Question

Question 1 Not complete Marked out of 0.50 P Flag question Determine and Use Overhead Rate The following selected ledger accounts of Cameron Company are for February (the second month of its accounting year): Materials Inventory Feb. 1 balance 31,500 February credits 105,000 February debits 104,000 Manufacturing Overhead February debits 163,350 Feb. 1 balance 11,600 February credits 166,650 Work in Process Inventory Feb. 1 balance 22,400 February credits 375,000 February debits: Direct material 95,000 Direct Labor 151,500 Man. overhead 166,650 Wages Payable February debits 193,500 Feb. 1 balance 45,000 February credits 185,000 Finished Goods Inventory Feb. 1 balance 76,500 February credits 386,000 February debits 375,000 a. Determine the amount of indirect material requisitioned for production during February. b. How much indirect labor cost was apparently incurred during February?

Answer 1

a

Total materials requisitioned for production

106000

(February Credits in Materials Inventory Account)

Direct Materials requisitioned

95000

(February Debit in Work in Process Inventory)

INDIRECT MATERIALS REQUSITIONED

11000

(106000-95000)

b

Total Wages in February

185000

(February Credits in Wages Payable Account)

Direct Labor

151500

(February Debit in Work in Process Inventory)

INDIRECT LABOR COST INCURRED IN FEBRUARY

33500

(185000-151500)

c

Total Manufacturing Overhead in February

163350

Direct Labor Cost

151500

MANUFACTURING OVERHEAD RATE BASED ON DIRECT LABOR COST

1.078218

(163350/151500)

d

Total Manufacturing Overhead incurred in February

163350

Total Manufacturing Overhead Applied in February

166650

MANUFACTURING OVERHEAD WAS OVERAPPLIED BY

3300

(166650-163350)

e

MANUFACTURING OVERHEAD WAS OVERAPPLIED In February

3300

MANUFACTURING OVERHEAD WAS OVERAPPLIED In January

11600

MANUFACTURING OVERHEAD WAS OVERAPPLIED First TWO MONTHS BY

14900

(3300+11600)

f

Cost of Production completed in February

375000

(February Credit in Work in Process Inventory= February Debits in Finished Goods Inventory)

g

Cost of goods sold in February

386000

(February Credit in Finished Goods Inventory)