Question 1 - Rankin Food Products produces cane sugar syrup in bulk quantities, and uses process costing. There are three processing departments Mixing, Refining, and Packaging. Using process costing analysis, Rankin determined that the cost of the units completed and transferred out of the Mixing Department during the month was $11,000. Which of the following is the correct journal entry to record the cost of the units completed and transferred out to the next department?
Debit $11,000 to Finished goods inventory, credit $11,000 to Work in process - Mixing
Debit $11,000 to Work in process - Refining, credit $11,000 to Work in process - Mixing
Debit $11,000 to Work in process - Refining, credit $11,000 to Materials inventory
Debit $11,000 to Work in process - Mixing, credit $11,000 to Work in process - Refining
Question 2 - Falstaff Products estimated manufacturing overhead costs for the year at $500,000. Falstaff also estimated 8,000 machine hours for the year. Falstaff bases their predetermined manufacturing overhead rate on machine hours. On January 31, job 300 was completed. It required 12 machine hours to produce. How much manufacturing overhead was allocated to the job?
$62.50
$19.20
$750.00
$42.00
Question 3 - Haverhill Products just completed job number 440. In addition to direct labor and direct materials cost, Haverhill allocated $450 of manufacturing overhead to the job. Which of the following describes the correct journal entry to record the allocation of overhead to the job?
Debit Finished goods, credit Manufacturing overhead
Debit Work in process, credit Cash
Debit Manufacturing overhead, credit Work in process
Debit Work in process, credit Manufacturing overhead
Question 4 - Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
Total manufacturing overhead estimated at the beginning of the year: $140,000
Total direct labor costs estimated at the beginning of the year: $350,000
Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours
Actual manufacturing overhead outs for the year: $159,000
Actual direct labor costs for the year: $362,000
Actual direct labor hours for the year: 12,400 direct labor hours
Based on the data above, what was the allocation rate for 2012? (Please round to nearest whole percent.)
40%
44%
250%
228%