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    Managerial Accounting

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    1.What is the appropriate journal entry if $100,000 of materials were purchased on account for the month of August?

    a. Manufacturing Overhead Control 100,000
    Accounts Receivable Control 100,000

    b. Manufacturing Allocated 100,000
    Accounts Receivable Control 100,000

    c. Materials Control 100,000
    Accounts Payable Control 100,000

    d. Work-in-Process Control 100,000
    Accounts Payable Control 100,000

    2. What is the appropriate journal entry if direct materials of $50,000 and indirect materials of $3,000 are sent to the manufacturing plant floor?

    a. Manufacturing Overhead Control 3,000
    Materials Control 50,000
    Work-in-Process Control 53,000

    b. Work-in-Process Control 50,000
    Materials Control 50,000

    c. Work-in-Process Control 53,000
    Materials Control 53,000

    d. Work-in-Process Control 50,000
    Manufacturing Overhead Control 3,000
    Materials Control 53,000

    3. What would be the appropriate journal entry if the following labor wages were incurred in a furniture manufacturing company?

    Assembly workers $30,000
    Janitors $20,000

    a. Work-in-Process Control 30,000
    Manufacturing Overhead Control 20,000
    Wages Payable Control 50,000

    b. Work-in-Process Control 50,000
    Wages Payable Control 50,000

    c. Manufacturing Overhead Control 50,000
    Wages Payable Control 50,000

    d. Wages Payable Control 50,000
    Work-in-Process Control 50,000

    4.When a job is complete:

    a. actual direct materials, actual direct manufacturing labor, and allocated manufacturing overhead will comprise the total cost of the job

    b. Finished Goods Control is credited

    c. Work-in-Process Control is debited

    d. the cost of the job is transferred to Manufacturing Overhead Control

    5.The spreading of underallocated or overallocated overhead among ending work-in-process, finished goods, and cost of goods sold is called:

    a. the proration approach

    b. the adjusted allocation rate approach

    c. the write-off of cost of goods sold approach

    d. None of these answers are correct.

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    6.For 20X5, Marcotte's Animal Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information:

    Estimated Actual
    Manufacturing overhead costs $100,000 $120,000
    Machine-hours 20,000 25,000

    Using job costing, the 20X5 budgeted manufacturing overhead rate is:

    a. $6.00 per machine-hour

    b. $5.00 per machine-hour

    c. $4.00 per machine-hour

    d. $4.80 per machine-hour

    © BrainMass Inc. brainmass.com June 3, 2020, 11:44 pm ad1c9bdddf
    https://brainmass.com/business/accounting/managerial-accounting-294922

    Solution Preview

    1. c. Materials Control 100,000
    Accounts Payable Control 100,000

    Material will increase and because they are purchased on credit, accounts payable will increase

    2. d. Work-in-Process Control 50,000 ...

    Solution Summary

    The solution explains some multiple choice questions in managerial accounting

    $2.19

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