Question
In: Accounting
The following T-accounts represent November activity. Materials Inventory EB (11/30) 57,100 Work-In-Process Inventory BB (11/1) 32,900...
The following T-accounts represent November activity.
| Materials Inventory | ||||
| EB (11/30) | 57,100 | |||
| Work-In-Process Inventory | ||||
| BB (11/1) | 32,900 | |||
| Dir.Materials | 86,800 | |||
| Finished Goods Inventory | ||||
| EB (11/30) | 101,000 | |||
| Cost of Goods Sold | ||||
| Manufacturing Overhead Control | ||||
| Applied Manufacturing Overhead | ||||
| 270,000 | ||||
| Wages Payable | ||||
| Sales Revenue | ||||
| 643,200 | ||||
Additional Data
| (a) | Materials of $113,800 were purchased during the month, and the balance in the Materials Inventory account increased by $11,300. |
| (b) | Overhead is applied at the rate of 150 percent of direct labor cost. |
| (c) | Sales are billed at 160 percent of cost of goods sold before the over- or underapplied overhead is prorated. |
| (d) | The balance in the Finished Goods Inventory account decreased by $29,000 during the month before any proration of under- or overapplied overhead. |
| (e) | Total credits to the Wages Payable account amounted to $200,000 for direct and indirect labor. |
| (f) | Factory depreciation totaled $58,250. |
| (g) | Overhead was underapplied by $26,020. Overhead other than indirect labor, indirect materials, and depreciation was $202,070, which required payment in cash. Underapplied overhead is to be allocated. |
| (h) | The company has decided to allocate 25 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.
Solutions
Expert Solution
| Materials Inventory | |||
| BB | 45800 | 86800 | Dir.Materials |
| Purchases | 113800 | 15700 | Indir. Materials |
| EB | 57100 | ||
| Work-In-Process Inventory | |||
| BB | 32900 | 373000 | Completed |
| Dir. Materials | 86800 | ||
| Dir. Labor ($270000/150%) | 180000 | ||
| Applied overheads | 270000 | ||
| EB | 196700 | ||
| Under-applied overhead | 6505 | ||
| Adj. EB | 399905 | ||
| Finished Goods Inventory | |||
| BB | 130000 | ||
| Completed | 373000 | 402000 | Cost of goods sold |
| EB | 101000 | ||
| Under-applied overhead | 3903 | ||
| Adj. EB | 205903 | ||
| Cost of Goods Sold | |||
| ($643200/160%) | 402000 | ||
| Under-applied overhead | 15612 | ||
| Adj. EB | 417612 | ||
| Manufacturing Overhead Control | |||
| Indir. Materials | 15700 | ||
| Indir. Labor | 20000 | ||
| Factory depreciation | 58250 | ||
| Other overheads | 202070 | ||
| EB | 296020 | ||
| Applied Manufacturing Overhead | |||
| 270000 | |||
| 26020 | |||
| 296020 | EB | ||
| Wages Payable | |||
| 180000 | Dir. Labor | ||
| 20000 | Indir. Labor | ||
| 200000 | EB | ||
| Sales Revenue | |||
| 643200 | |||
| 643200 | EB | ||
Working:
Allocation of under-applied overheads:
Work-in-process inventory: $26020 x 25% = $6505
Finished goods inventory: $26020 x 15% = $3903
Cost of goods sold: $26020 x 60% = $15612
ekkarill92 answered 1 year agoRelated Solutions
The following T-accounts represent November activity. Materials Inventory EB (11/30) 56,400 Work-In-Process Inventory BB (11/1) 32,600...
The following T-accounts represent November activity.
Materials Inventory
EB (11/30)
56,400
Work-In-Process Inventory
BB (11/1)
32,600
Dir.Materials
86,200
Finished Goods Inventory
EB (11/30)
101,000
Cost of Goods Sold
Manufacturing Overhead Control
Applied Manufacturing Overhead
264,000
Wages Payable
Sales Revenue
725,400
Additional Data
Materials of $113,600 were purchased during the month, and the
balance in the Materials Inventory account increased by
$11,000.
Overhead is applied at the rate of 150 percent of direct labor
cost.
Sales are billed at 180 percent...
The following T-accounts represent November activity. Materials Inventory EB (11/30) 56,200 Work-In-Process Inventory BB (11/1) 32,600...
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...
Which of the following are inventory accounts for a manufacturer? a. raw materials, work in process,...
Which of the following are inventory
accounts for a manufacturer?
a. raw materials, work in
process, and finished goods
b. direct labor, work in
process, and finished goods
c. manufacturing overhead,
raw materials, and direct labor
d. work in process, direct
labor, and manufacturing overhead
49. In a process cost system,
equivalent units of production are the
a. work done on physical
units expressed in fully completed units.
b. units that are
transferred to the next processing department.
c. units...
RUSH Using the key below, Accounts receivable Materials inventory Factory overhead Work in process inventory Finished...
RUSH
Using the key below,
Accounts receivable
Materials inventory
Factory overhead
Work in process inventory
Finished goods inventory
Accounts payable
Wages payable
Retained earnings (Income and/or Expense
account)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Where should a manufacturing company record the purchase
of materials on account?
3 and 12
4 and 11
15 and 12
Where should a manufacturing company record the transfer
(use) of direct materials in production?
7...
The following T-accounts represent September activity. Required: Compute the missing amounts indicated by the letters (a)...
The following T-accounts represent September activity.
Required:
Compute the missing amounts indicated by the letters
(a) through (i).
Materials Inventory
BB (9/1)
7,500
(a)
4,300
(b)
EB (9/30)
10,500
Work-In-Process
Inventory
BB (9/1)
20,600
180,500
(e)
121,000
87,700
EB (9/30)
18,000
Finished Goods
Inventory
BB (9/1)
13,800
(e)
(f)
EB (9/30)
(g)
Cost of Goods Sold
397,300
Applied Overhead
Control
(d)
Manufacturing Overhead
Control
121,000
4,300
36,200
30,600
2,200
Wages Payable
124,300
162,000
(c)
36,200
119,500
EB (9/30)
Accumulated
Depreciation—Plant...
The following T-accounts represent September activity. Required: Compute the missing amounts indicated by the letters (a)...
The following T-accounts represent September activity.
Required:
Compute the missing amounts indicated by the letters
(a) through (i).
Materials Inventory
BB (9/1)
7,500
(a)
4,000
(b)
EB (9/30)
9,300
Work-In-Process Inventory
BB (9/1)
22,600
181,500
(e)
121,000
84,200
EB (9/30)
19,000
Finished Goods Inventory
BB (9/1)
13,300
(e)
(f)
EB (9/30)
(g)
Cost of Goods Sold
397,700
Applied Overhead Control
(d)
Manufacturing Overhead Control
121,000
4,000
36,200
30,700
4,900
Wages Payable
124,300
162,000
(c)
36,200
119,500
EB (9/30)
Accumulated Depreciation—Plant...
The following T-accounts represent September activity: Required: Compute the missing amounts indicated by the letters (a)...
The following T-accounts represent September activity:
Required:
Compute the missing amounts indicated by the letters
(a) through (i).
Materials Inventory
BB (9/1)
8,000
(a)
5,100
(b)
EB (9/30)
9,600
Work-In-Process Inventory
BB (9/1)
20,800
179,200
121,000
98,300
EB (9/30)
17,000
Finished Goods Inventory
BB (9/1)
14,900
(e)
(f)
EB (9/30)
(g)
Cost of Goods Sold
396,900
Applied Overhead Control
(d)
Manufacturing Overhead Control
121,000
5,100
36,200
34,000
2,500
Wages Payable
124,300
162,000
(c)
36,200
119,500
EB (9/30)
Accumulated Depreciation—Plant &...
The following T-accounts represent September activity: Required: Compute the missing amounts indicated by the letters (a)...
The following T-accounts represent September activity:
Required:
Compute the missing amounts indicated by the letters (a) through
(i).
Materials Inventory
BB (9/1) 8,000
(a) 5,200
(b)
EB (9/30) 8,800
Work-In-Process Inventory
BB (9/1) 21,800
179,100
121,000
94,000
EB (9/30) 15,900
Finished Goods Inventory
BB (9/1) 13,500
(e) (f)
EB (9/30) (g)
Cost of Goods Sold
397,000
Applied Overhead Control
(d)
Manufacturing Overhead Control
121,000
5,200
36,200
34,300
3,500
Wages Payable
124,300
162,000 (c)
36,200
119,500 EB (9/30)
Accumulated Depreciation—Plant &...
The May 1st balances for the following accounts are: Raw Materials Inventory $ 6,500 Work...
The May 1st balances for the following accounts
are:
Raw Materials
Inventory
$ 6,500
Work in Process Inventory
$ 5,400 (Job 1006 -
$3,100; Job 1007 - $2,300)
Finished Goods Inventory
$
0
The transactions for May are as follows:
a. Purchased materials on account, $25,000.
b. Issued materials to production as follows:
Job 1006 -
$2,700
Job 1007 -
$5,500
Job 1008 -
$2,300
Job 1009 -
$3,800
Job 1010 -
$3,000
Job 1011 -
$3,700...
The May 1st balances for the following accounts are: Raw Materials Inventory $ 6,500 Work...
The May 1st balances for the following accounts
are:
Raw Materials
Inventory
$ 6,500
Work in Process Inventory
$ 5,400 (Job 1006 -
$3,100; Job 1007 - $2,300)
Finished Goods Inventory
$
0
The transactions for May are as follows:
a. Purchased materials on account, $25,000.
b. Issued materials to production as follows:
Job 1006 -
$2,700
Job 1007 -
$5,500
Job 1008 -
$2,300
Job 1009 -
$3,800
Job 1010 -
$3,000
Job 1011 -
$3,700...
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