1. When the beginning of Work in Process inventory is $15,000, and during the period, $40,000 of direct materials and $30,000 of direct labor are added to production, what is the ending Work in Process inventory if overhead applied is $25,000?
A: $110,000
2. Job 195 has accumulated 150 direct labor hours at $18 per hour and $1,500 in direct materials. If the predetermined overhead rate is $22 per direct labor hour, what is the overhead applied to Job 195?
A: $3,300
3. Job order costing is a method of cost accumulation that is used for items or batches of items for customers with different orders. In which industries or businesses is job order costing most commonly used?
A: construction industry
4. Factory overhead is applied to jobs in production at an estimated rate based on the number of machine hours. The estimated factory overhead for the year is $63,000 and the estimated number of machine hours for the year is 1,600. What is the predetermined overhead rate?
A: $39.38
5. All of the following are the costs of production accumulated in the Work in Process account except:
A: Material Inventory
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7. Materials are first requisitioned and acquired prior to being used in production. Based on the information below, indicate the type of account and whether the entry is increased or decreased the account.
8. Based on the information below, indicate the type of account and whether the entry is increased or decreased the account.
A:
9. Which method of cost accumulation is used for items or batches of items where each order will differ in size, layout, wood choices, installation costs, and customer preference?
A: Job order costing
10. Job 195 requires 200 direct labor hours at $15 per hour and $2,000 in direct materials. If the predetermined overhead rate is $20 per direct labor hour, what is the total cost of Job 195?
A: $9,000
11. Assume the total estimated factory overhead is $5,000. Overhead is applied to jobs using a predetermined factory overhead rate that uses an activity base of 250 direct labor hours. Provide the factory overhead rate per direct labor hour.
A: $20
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15. ABC Business estimates total manufacturing overhead costs for the year to be $500,000 and direct labor hours to be 10,000. What is the predetermined factory overhead rate per direct labor hour?
A: $50