Question

Use the following information to answer questions 5 – 21 .

Allen Company applies manufacturing overhead on the basis of direct labor hours. Overhead was estimated to be $500,000 and direct labor hours were estimated to be 20,000.

During the year, Allen Company incurred actual overhead costs of $510,000, actual direct labor hours of 21,000, and actual direct labor costs of $615,000.

Allen Company had the following inventory balances at the beginning and end of the year:

January 1 December 31

Finished goods $315,000   $325,000

Work in process   450,000     470,000

Raw material   320,000     325,000

During the year, the company purchased $230,000 of raw materials.

1.  What is the predetermined manufacturing overhead rate?

2. What amount is applied to manufacturing overhead?

3.  At the end of year, was manufacturing overhead over- or under-applied?

4. Regarding Question 7, what is the amount?

5.  Total cost of goods manufactured is:

6. Cost of goods sold is:

7.  The journal entry to transfer costs to work in process includes a debit to which account?

a. Manufacturing overhead

b. Work in process

c. Finished goods

d. Cost of goods sold

e. None of the above

8. Refer to the previous question. The amount of the entry is:

9. The journal entry to transfer costs from work in process to finished goods includes a debit to which account?

a. Manufacturing overhead

b. Work in process

c. Finished goods

d. Cost of goods sold

e. None of the above

10. The journal entry to transfer costs from work in process to finished goods includes a credit to which account?

a. Manufacturing overhead

b. Work in process

c. Finished goods

d. Cost of goods sold

e. None of the above

11. Refer to the previous two questions. The amount of the entry is:

12. The journal entry to transfer costs from finished goods to cost of goods sold includes a debit to which account?

a. Manufacturing overhead

b. Work in process

c. Finished goods

d. Cost of goods sold

e. None of the above

13. The journal entry to transfer costs from work in process to finished goods includes a debit to which account?

a. Manufacturing overhead

b. Work in process

c. Finished goods

d. Cost of goods sold

e. None of the above

14. The journal entry to transfer costs from work in process to finished goods includes a credit to which account?

a. Manufacturing overhead

b. Work in process

c. Finished goods

d. Cost of goods sold

e. None of the above

15. Refer to the previous two questions. The amount of the entry is:

16. The journal entry to transfer costs from finished goods to cost of goods sold includes a debit to which account?

a. Manufacturing overhead

b. Work in process

c. Finished goods

d. Cost of goods sold

e. None of the above

17. The journal entry to transfer costs from finished goods to cost of goods sold includes a credit to which account?

a. Manufacturing overhead

b. Work in process

c. Finished goods

d. Cost of goods sold

e. None of the above

18. Refer to the previous two questions. The amount of the entry is:

19. The journal entry to dispose of over- or under- applied manufacturing overhead includes a debit to which account?

a. Manufacturing overhead

b. Work in process

c. Finished goods

d. Cost of goods sold

e. None of the above

Answer 1