Question

Assume that a company closes any remaining balances in the manufacturing overhead control account to the cost of goods sold account. If the company has over applied its manufacturing overhead the company would record which of the following entries:

DR cost of goods sold CR manufacturing overhead control

DR work-in-process CR cost of goods sold

DR manufacturing overhead control CR cost of goods sold

DR cost of goods sold CR cost of goods manufactured

2.The Whitestone Company uses a job-order costing system. The predetermined overhead rate for fixed manufacturing overhead is based on direct labour hours. The company has provided the following estimates:

Direct labour hours 4,000
Variable manufacturing overhead $14,000
Fixed manufacturing overhead $10,000
Direct labour dollars $48,000

The company will use a predetermined fixed manufacturing overhead rate of:

$2.50 per direct labour hour

$12.00 per direct labour hour

$7.00 per direct labour dollar

$6.00 per direct labour dollar

3.The CFO for Tangent Transit would like to improve its efficiency of handling of customer inquiries on orders. He created an online customer inquiry utility that allows customers to access and track their orders. Under which of the efficiency improvement steps will this fall?

Define a process map for each activity/process chosen.

Identify value and non-value-adding activities.

Create ways to eliminate all non-value-adding activities.

Seek ways to improve value-adding-activities.

4.

he CFO for Tangent Shipping would like to improve its efficiency of processing customer orders. Which of the following is not part of the 3 steps for improving efficiency?

Develop a process map for each activity/process chosen.

Identify value and non-value-adding activities.

Eliminate all non-value-adding activities.

Seek ways to improve value-adding activities.

Answer 1

Note : As HOMEWORKLIB RULES honor code only one question can be asked at a time hence i have answered question no. 1 hope you understand, for answer of rest of the question please post them again

Answer : 1

DR manufacturing overhead control
CR cost of goods sold

As

When manufacturing overhead will be over aplied in that case manufacturing overhead controll account will show credit balance which will be closed by transferring the amount to the cost of goods sold account. For this Manufacturing overhead control account will be debited and cost of goods sold account will be credited. Hence our answer is

DR manufacturing overhead control
CR cost of goods sold

Answer 2 : $2.50 per direct labor hour

Calculated as

Direct labor hours = 4000

Fixed manufacturing overhead $10,000

Predetermined fixed manufacturing overhead rate = Fixed manufacturing overhead/Direct labor hours

= $10000/4000

= $2.50 per direct labor hours