Question

In: Accounting

Based on the T-Accounts below, answer the following questions: Work in Process Wages Payable Finished Goods...

Based on the T-Accounts below, answer the following questions:

Work in Process		Wages Payable		Finished Goods Inventory
185,000	415,000	145,000	145,000	415000	385,000
125,000
170,000

Raw Materials Inventory		Manufacturing Overhead
250,000		50,000	170,000
	235,000	20,000
		105,000

What is the cost of direct materials used?

What is the cost of indirect materials used?

What is the cost of direct labour?

What is the cost indirect labour?

What is the cost of goods manufactured?

What is the cost of good sold?

What is the actual manufacturing overhead?

How much manufacturing overhead was allocated to jobs?

Is manufacturing overhead over or under-allocated? By how much?

Assuming Direct Labour as the cost driver, what is the predetermined manufacturing overhead rate as a % of labour cost?

Solutions

Expert Solution

What is the cost of direct materials used?

$ 185,000

What is the cost of indirect materials used?

$ 50,000

What is the cost of direct labour?

$ 125,000

What is the cost indirect labour?

$20,000

What is the cost of goods manufactured?

$ 415,000

What is the cost of good sold?

$ 385,000

What is the actual manufacturing overhead?

$ 175,000

How much manufacturing overhead was allocated to jobs?

$ 170,000

Is manufacturing overhead over or under-allocated? By how much?

Under allocated $ 5,000

Assuming Direct Labour as the cost driver, what is the predetermined manufacturing overhead rate as a % of labour cost?

136%

Predetermined overhead rate as % of Direct Labor cost = (Overhead Allocated / labor cost )*100

= (170000/125000)*100.

Note. It is Wages account instead of Wages payable.

ekkarill92 answered 1 year ago

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