Question 1 During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5,940 on account, factory labor $7,150 of which $5,800 relates to factory wages payable and $1,350 relates to payroll taxes payable, and utilities payable $2,840. Prepare separate journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan.31 31 31 Question 2 Marquis Company estimates that annual manufacturing overhead costs will be $802,000. Estimated annual operating activity bases are direct labor cost $432,000, direct labor hours 47,800, and machine hours 102,500. Compute the predetermined overhead rate for each activity base. Overhead rate per direct labor cost (Round answers to 2 decimal places, e.g. 110.10%.) % Overhead rate per direct labor hour (Round answers to 2 decimal places, e.g. $10.50.) $ Overhead rate per machine hour (Round answers to 2 decimal places, e.g. $10.50.) $ Question 3 During the first quarter, Roland Company incurs the following direct labor costs: January $46,000, February $51,400, and March $75,000. For each month, prepare the entry to assign overhead to production using a predetermined rate of 85% of direct labor cost. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 Feb. 28 Mar. 31 Question 4 In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $26,540 and Job 11 $37,410. On March 31, Job 10 is sold to the customer for $53,260 in cash. Journalize the entries for the completion of the two jobs and the sale of Job 10. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. (To record the completion of the two jobs) 2. (To record the sale Job 10) 3. (To record the cost of the job sold) Question 5 At December 31, balances in Manufacturing Overhead are Shimeca Company—debit $1,338, Garcia Company—credit $1,051. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Shimeca Company Dec. 31 Garcia Company Dec. 31 Question 6 Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. Case A Case B Case C Direct materials used $  ( ...

1. Question 1
During January, its first month of operations, Knox Company
accumulated the following manufacturing costs: raw materials
$5,940 on account, factory labor $7,150 of which $5,800 relates
to factory wages payable and $1,350 relates to payroll taxes
payable, and utilities payable $2,840.
Prepare separate journal entries for each type of manufacturing
cost. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. Record journal
entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
Jan.31
31

2. 31
Question 2
Marquis Company estimates that annual manufacturing
overhead costs will be $802,000. Estimated annual operating
activity bases are direct labor cost $432,000, direct labor
hours 47,800, and machine hours 102,500.
Compute the predetermined overhead rate for each activity base.
Overhead rate per direct labor cost (Round answers to 2 decimal
places, e.g. 110.10%.)
%
Overhead rate per direct labor hour (Round answers to 2
decimal places, e.g. $10.50.)
$
Overhead rate per machine hour (Round answers to 2 decimal
places, e.g. $10.50.)
$

3. Question 3
During the first quarter, Roland Company incurs the following
direct labor costs: January $46,000, February $51,400, and
March $75,000.
For each month, prepare the entry to assign overhead to
production using a predetermined rate of 85% of direct labor
cost. (Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 31
Feb. 28

4. Mar. 31
Question 4
In March, Stinson Company completes Jobs 10 and 11. Job 10
cost $26,540 and Job 11 $37,410. On March 31, Job 10 is sold
to the customer for $53,260 in cash.
Journalize the entries for the completion of the two jobs and the
sale of Job 10. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
1.

5. (To record the completion of the two jobs)
2.
(To record the sale Job 10)
3.
(To record the cost of the job sold)

6. Question 5
At December 31, balances in Manufacturing Overhead are
Shimeca Company—debit $1,338, Garcia Company—credit
$1,051.
Prepare the adjusting entry for each company at December 31,
assuming the adjustment is made to cost of goods sold. (Credit
account titles are automatically indented when amount is
entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Shimeca Company
Dec. 31
Garcia Company
Dec. 31

7. Question 6
Manufacturing cost data for Orlando Company, which uses a job
order cost system, are presented below.
Indicate the missing amount for each letter. Assume that in all
cases manufacturing overhead is applied on the basis of direct
labor cost and the rate is the same.
Case A
Case B
Case C
Direct materials used
$
(a)
$92,900
$69,000
Direct labor
60,800
142,400
(h)

8. Manufacturing overhead applied
49,248
(d)
(i)
Total manufacturing costs
156,600
(e)
221,700
Work in process 1/1/14
(b)
22,900
18,800
Total cost of work in process
207,900

9. (f)
(j)
Work in process 12/31/14
(c)
13,500
(k)
Cost of goods manufactured
193,500
(g)
229,200
Question 7
Torre Corporation incurred the following transactions.
1.
Purchased raw materials on account $52,840.
2.
Raw Materials of $40,980 were requisitioned to the factory. An
analysis of the materials requisition slips indicated that

10. $7,070 was classified as indirect materials.
3.
Factory labor costs incurred were $59,080, of which
$51,110 pertained to factory wages payable and
$7,970 pertained to employer payroll taxes payable.
4.
Time tickets indicated that $51,290 was direct labor and
$7,790 was indirect labor.
5.
Manufacturing overhead costs incurred on account were
$85,050.
6.
Depreciation on the company’s office building was $9,050.
7.
Manufacturing overhead was applied at the rate of 160% of
direct labor cost.
8.
Goods costing $95,330 were completed and transferred to
finished goods.
9.
Finished goods costing $82,460 to manufacture were sold on
account for $113,210.
Journalize the transactions. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
No.
Account Titles and Explanation
Debit

11. Credit
(1)
(2)
(3)
(4)

12. (5)
(6)
(7)
(8)

13. (9)
(To record the sale)
(To record the cost of the sale)

14. Question 8
Degelman Company uses a job order cost system and applies
overhead to production on the basis of direct labor costs. On
January 1, 2014, Job No. 50 was the only job in process. The
costs incurred prior to January 1 on this job were as follows:
direct materials $ 27,400 , direct labor $ 16,440 , and
manufacturing overhead $ 21,920 . As of January 1, Job No. 49
had been completed at a cost of $ 123,300 and was part of
finished goods inventory. There was a $ 20,550 balance in the
Raw Materials Inventory account.
During the month of January, Deglman Manufacturing began
production on Jobs 51 and 52, and completed Jobs 50 and 51.
Jobs 49 and 50 were also sold on account during the month for $
167,140 and $ 216,460 , respectively. The following additional
events occurred during the month.
1.
Purchased additional raw materials of $ 123,300 on account.
2.
Incurred factory labor costs of $ 95,900 . Of this amount $
21,920 related to employer payroll taxes.
3.
Incurred manufacturing overhead costs as follows: indirect
materials $ 23,290 ; indirect labor $ 27,400 ; depreciation
expense on equipment $ 26,030 ; and various other
manufacturing overhead costs on account $ 21,920 .
4.
Assigned direct materials and direct labor to jobs as follows.
Job No.
Direct Materials

15. Direct Labor
50
$ 13,700
$ 6,850
51
53,430
34,250
52
41,100
27,400
(a)
Calculate the predetermined overhead rate for 2014, assuming
Degelman Company estimates total manufacturing overhead
costs of $ 1,342,600 , direct labor costs of $ 959,000 , and
direct labor hours of 27,400 for the year. (Round answer to the
nearest whole percent, e.g. 25.)
Predetermined overhead rate

16. %