Question

The following T-accounts represent November activity.

Materials Inventory
EB (11/30)	56,200

Work-In-Process Inventory
BB (11/1)	32,600
Dir.Materials	85,400

Finished Goods Inventory
EB (11/30)	99,000

Cost of Goods Sold

Manufacturing Overhead Control

Applied Manufacturing Overhead
		262,500

Wages Payable

Sales Revenue
		681,700

Additional Data

Materials of $115,100 were purchased during the month, and the balance in the Materials Inventory account increased by $10,200.

Overhead is applied at the rate of 150 percent of direct labor cost.

Sales are billed at 170 percent of cost of goods sold before the over- or underapplied overhead is prorated.

The balance in the Finished Goods Inventory account decreased by $28,100 during the month before any proration of under- or overapplied overhead.

Total credits to the Wages Payable account amounted to $200,000 for direct and indirect labor.

Factory depreciation totaled $47,130.

Overhead was underapplied by $25,940. Overhead other than indirect labor, indirect materials, and depreciation was $196,810, which required payment in cash. Underapplied overhead is to be allocated.

The company has decided to allocate 30 percent of underapplied overhead to Work-in-Process Inventory, 15 percent to Finished Goods Inventory, and the balance to Cost of Goods Sold. Balances shown in T-accounts are before any allocation.

Required:

Complete the T-accounts. Not all amount fields to be populated have accompanying descriptions.

Answer 1