Question

Selected T-accounts of Moore Company are given below for the just completed year: ? Debits Manufacturing Overhead 186,200 Credits ? Bal. 1/1 Debits Bal. 12/31 Raw Materials 33,000 Credits 156,000 43,000 Work in Process 38,000 Credits 108,000 204,000 214,200 524,000 Debits Bal. 1/1 Direct materials Direct labor Overhead Bal. 12/31 Factory Wages Payable 221,000 Bal. 1/1 Credits | Bal. 12/31 18,000 216,000 13,000 Cost of Goods Sold Finished Goods 58,000 Credits ? Debits 21 Bal. 1/1 Debits Bal. 12/31 87,000

Answer 1

1) Raw material used = 33000+156000-43000 = 146000

2) Indirect material = 146000-108000 = 38000

3) Indirect labor = 216000-204000 = 12000

4) Cost of goods manufactured = 524000

5) Unajdusted cost of goods sold = 58000+524000-87000 = 495000

6) Overhead rate = 214200/204000 = 105% of labor cost

7) Applied overhead = 214200

Actual overhead = 186200

Over applied overhead = 214200-186200 = 28000

8) Ending WIP = 40200

Applied overhead = 12500*1.05 = 13125

Direct material = 40200-12500-13125 = 14575