Question

1.In determining total manufacturing costs on the cost of goods manufactured schedule,

a.actual manufacturing overhead costs appear as a deduction.

b.manufacturing overhead applied is added to direct materials and direct labor.

c.ending work in process inventory is deducted from beginning work in process inventory.

d.beginning work in process inventory should have a zero balance.

2.Bonita Industries applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $450000 of direct materials costs and $300000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

a.$1050000

b.$750000

c.$900000

d.$1200000

3.Vaughn Manufacturing's accounting records reflect the following inventories:

	Dec. 31, 2020		Dec. 31, 2019
Raw materials inventory	$350000		$290000
Work in process inventory	300000		160000
Finished goods inventory	190000		150000

During 2020, $840000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000.
The total raw materials available for use during 2020 for Vaughn Manufacturing is

a.$1190000.

b.$780000.

c.$700000.

d.$1130000.

Answer 1

Answer:
1)
In determining Total manufacturing costs on the cost of goods manufactured schedule,
Manufacturing overhead applied is added to direct materials and direct labor
Option (b) is Correct
2)
Particulars	Amount (in $ )
Direct materials costs	$ 450,000
Direct Labor costs ( $ 300,000 / 200% )	$ 150,000
Manufacturing overhead Costs	$ 300,000
Total manufacturing costs for Job No. 305	$ 900,000
Option ( C) is Correct
3)
Particulars	Amount (in $ )
Beginning Raw materials inventory	$ 290,000
Add: Raw material purchases	$ 840,000
The total raw materials available for use for 2020	$ 1,130,000
Option (d) is Correct