ACC121 - CH. 14-16 Quick Review

The board of directors has primary responsibility for daily management functions.

• True

• False

Oriole Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $237,500. Estimated machine usage is 2,500 hours. The company assigns overhead based on machine hours. Job No. 551 used 90 machine hours.

What is the Predetermined overhead rate?

Answer explanation

The predetermined overhead for Washburn Company is:$237,500 ÷ 2,500 hours = $95 per machine hour($237,500 ÷ 2,500 hrs. = $95/hr.)(Expected MOH ÷ Expected MH = Predet. OH rate)

DM = $33,600

DL = $51,200

MO = $42,000

What is the total Manufacturing Cost?

How do you journalize "Purchased Raw Materials of $22,400 on account"?

• (DR) Raw Material Inventory - 22,400; (CR) MO - 22,400

• (DR) Raw Material Inventory - 22,400; (CR) Direct Labor - 22,400

• (DR) Raw Material Inventory - 22,400; (CR) Direct Materials - 22,400

• (DR) Raw Material Inventory - 22,400; (CR) Accounts Payable - 22,400

For Pharoah Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Pharoah incurred $134,000 of factory labor costs, of which $113,900 is direct labor and $20,100 is indirect labor. Actual overhead incurred was $154,100.

Compute the manufacturing overhead applied for the month.

Answer explanation

Manufacturing overhead applied = 130% x $113,900 = $148,070

($113,900x130% = $148,070)(Actual DL cost x Predet. OH rate = Applied OH)

The three management functions are:

The Assembly Department for Oriole has the following production data for the current month.

Beginning Work in Process - 0

Units Completed and Transferred Out - 22,000

Ending Work in Process - 11,000

Materials are entered at the beginning of the process. The ending work in process units are 70% complete as to conversion costs.

What is the Equivalent Units of Production for the Conversion Cost.

Answer explanation

Since ending work in process is only 70% complete as to conversion costs, the equivalent units of ending work in process for conversion costs are 7,700 (70% × 11,000 units).22,000 units + 7,700 units = 29,700 equivalent units of production for conversion costs.

What is a key difference between job order and process costing?

Select two answers

• Job costing assigns cost to each job

• Process costing assigns cost to each job

• Job costing assigns cost to the entire process

• Process costing assigns cost to processes or departments

Which costing method was easier for you to calculate?

• Job Costing

• Process Costing

Manufacturing cost consist of -

• Overhead only

• Raw materials & Labor

• Direct Materials, Direct Labor, & Manufacturing Overhead

• All cost of a product