Question

1. The Thomlin Company forecasts that total overhead for the current year will be $11,514,000 with...

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

Homework Answers

Answer #1

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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