Question

Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,000 of direct material cost, $2,500 of direct labour cost, and $1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 70% of direct labour cost. Any under- or overapplied overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): Purchased during the month Used in production Labour: $29,500 $30,500 Direct labour hours worked during the month Direct labour cost incurred Indirect labour costs incurred Manufacturing overhead costs incurred (total) 2,500 $26,500 $5,500 $18,500 Inventories: Raw materials (all direct) March 31 $7,500 Work in Process, March 31 $14,500 Work in Process inventory contains $5,500 of direct labour cost.

Answer 1

Answer co) $ 8500 Rase_Matend) Invenhovy_Account tr a n-Organisation requires the raw materials to prottie the finished goods inventory for sale. An entity may have aloequy Qvallability of_opeging rqw Materials inventory or Hit Yody purchase additional Yqw Materials as per requirement | Raw Apabends Iqueglory is the easel for the Orgogliqlyon_heater i will be debits such law material inventory account at the time of purchase An Organisation process this qu Mabelphin factivy to arrive finished gools. For this production process a company transfers the raw materials to the work in process and crefft the raw materials inventory account and at the end there will be some 641.99ce in race makerials inventory which is Qof_bansferred to the work-in-process for pralysten In the question, we have calculate the opening balance of I raw materials inventory as on March . It will be balance | amount offew adding mabegels bynsfeld in portation plus enting balance deluching by purch que made during the pifiol. Mallet company Materials Iquénfory Account Rqw AMI Particulares | Amt. Particulars To Opening Bilance 611 18500 By work-in Plocess 30000 galancing fiquel -- (Tygosferred in Rokychin) To Cath Alo (purchauer | 29500 By Closing Balance est 7 500 38000 36000 Answer 0) $ 8500 1