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1. The following events took place at a manufacturing company for the current year:

(1) Purchased $95,000 in direct materials.

(2) Incurred labor costs as follows: (a) direct, $56,000 and (b) indirect, $13,600.

(3) Other manufacturing overhead was $107,000, excluding indirect labor.

(4) Transferred 80% of the materials to the manufacturing assembly line.

(5) Completed 65% of the Work-in-Process during the year.

(6) Sold 85% of the completed goods.

(7) There were no beginning inventories.

What is the value of the ending Finished Goods Inventory?

a.) $13,261.50.

b.) $24,628.50.

c.) $26,481.00.

d.) $164,190.00.

2. Under Eagle Co.'s job order costing system, manufacturing overhead is applied to Work-in-Process using a predetermined annual overhead rate. During February, Eagle's transactions included the following:

	Direct materials issued to production	$	90,000
	Indirect materials issued to production		8,000
	Manufacturing overhead incurred		125,000
	Manufacturing overhead applied		113,000
	Direct labor costs		107,000

Eagle had neither beginning nor ending inventory in Work-in-Process Inventory. What was the cost of jobs completed in February? (CPA adapted)

a.) $302,000.

b.) $310,000.

c.) $322,000.

d.) $330,000.

3.Demur Inc., a manufacturing company, has provided the following data for the month of April. The balance in the Work-in-Process inventory account was $10,000 at the beginning of the month and $22,000 at the end of the month. During the month, the company incurred direct materials cost of $63,000 and direct labor cost of $39,000. The actual manufacturing overhead cost incurred was $40,000. The manufacturing overhead cost applied to Work-in-Process was $43,000. The cost of goods manufactured for April was:

a.) $133,000.

b.) $142,000.

c.) $145,000.

d.) $130,000.

4.The predetermined overhead rate for manufacturing overhead for 2016 is $4.00 per direct labor hour. Employees are expected to earn $5.00 per hour and the company is planning on paying its employees $100,000 during the year. However, only 75% of the employees are classified as "direct labor." What was the estimated manufacturing overhead for 2016?

a.) $60,000.

b.) $75,000.

c.) $80,000.

d.) $93,750.

5.Reyes Corporation applies overhead using a normal costing approach based upon machine-hours. Budgeted factory overhead was $266,400, budgeted machine-hours were 18,500. Actual factory overhead was $287,920, actual machine-hours were 19,050. How much is the over- or underapplied overhead?

a.) $21,520 underapplied.

b.) $13,600 underapplied.

c.) $7,920 overapplied.

d.) $0.

6.Faucette Corporation has provided the following data concerning manufacturing overhead for January:

Top of Form

Actual manufacturing overhead incurred	$	52,000
Manufacturing overhead applied to Work-in-Process	$	75,000

The company's Cost of Goods Sold was $369,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?

a.) Manufacturing overhead was underapplied by $23,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $392,000.

b.) Manufacturing overhead was underapplied by $23,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $346,000.

c.) Manufacturing overhead was overapplied by $23,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $346,000.

d.) Manufacturing overhead was overapplied by $23,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $392,000.

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