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    Answer: D: Use The Following To Answer Questions 92-95

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    Alyssa Epi
    Kapanga Manufacturing Company uses a job-order costing system. In October, it incurred direct costs of $12,000, $8,000, and $25,000, $10,000, $18,000, $5,000 on Jobs B18, B19, and C11 respectively. Manufacturing overhead is applied at 150% of direct labor cost. Kapanga completed Jobs B18 and B19 in October, selling Job B19.

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    Answer: D: Use The Following To Answer Questions 92-95

    Uploaded by

    Alyssa Epi
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    Kapanga Manufacturing Company uses a job-order costing system. In October, it incurred direct costs of $12,000, $8,000, and $25,000, $10,000, $18,000, $5,000 on Jobs B18, B19, and C11 respectively. Manufacturing overhead is applied at 150% of direct labor cost. Kapanga completed Jobs B18 and B19 in October, selling Job B19.

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    Accounting A

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    Kapanga Manufacturing Company uses a job-order costing system. In October, it incurred direct costs of $12,000, $8,000, and $25,000, $10,000, $18,000, $5,000 on Jobs B18, B19, and C11 respectively. Manufacturing overhead is applied at 150% of direct labor cost. Kapanga completed Jobs B18 and B19 in October, selling Job B19.

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    Download as docx, pdf, or txt
    90 views3 pages

    Answer: D: Use The Following To Answer Questions 92-95

    Uploaded by

    Alyssa Epi
    Kapanga Manufacturing Company uses a job-order costing system. In October, it incurred direct costs of $12,000, $8,000, and $25,000, $10,000, $18,000, $5,000 on Jobs B18, B19, and C11 respectively. Manufacturing overhead is applied at 150% of direct labor cost. Kapanga completed Jobs B18 and B19 in October, selling Job B19.

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    of 3

    Kapanga Manufacturing Company uses a job-order costing system and started the month of October

    with a zero balance in its work in process and finished goods inventory accounts. During October,
    Kapanga worked on three jobs and incurred the following direct costs on those jobs: Job B18 Job B19
    Job C11

    Direct materials ............................. $12,000 $25,000 $18,000

    Direct labor .................................... $8,000 $10,000 $5,000

    Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October,
    Kapanga completed Jobs B18 and B19 and sold Job B19.

    90. What is Kapanga's cost of goods manufactured for October?

    A) $ 50,000

    B) $ 55,000

    C) $ 78,000

    D) $ 82,000

    Answer: D Level: Medium LO: 5,6

    91. What is Kapanga's work in process inventory balance at the end of October?

    A) $23,000

    B) $30,500

    C) $32,000

    D) $43,000

    Answer: B Level: Medium LO: 5,6

    Use the following to answer questions 92-95:

    Dillon Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of
    direct labor cost. Any under or overapplied overhead cost is closed out to Cost of Goods Sold at the end
    of the month. During May, the following transactions were recorded by the company:

    Raw materials (all direct materials):

    Purchased during the month ........................................ $38,000

    Used in production ...................................................... $35,000

    Labor:
    Direct labor hours worked during the month .............. 3,150

    Direct labor cost incurred ............................................ $30,000

    Manufacturing overhead cost incurred (total) ................ $24,500

    Inventories:

    Raw materials (all direct), May 31 .............................. $8,000

    Work in process, May 1 .............................................. $9,000

    Work in process, May 31 ............................................ $12,000*

    *Contains $4,400 in direct labor cost.

    92. The balance on May 1 in the Raw Materials inventory account was:

    A) $11,000

    B) $5,000

    C) $7,000

    D) $9,000

    Answer: B Level: Medium LO: 6

    93. The amount of direct materials cost in the May 31 Work in Process inventory account was:

    A) $7,600

    B) $2,000

    C) $6,300

    D) $4,300

    Answer: D Level: Hard LO: 6

    94. The entry to dispose of the under or overapplied overhead cost for the month would include:

    A) a debit of $2,000 to the Manufacturing Overhead account

    B) a credit of $2,500 to the Manufacturing Overhead account

    C) a debit of $2,000 to Cost of Goods Sold

    D) a credit of $2,500 to Cost of Goods Sold

    Answer: C Level: Hard LO: 8


    95. The Cost of Goods Manufactured for May was:

    A) $84,500

    B) $95,000

    C) $75,500

    D) $81,500

    Answer: A Level: Medium LO: 6

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