1. agale combines, inc. has $40,000 of ending finished goods

1.        1. Agale Combines, Inc. has $40,000 of ending finished goods inventory as of December 31, 2014. If beginning finished goods inventory was $25,000 and cost of goods sold was $75,000, how much would Agale report for cost of goods manufactured?

a.        $90,000

b.        $115,000

c.        $15,000

2.       2. Duggan Company reported total manufacturing costs of $305,000, manufacturing overhead totaling $58,000, and direct materials totaling $62,000.  How much is direct labor cost?

a.        $185,000

b.        $425,000

c.        $120,000

3.        3. orm’e Company applies overhead on the basis of 130% of direct labor cost. Job No. 190 is charged with $140,000 of direct materials costs and $208,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

a.        $348,000

b.        $508,000

c.        $618,000

4.        4. Which of the following is not viewed as part of accumulating manufacturing costs in a job order cost system?

a.        Cost of goods sold is recognized

b.        Factory labor is incurred

c.        Raw materials are purchased

5.        5. Roscoe Company incurred direct materials costs of $500,000 during the year. Manufacturing overhead applied was $540,000 and is applied based on direct labor costs. The predetermined overhead rate is 75%. How much are Roscoe Company’s total manufacturing costs for the year?

a.        $1,445,000

b.        $1,040,000

c.        $1,760,000

6.        6. reeWater Company provided the following information from its accounting records for 2014:

Expected production         50,000 labor hours

Actual production               45,000 labor hours

Budgeted overhead           $1,257,500

Actual overhead                 $4,449,900

How much is the overhead application rate if Freewater Company bases it on direct labor hours?

a.        $29.00 per hour

b.        $25.15 per hour

c.        $27.94 per hour

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