Question

Chapter 4 Class Activity 1. Use the following Manufacturing Overhead T-Account and the other account information to answer the following questions: MOH 24.000 26,000 2,000 The following detailed information is already included in the MOH account shown above (where applicable) $ 37,000 5,000 90,000 35,000 27,000 DM purchased Indirect material COGS DM used Direct labor Beg FG Corp. office depr. Indirect labor Beginning WIP Factory depr. Ending WIP Ending FG 7,000 15,000 100,000 4,000 37,000 61,000

Answer 1

Answer is given below

a) Total manufacturing cost for the period | $88,000| b) Cost of Goods manufactured $151,000 c) Inventoriable cost are the costs at which Finished goods inventory is valued Direct material, direct labor, Variable manufacturing overhead and fixed manufacturing overhead are part of the Inventoriable cost They are also referred to as the product cost since it is the cost at which inventory is valued d) Assuming over-absorbed overheads are insignificant Debit Credit 2,000 Journal entry General Journal Manufacturing overhead To Cost of goods sold (To record disposal of over-absorbed factory overheads) 2,000 e) Assuming over-absorbed overheads are significant Debit Credit 2,000 Journal entry General Journal Manufacturing overhead To Work in process To Finished Goods To Cost of goods sold (To record disposal of over-absorbed factory overheads) $394 $649 $957 Closing inventories Ratio Work in process Finished goods Cost of goods sold Closing Value 37,000 61,000 90,000 188,000 19.68% 32.45% 47.87% 100.00% Allocation $394 $649 $957 $2,000 Working notes: Schedule of Cost of Goods Manufactured Direct material consumed Direct Labor Prime Cost Manufacturing Overhead applied Total manufacturing cost Add: Opening work in process inventory $35,000 $27,000 $62,000 $26,000 $88,000 $100,000 $188,000 $37,000 $151,000 Less: Closing work in process inventory Cost of Goods Manufactured