ACC 242 Exam 1
EXAM 1 – FORM A
ACC 242
Fall, 2013 Name__________________________________
1. The following information relates to a job cost system in a factory:
For the year Estimated Actual
Factory Overhead $600,000 $635,000
Direct Labor $500,000 $525,000
Direct Materials $500,000 $520,000
Direct Labor Hours 300,000 hrs. 290,000 hrs.
The factory uses a predetermined overhead rate per direct labor hour to apply factory overhead. During the year jobs which cost $1,200,000 were completed, and finished goods costing $1,000,000 were sold. No inventories were on hand at the beginning of the year.
Determine the ending balance of Work-In-Process:
a. $400,000
b. $425,000
c. $480,000
d. $580,000
2. At the beginning of 2013, Sparky Company had direct materials inventory totaling $40,000 and Work in Process inventory with an accumulated cost of $60,000. During 2013, Sparky purchased $200,000 of direct materials and incurred total production costs (including direct materials costs, direct labor costs, and applied overhead costs) of $280,000. At the end of 2013, Sparky’s physical inventories revealed that direct materials costing $48,000 and Work in Process with an accumulated cost of $100,000 were on hand at year-end. Manufacturing overhead was applied at three times the amount of Direct Labor cost.
Determine the manufacturing overhead applied during 2013.
a. $192,000
b. $ 88,000
c. $ 66,000
d. $ 58,667
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT THREE (3) QUESTIONS:
Sparky, Inc. produced 800 commercial-grade outdoor gas heaters in November. There were no beginning inventories on hand at November 1 and all units started in November were completed by November 30th. By the end of the month, 500 heaters had been sold. Costs for the period were:
Direct materials used $42,000 Direct labor $36,000 Manufacturing overhead applied $74,000 Selling
ACC 242
Fall, 2013 Name__________________________________
1. The following information relates to a job cost system in a factory:
For the year Estimated Actual
Factory Overhead $600,000 $635,000
Direct Labor $500,000 $525,000
Direct Materials $500,000 $520,000
Direct Labor Hours 300,000 hrs. 290,000 hrs.
The factory uses a predetermined overhead rate per direct labor hour to apply factory overhead. During the year jobs which cost $1,200,000 were completed, and finished goods costing $1,000,000 were sold. No inventories were on hand at the beginning of the year.
Determine the ending balance of Work-In-Process:
a. $400,000
b. $425,000
c. $480,000
d. $580,000
2. At the beginning of 2013, Sparky Company had direct materials inventory totaling $40,000 and Work in Process inventory with an accumulated cost of $60,000. During 2013, Sparky purchased $200,000 of direct materials and incurred total production costs (including direct materials costs, direct labor costs, and applied overhead costs) of $280,000. At the end of 2013, Sparky’s physical inventories revealed that direct materials costing $48,000 and Work in Process with an accumulated cost of $100,000 were on hand at year-end. Manufacturing overhead was applied at three times the amount of Direct Labor cost.
Determine the manufacturing overhead applied during 2013.
a. $192,000
b. $ 88,000
c. $ 66,000
d. $ 58,667
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT THREE (3) QUESTIONS:
Sparky, Inc. produced 800 commercial-grade outdoor gas heaters in November. There were no beginning inventories on hand at November 1 and all units started in November were completed by November 30th. By the end of the month, 500 heaters had been sold. Costs for the period were:
Direct materials used $42,000 Direct labor $36,000 Manufacturing overhead applied $74,000 Selling