CHAPTER 2

1. B 11. B 21. A 31. C 41. B

2. D 12. C 22. D 32. D 42. B
3. D 13. B 23. A 33. B 43. A
4. D 14. B 24. B 34. C 44. B
5. B 15. C 25. D 35. D 45. A
6. B 16. D 26. A 36. A 46. B
7. D 17. A 27. A 37. A 47. D
8. D 18. B 28. B 38. D
9. B 19. B 29. D 39. B
10. B 20. C 30. C 40. B

#23
Direct Materials 50,000
Manufacturing Overhead Applied 80,000
Direct Labor Cost 60,000
TOTAL 190,000

#24
Total overhead budget 63,000
Direct Labor hours 9,000
Predetermined Rate 7
Labor hours incurred 900
Factory Overhead Applied 6300

#25
Beg. Materials Inv 20,000
Materials Issued 9,000
End. Materials Inv 11,000

#26
Actual Overhead 6,000
Applied Overhead 6,300
Over Applied (300)

#27
Dept A Dept B Total
Direct Materials 25,000 5,000 30,000
Direct Labor 20,000 30,000 50,000
Factory Overhead 40,000 15,000 55,000
Total 85,000 50,000 135,000

#28
Direct Materials Used 4,200
Direct Labor 2,400
Applied Factory Overhead 3,000
Total 9,600

#29
Applied Overhead 36,000
Actual Overhead 38,000
Under Applied (2,000)

#30
Direct Labor Dir. Material FOH Total
Finished Goods 20000 80000 10000 110000
Work in Process 30000 120000 15000 165000

#31
Overapplied Overhead 45,000
Pro rate 80.00%
Deduction COGS 36,000
COGS 800,000
COGS reported 764,000

#40
Balance 4,000
DM used 24,000
DL used 16,000
FOH applied 12,800
To FG (48,000)
WIP balance 8,800
Direct Labor (2,000)
Overhead (1,600)
Cost of DM charged to Job #5 5,200

#41
Direct Materials 90,000
Overhead Applied 113,000
Direct Labor 107,000
Cost of Jobs Completed 310,000

#42
Variable Cost 33,000
Cost of External Design 7,750
Minimum Acceptable Price 40,750

#43
Total Manufacturing Cost 220,000
Decrease in WIP 20,000
Increase in Finished Goods (45,000)
COGS 195,000

Total Manufacturing Cost 220,000

Raw Materials used 84,000
Conversion Cost 136,000

Direct Labor 85,000

Factory Overhead (60%) 51,000
Conversion Cost 136,000

#44
Cost of Good Sold 204,300
Finished goods - end 90,200
CGAFS 294,500
Finished goods - beg. (81,500)
COGM 213,000
WIP - end 62,000
Total WIP 275,000
WIP - beg. (55,000)
Total Manufacturing Cost 220,000

Raw Mat - beg 48000

Purchases 60000
Raw mat avail for use 108000
Raw Mat - end -40000
Raw Mat used 68000
Direct Labor 80000
Factory Overhead 72000
Manufacturing Cost 220000

#45
Direct Materials 35,000
Direct Labor 20,000
Factory Overhead 16,000
Total Cost 71,000

#46
Direct Materials 45,000
Direct Labor 25,000
Factory Overhead 20,000
Total Cost 90,000
#47
Direct Materials 30000
Direct Labor 35000
Factory Overhead 28000
Total Cost 93000