Accounting 225 Quiz Section #4

Chapter 3-1 Class Exercises

1. Loraine Company applies manufacturing overhead to jobs using a predetermined
overhead rate of 70% of direct labor cost. During August, the following transactions were
recorded by the company:

a) Manufacturing Overhead allocated to WIP in August was:

b) The Cost of Goods Manufactured for August was:

Accounting 225 Quiz Section #4

Chapter 3-1 Class Exercises
2. Dasilva Company had only one job in process on May 1. The job had been charged with
$1,400 of direct materials, $6,192 of direct labor, and $5,712 of manufacturing overhead
cost. The company assigns overhead cost to jobs using the predetermined overhead rate
of $11.90 per direct labor-hour. During May, the following activity was recorded:

Raw materials consist solely of items that are classified as direct materials.
a) The balance in the raw materials inventory account on May 30 was:

b) Manufacturing Overhead allocated to WIP in May was:

c) The cost of goods manufactured for May was:

Accounting 225 Quiz Section #4

Chapter 3-1 Class Exercises
3. Lund Company applies manufacturing overhead to jobs using a predetermined overhead
rate of 95% of direct labor cost. During March, the following transactions were recorded
by the company:
Raw Materials:
Purchased
$40,000
Used (75% Direct Materials)
$36,000
Labor:
DL Hours Worked
2,500
Direct Labor Cost
$20,000
Indirect Labor Cost
$5,500
Manufacturing Overhead:
Total MOH Incurred
$17,000
Inventories:
Raw Materials (3/31)
$7,500
WIP (3/1)
$10,500
WIP (3/31)
$14,000 **Contains $5000 of DL Cost
Finished Goods (3/1)
$11,000
Finished Goods (3/31)
$5,000
a) Complete cost flows for March using T-Accounts for RM, WIP, FG, and MOH.

b) The Cost of Goods Manufactured for March was _____________

c) The Cost of Goods Sold for March was _____________
d) How much MOH incurred was not indirect materials? _______________
e) The amount of Direct Materials cost in the March 31 WIP balance was
________________