Smiley Co. showed the flowing information for March 2021
W.I.P inventory balances 3/1 $5,000 and 3/31 $1,000
Raw materials inventory balances 3/1 $8,000 and 3/31 $4,000
Raw materials purchased during March $72,000
Direct labor during March $80,000
Manufacturing Overhead Application Rate is 200% of direct labor
9) Smileys raw materials used during March was
A) $76,000
B) $72,000
C) $80,000
D) $84,000
10) Smileys manufacturing overhead applied to production during March was
A) $16,000
B) $1,600,000
C) $160,000
D) $1,600
11) Smileys total goods in process cost for March was
A) $321,000
B) $3,210,000
C) $32,100,000
D) $32,100
12) Smileys cost of goods manufactured for March was
A) $32,099,000
B) $320
C) $320,000
D) $32,000
13) Smileys high (200%) overhead application rate indicates a process that
A) Uses many different machines with high depreciation, insurance and maintenance costs
B) Uses no machines at all
C) Has an overpaid factory manager
D) Has solid gold bolts and nuts
14) Smileys low ($1,000) W.I.P inventory balance at 3/31 indicates
A) They finished almost all of the units they worked on during March
B) They had many unfinished units at 3/31
C) They have no idea how to run their business
D) They use too many paper clips
