The Hemingway Company uses a job costing system. In April, material requisitions of $44,000 were issued (direct materials, $40,000) and materials purchases of both direct and indirect materials totaled $56,600. The ending balance in materials inventory was $18,400. What was the beginning balance?
A) $5,800
B) $31,000
C) $25,600
D) none of the above
Answer: A
Actual manufacturing overhead for 2009 amounts to $102,500, allocated manufacturing overhead for 2009 amounts to $98,700. By how much is manufacturing overhead over/underallocated?
A) $3,800 underallocated
B) $1,900 underallocated
C) $1,900 overallocated
D) $3,800 overallocated
Answer: A
When a job is completed in a job costing system, the journal entry involves which accounts?
A) a debit to finished goods inventory and a credit to work in process inventory for the cost of the job B) a debit to finished goods inventory and a credit to work in process inventory for the sales price of the job
C) a debit to cost of goods sold and a credit to finished goods inventory for the cost of the job D) a debit to work in process inventory and a credit to finished goods inventory for the cost of the job
Answer: A
