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?
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?
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
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?
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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