Inventory $ 13,600
Purchases of raw material 211,000
Ending balance in Raw Materials Inventory 15,100
Beginning balance in Work in Process 18,700
Ending balance in Work in Process 16,500
Direct labor cost 78,600
Manufacturing overhead applied 47,900
Actual manufacturing overhead 44,800
Beginning balance in Finished Goods 26,200
Ending balance in Finished Goods 24,500
Sales 421,000
Selling expenses 115,400
General and administrative expenses 75,900
How much is cost of goods sold?
A. $339,900
B. $338,200
C. $336,000
D. None of these answer choices are correct

Hard Walks Inc. designs and builds custom sidewalks and employs a job-order costing system. During June, the company’s transactions and accounts included the following:
Raw materials purchased $282,000
Direct materials used in production 290,000
Raw materials inventory, beginning 11,400
Corporate administrative costs 22,500
Selling expenses 16,500
Sales 389,000
Total manufacturing overhead applied 45,300
Total manufacturing overhead incurred 49,100
Finished goods, beginning 21,400
Work in process inventory, beginning 31,800
Work in process inventory, ending 28,700
Direct labor cost incurred 42,300
Finished goods, ending 23,500
How much is cost of goods manufactured for June?
A. $348,900
B. $377,600
C. $380,700
D. $384,500

Answer 1