79. The entry to record the flow of direct labor costs into production in a job order cost accounting system is: A. debit Factory Overhead, credit Work in Process B. debit Finished Goods, credit Wages Payable C. debit Work in Process, credit Wages Payable D. debit Factory Overhead, credit Wages Payable 80. At the end of July, the month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet? A. Overapplied, deferred credit B. Underapplied, deferred debit C. Underapplied, deferred credit D. Overapplied, deferred debit 81. At the end of the fiscal year, the balance in Factory Overhead is small. This balance would normally be: A. transferred to Work in Process B. transferred to Cost of Goods Sold C. transferred to Finished Goods D. allocated between Work in Process and Finished Goods 82. The details concerning the costs incurred on each job order are accumulated in a work in process account, which is supported by a: A. stock ledger B. materials ledger C. cost ledger D. creditors ledger 83. Each account in the cost ledger is called a: A. finished goods sheet B. stock record C. materials requisition D. job cost sheet 84. Selected accounts with some debits and credits omitted are presented as follows: Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31 Direct materials X 31 Direct labor 450,000 31 Factory overhead X
146. The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production. 147. During the month of April, Cavy Company incurred factory overhead as follows: Indirect materials $11,000 Factory Supervision $4,000 Utilities $500 Depreciation (factory) $700 Small tools $300 Equipment rental $750 Journalize the entry to record the factory overhead incurred during April. 148. Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000. Determine (a) the predetermined factory overhead rate, (b) the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800, and (c) prepare the journal entry to apply factory overhead in April according to the predetermined overhead rate.
Factory overhead 8,976 149. The Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Calculate the predetermined overhead rate to apply factory overhead. $1,470,000 / 40,000 = $36.75 per machine hour 150. The Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. What is the amount that will be applied to all of the jobs for the month of April? 4,780 hours * $31.25 = $149,375 151. The Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. Prepare the journal entry to apply factory overhead. Work in Process 175,665 Factory Overhead 175,665 152. At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows: Job Direct Materials Direct Labor Machine Hours Job 765 $5,670 $3,500 27 Job 766 $8,900 $4,775 44