7) Brand Corporation uses a job-order costing system with a single plantwide pre

Question

7) Brand Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $225,700, variable manufacturing overhead of $3.00 per machine-hour, and 37,000 machine-hours. The company has provided the following data concerning Job A424 which was recently completed:

Number of units in the job

20

Total machine-hours

80

Direct materials

$

910

Direct labor cost

$

1,820

The unit product cost for Job A424is closest to: (Round your intermediate calculations to 2 decimal places.)Rechecks 2017-06-22

Multiple Choice

Top of Form

$136.50

$34.12

$43.23

$172.90 Bottom of Form

8) Compute the amount of raw materials used during November if $37,000 of raw materials were purchased during the month and if the inventories were as follows:

Inventories

Balance
November 1

Balance
November 30

Raw materials

$

9,800

$

5,400

Work in process

$

7,400

$

8,900

Finished goods

$

11,400

$

13,400

Multiple Choice

Top of Form

$38,500

$37,900

$35,400

$41,400

9) Brand Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $63,000 and at the end of the month was $31,100. The cost of goods manufactured for the month was $217,500. The actual manufacturing overhead cost incurred was $58,300 and the manufacturing overhead cost applied to Work in Process was $62,400. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:

Multiple Choice

Top of Form

$245,300

$185,600

$249,400

$217,500

10) Brand, Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $40,000 at the beginning of the month and $26,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $58,600 and direct labor cost of $33,400. The actual manufacturing overhead cost incurred was $54,800. The manufacturing overhead cost applied to Work in Process was $54,600. The cost of goods manufactured for June was:

Rechecks 2017-09-15

Multiple Choice

Top of Form

$160,800.

$160,600.

$146,600.

$146,800.

Number of units in the job

20

Total machine-hours

80

Direct materials

$

910

Direct labor cost

$

1,820

Explanation / Answer

1) Total job cost :

Overhead rate = (225700/37000)+3 =

So answer is d) $172.90

2) Raw material used = 9800+37000-5400 = $41400

So answer is d) $41400

3) Unadjusted cost of goods sold = 63000+217500-31100 = 249400

Overapplied overhead = 58300-62400 = 4100

Adjusted cost of goods sold = 249400-4100 = 245300

So answer is a) $245300

4) Total manufacturing cost = 58600+33400+54600 = 146600

Cost of goods manufactured = 40000+146600-26000 = 160600

So answer is b) $160600

Direct material 910 Direct labour 1820 Overhead applied (9.1*80) 728 Total 3458 Unit 20 Unit cost 172.90

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