Question

1a. How much of the factory labor cost for the year consisted of indirect labor?

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

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

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

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

f. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $8,000 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?

Selected T-accounts of Moore Company are given below for the just completed year: Raw Materials Manufacturing Overhead Bal. 1/1 Debits Bal. 12/31 15,000Credits ? Debits 230,000 Credits 120,000 25,000 Work in Process Factory Wages Payable Bal. 1/1 Direct materials Direct labor Overhead Ваї. 12/31 9,000 180,000 4,000 20,000Credits 470,000 Debits 185,000Bal. 1/1 90,000 150,000 240,000 Credits Bal. 12/31 Finished Goods Cost of Goods Sold Bal. 1/1 Debits Bal. 12/31 40,000 Credit:s ? Debits 60,000

Answer 1

1)	cost of raw materials used in prodcution during the year
	15000+120000-25000
	110000	answer
2)	Indirect materials
	110,000-90,000
	20,000	answer
3)	Indirect labor
	180,000-150000
	30000	answer
4)	cost of goods manufactured
	470,000
5)	unadjusted cost of goods sold
	40,000+470000-60000
	450000
6)	predetermined overhead rate
	240,000/150000
	160%
7)	overhead over applied
	applied			240,000
	actual overhead			230,000
	overhead over applied			10,000	answer
8)	Ending balance in work in process
	20,000+90,000+150000+240000-470000
	30000	answer
	direct labor cost				8,000
	overhead applied (8000*160%)				12800
	direct materials (balancing)				9,200	answer
	total				30,000