Question

1. Boursaw Corporation has provided the following data concerning last month’s operations.

Purchases of raw materials	$	33,000
Indirect materials included in manufacturing overhead	$	4,000
Direct labor cost	$	58,000
Manufacturing overhead applied to Work in Process	$	78,000
Underapplied overhead	$	5,000

	Beginning		Ending
Raw materials inventory	$	10,000	$	15,000
Work in process inventory	$	56,000	$	72,000
Finished goods inventory	$	41,000	$	49,000

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Multiple Choice

• $136,000

• $141,000

• $144,000

• $185,000

2. Boursaw Corporation has provided the following data concerning last month’s operations.

Purchases of raw materials	$	33,000
Indirect materials included in manufacturing overhead	$	4,000
Direct labor cost	$	58,000
Manufacturing overhead applied to Work in Process	$	78,000
Underapplied overhead	$	5,000

	Beginning		Ending
Raw materials inventory	$	10,000	$	15,000
Work in process inventory	$	56,000	$	72,000
Finished goods inventory	$	41,000	$	49,000

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured?

Multiple Choice

• $38,000

• $24,000

• $33,000

• $43,000

3. The following accounts are from last year’s books at Sharp Manufacturing:

Raw Materials
Bal	0	(b)	156,000
(a)	169,000
	13,000

Work In Process
Bal	0	(f)	518,000
(b)	133,000
(c)	170,000
(e)	215,000
	0

Finished Goods
Bal	0	(g)	470,000
(f)	518,000
	48,000

Manufacturing Overhead
(b)	23,000	(e)	215,000
(c)	27,000
(d)	158,000
			7,000

Cost of Goods Sold
(g)	470,000

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?

Multiple Choice

• $255,500

• $463,000

• $518,000

• $470,000

4. The following accounts are from last year’s books at Sharp Manufacturing:

Raw Materials
Bal	0	(b)	155,000
(a)	166,500
	11,500

Work In Process
Bal	0	(f)	514,000
(b)	132,500
(c)	169,000
(e)	212,500
	0

Finished Goods
Bal	0	(g)	465,000
(f)	514,000
	49,000

Manufacturing Overhead
(b)	22,500	(e)	212,500
(c)	26,500
(d)	157,000
			6,500

Cost of Goods Sold
(g)	465,000

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?

Multiple Choice

• $6,500 underapplied

• $6,500 overapplied

• $26,500 underapplied

• $26,500 overapplied

Answer 1

Question 1

Correct answer----------$136,000

Working

Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$ 10,000
Raw material Purchased	$ 29,000
Raw material available for use	$ 39,000
Less: Raw material Inventory Ending	$ 15,000
Direct Material Used		$ 24,000
Direct labor		$ 58,000
Total Manufacturing overheads applied		$ 78,000
Total manufacturing Cost During the month		$ 160,000
Add: Work in process Beginning		$ 56,000
Total Work in Process		$ 216,000
Less: Work in progress Ending		$ 72,000
Cost of Goods Manufactured		$ 144,000

.

Schedule of cost of goods sold
Beginning Finished Goods Inventory		$ 41,000
Add: Cost of goods manufactured		$ 144,000
Goods Available for sale		$ 185,000
Less :Ending Finished goods Inventory		$ 49,000
Unadjusted Cost of Goods Sold		$ 136,000