48 1. The entry to adjust for overapplying a) Debit to Cost of Goods Sold. b) Cr

Question

48 1. The entry to adjust for overapplying a) Debit to Cost of Goods Sold. b) Credit Raw Materials c) Credit to Cost of Goods Sold d) Debit Factory Labor o) Both "a" and "e" Chapters 14&15 overhead may include 2. The Goods in Process Inventory account of a manufacturing company that uses s n overhead rate based on direct labor cost has a $4,400 debit balance after all posting is c of the one job still Therefore, the company's overhead application rate is: a) 40%. b)50%. c) 80% d)200%. e) 220% ompleted. The cost sheet in process shows direct material cost of $2,000 and direct labor cost of $800. 3 Which of the following costs would not be included as part of the factory overhead a) The cost of memory chips b) Depreciation of testing equipment c) Wages of factory accountants d) The maintenance costs on the assembly machines e) Cost of small tools used in factory A company's overhead rate is 150% of direct labor cost. Using the folowing ncomplete account. determine the cost of direct materials used. Goods In Process Inventory Finished Goods Inventory_ Beg Bal 12,330 Beg. Bal. 71,200 D.M. D.L. End. Bal. 101,650 290,000 360,330 F.G. End.Bal 42,000 63,500 60,000 a) $260,450 b) $158,800 c) $104,180 d) $102,780 e) $220,450

Explanation / Answer

1) Adjust overapplying overhead

So answer is c) credit to cost of goods sold

2) Overhead = 4400-2000-800 = 1600

Overhead application rate = 1600*100/800 = 200%

So answer is d) 200%

3) Not included in factory overhead

So answer is a) The Cost of memory chips

4)Total manufacturing cost = 101650+290000-71200 = 320450

Direct material used = Total manufacturing cost-Factory overrhead-direct labour

= 320450-60000-40000

Direct material used = 220450

So answer is e) $220450

Date account and explanation debit credit Manufacturing overhead Cost of goods sold

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