1. The Thomlin Company forecasts that total overhead for the current year will be $11,514,000 with 159,000 total machine hours. Year to date, the actual overhead is $7,788,000 and the actual machine hours are 97,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is
Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.
a.$804,000 overapplied
b.$1,206,000 overapplied
c.$1,206,000 underapplied
d.$804,000 underapplied
2.
The journal entry to record the transfer of 1,200 units of part number 1177 with a value of $1.20 each, to work in process is
a.
Materials | 1,440 | |
Work in Process | 1,440 |
b.
Work in Process | 1,440 | |
Factory Overhead | 1,440 |
c.
Work in Process | 1,440 | |
Cash | 1,440 |
d.
Work in Process | 1,440 | |
Materials | 1,440 |
3. Selected accounts with some amounts omitted are as follows
Work in Process | |||||
Oct. 1 | Balance | 24,200 | Oct. 31 | Finished goods | X |
31 | Direct materials | 90,900 | |||
31 | Direct labor | 190,900 | |||
31 | Factory overhead | X |
Finished Goods | |||||
Oct. 1 | Balance | 14,100 | |||
31 | Goods finished | 323,700 |
If the balance of Work in Process on October 31 is $199,300, what was the amount of factory overhead applied in October?
a.$90,900
b.$190,900
c.$414,400
d.$217,000
4. The controlling account for the job cost sheets is
a.Work in Process
b.Cost of Goods Sold
c.Finished Goods
d.Materials
1) Predetermine overhead rate = 11514000/159000 = 72
Overhead applied = 72*97000 = 6984000
Actual overhead = 7788000
Under applied overhead = 804000
So answer is d.$804,000 underapplied
2) Journal entry
Work in process (1200*1.2) | 1440 | |
Material | 1440 | |
So answer is d)
3) Overhead applied = 199300+323700-24200-90900-190900 = 217000
So answer is d) $217000
4) The controlling account for the job cost sheets is
So answer is c) FINished goods inventory
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