1.Payne Company developed the following data for the current year:

Beginning work in process inventory $68,000

Direct materials used 104,000

Actual overhead 88,000

Overhead applied 92,000

Cost of goods manufactured 450,000

Total manufacturing costs 428,000

How much is Payne Company's ending work in process inventory for the year?

 

2.Barger-Volvov Company had the following information at December 31, 2016:

Finished goods inventory, January 1, 2016: $15,000

Finished goods inventory, December 31, 2016: $21,000

If the cost of goods manufactured during the year amounted to $332,500 and annual sales were $499,000, how much is the amount of gross profit for the year?

 

3.Order Online views machine hours as the best activity base for its manufacturing overhead. The estimate of overhead costs for the year for its jobs was $205,000. The company used 1,000 hours of processing on its Job B12 during the period and incurred overhead costs totalling $210,000. The budgeted machine hours for the year totalled 20,000. How much overhead should be applied to Job B12?

 

4.During 2016, Crema Manufacturing expected Job 59 to cost $300,000 of overhead, $500,000 of material, and $200,000 in labour. Crema applied overhead based on direct labour cost. Actual production required an overhead cost of $280,000, $550,000 in materials used; and $220,000 in labour. All of the goods were completed. How much is the amount of over/under applied overhead?

 

Answer rating: 100% (QA)

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