uestion 21 (4 points) Company X estimates that it will use 7,000 direct labor ho

Question

uestion 21 (4 points)

Company X estimates that it will use 7,000 direct labor hours, and it will incur total Factory Overhead costs of $21,000.  Upon completion of the job, it was determined that the company actually used 6,239 direct labor hours. Using the predetermined factory overhead rate, the company prepare the journal entry below: ________________.

Question 21 options:

Debit Work in Process $21,000; Credit FOH $21,000

Debit Work in Process $18,717; Credit FOH $18,717

Debit FOH $18,717; Credit Work in Process $18,717

None of the above

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Question 22 (4 points)

Company H produced 8,125 units at a total cost of $40,625 and transferred them to finished goods inventory. On January 3, 2013, Company H sold 40,000 units to a vendor on account for $400,000. The company should record the entry below: _______________________.

Question 22 options:

Debit Accounts Receivable $400,000; Credit Sales $400,000; Debit Cost of Goods Sold $200,000; Credit Finished Goods $200,000

Debit Accounts Receivable $400,000; Credit Sales $400,000; Debit Cost of Goods Sold $400,000; Credit Finished Goods $400,000

Debit Accounts Payable $400,000; Credit Sales $400,000; Debit Cost of Goods Sold $200,000; Credit Finished Goods $200,000

None of the above

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Question 23 (5 points)

As of December 31, 2011, Company G reported Sales totaling $30,000. Merchandise Available for Sale totaling $10,000. Cost of Merchandise Sold was $4,000. Ending inventory for Company G was _______________________.

Question 23 options:

$6,000

$14,000

$20,000

None of the above

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Question 24 (3 points)

________________________ develops short-term actions for managing the day-to-day operations of the company.

Question 24 options:

Operational Planning

Strategic Planning

Strategies

None of the above

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Question 25 (3 points)

The Job Order and Process Cost Systems both use the periodic inventory systems for materials, work in process, and finished goods.

Question 25 options:

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Question 26 (3 points)

The primary objective of lean manufacturing is to increase the speed and quality, while reducing the cost of operations.

Question 26 options:

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Question 27 (3 points)

Steel totaling $7,089 was requisitioned from the storeroom for the Cutting Department using the process cost system. The company should ________________.

Question 27 options:

Debit Work in Process - Cutting Department $7,089; Credit Raw Materials $7,089

Debit Raw Materials $7,089; Credit Cash $7,089

Debit Raw Materials $7,089; Credit Work in Process - Cutting Department $7,089

None of the above

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Question 28 (3 points)

Working in Process totaling $6,234 was transferred from Department M to Department N. The company should _______________________.

Question 28 options:

Debit Work in Process - Department M $6,234; Credit Work in Process - Department N $6,234

Debit Work in Process - Department N $6,234; Credit Raw Materials $6,234

Debit Work in Process - Department N $6,234; Credit Work in Process - Department M $6,234

None of the above

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Question 29 (5 points)

The fiscal year for Company T begins in January and ends in December. The Financial Statements for Company T for 2011 reported the totals below:

     $7,000

The Gross Profit for Company T for 2011 is _________________________.

Question 29 options:

$15,000

$7,000

$8,000

None of the above

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Question 30 (4 points)

Company X estimates that it will use 7,000 direct labor hours, and it will incur total Factory Overhead costs of $21,000. The company will sell the finished goods for $5.00 per unit. The predetermined factory overhead rate is ________________.

Question 30 options:

$3.00

$5.00

$0.33

None of the above

A)

Debit Work in Process $21,000; Credit FOH $21,000

B)

Debit Work in Process $18,717; Credit FOH $18,717

C)

Debit FOH $18,717; Credit Work in Process $18,717

D)

None of the above

Explanation / Answer

Dear Student, only one question is allowed at a time.

Q 21)

The overhead absorption rate per direct labor hour is as follows:

Overhead rate = Overhead Cost / Direct labor hour

= $ 21,000 / 7,000

= $ 3 per direct labor hour.

This overhead rate will be applied on the basis of actual direct labor hours used and then will be debited to Work in process.

Overhead applied = Actual labor hours x Overhead rate

= 6,239 x $ 3

= $ 18,717

The journal entry will be B that is "Debit Work in Process $18,717; Credit FOH $18,717"

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