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In: Accounting

Selected T-accounts of Moore Company are given below for the just completed year: Raw Materials Bal....

Selected T-accounts of Moore Company are given below for the just completed year:

Raw Materials
Bal. 1/1 26,000 Credits ?
Debits 142,000
Bal. 12/31 36,000
Manufacturing Overhead
Debits 202,260 Credits ?
Work in Process
Bal. 1/1 31,000 Credits 503,000
Direct materials 101,000
Direct labor 183,000
Overhead 223,260
Bal. 12/31 ?
Factory Wages Payable
Debits 207,000 Bal. 1/1 14,500
Credits 202,000
Bal. 12/31 9,500
Finished Goods
Bal. 1/1 51,000 Credits ?
Debits ?
Bal. 12/31 76,500
Cost of Goods Sold
Debits ?

Required:

1. What was the cost of raw materials used in production during the year?

2. How much of the materials in (1) above consisted of indirect materials?

3. How much of the factory labor cost for the year consisted of indirect labor?

4. What was the cost of goods manufactured for the year?

5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer.

6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year?

7. Was manufacturing overhead underapplied or overapplied? By how much?

8. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $10,750 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?

Solutions

Expert Solution

1) cost of raw materials used in prodcution during the year
26000+142000-36000
132000 answer
2) Indirect materials
132000-101000
31000 answer
3) Indirect labor
207000-183000
24000 answer
4) cost of goods manufactured
503,000
5) unadjusted cost of goods sold
51000+503000-76500
477500
6) predetermined overhead rate
223260/183000
122%
7) overhead over applied
applied 223260
actual overhead 202,260
overhead over applied 21,000 answer
8) Ending balance in work in process
31000+101000+183000+223260-503000
35260 answer
direct labor cost 10,750
overhead applied (10750*122%) 13115
direct materials (balancing) 11,395 answer
total 35,260

ekkarill92 answered 1 year ago
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