Question

11) Brand Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,860 hours and the total estimated manufacturing overhead was $511,524. At the end of the year, actual direct labor-hours for the year were 21,650 hours and the actual manufacturing overhead for the year was $511,524. Overhead at the end of the year was:

Multiple Choice

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$4,964 overapplied

$4,964 underapplied

$4,914 underapplied

$4,914 overapplied

12) Weatherhead Inc. has provided the following data for the month of March. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

	Work In Process			Finished Goods			Cost of Goods Sold			Total
Direct materials	$	4,240		$	14,740		$	41,700		$	60,680
Direct labor		10,080			29,480			83,880			123,440
Manufacturing overhead applied		5,860			11,200			35,060			52,120
Total	$	20,180		$	55,420		$	160,640		$	236,240

Manufacturing overhead for the month was overapplied by $4,100.

The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.

The work in process inventory at the end of March after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: Round intermediate percentage computations to the nearest whole percent.)

n 16e Rechecks 2017-08-28

Multiple Choice

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$19,800

$20,318

$20,389

$19,729

13) Brand Inc. has provided the following data for the month of May:

Inventories:

	Beginning		Ending
Work in process	$	36,000	$	31,000
Finished goods	$	65,000	$	69,000

Additional information:

Direct materials	$	76,000
Direct labor cost	$	106,000
Manufacturing overhead cost incurred	$	82,000
Manufacturing overhead cost applied to Work in Process	$	80,000

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

The cost of goods manufactured for May is:

Multiple Choice

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$262,000

$267,000

$264,000

$269,000

14. Brand Inc. started the month with 24,100 units in its beginning work in process inventory. An additional 309,100 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29,100 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month?

Multiple Choice

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333,200

362,300

304,100

314,100

Answer 1

Q11.
$ 4914 Underapplied
Explanation:
Pre determined OH rate= 511524/21860 = 23.40 per DLH
Actual Manufacturing OH			511524
Less: OH applied			506610
	(21650*23.40)
under-applied OH			4914
Q12.
Answer is 19800
Explanation:
Total balance in WIP inventory				20180
Less: Proportionate share of over-applied OH				362
	(4100*20180/236240)
Balance in WIP				19818
Closest to $ 19800
Q13.
Answer is $ 267000
Explanation:
Cost of goods manufactured:
Beginning balance of WIP			36000
Current cost of manufacturing:
Material		76000
Labour		106000
Overheads applied		80000	262000
Total cost of goods manufacturing			298000
Less; Ending WIP			31000
Cost of goods manufactured:			267000
Q14.
Answer is 304100 units
Explanation:
Beginning Inventory			24100
Add: Units started			309100
Total Units to account for			333200
Less: Ending inventory			29100
Units completed and transferred out			304100