Question

Managerial Accounting

Selected T-accounts of Moore Company are given below for the just completed year Manufacturing Overhead 189,500 Credits ? Debits Bal. 1/1 Debits Bal. 12/31 Raw Material 30,000 Credits 150,000 40,000 Work in POCOS 35,000 Credits 105,000 195,000 214,500 515,000 Debits Bal. 1/1 Direct material Direct labor Overhead Bal 12/31 Factory Wages Payable 215,000 Bal. 1/1 Credits Bal. 12/31 16,500 210,000 11,500 Cost of Coods Sold Finished Goods 55,000 Credits Bal. 1/1 Debita Bal. 12/31 82,500 Required: 1. What was the cost of raw materials used in production during the year? 2. How much of the materials in (above consisted of indirect materials? 3. How much of the factory labor cost for the year consisted of indirect labor? 4. What was the cost of goods manufactured for the year? 5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer. 6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year? 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $11,750 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost? Complete this question by entering your answers in the tabs below. Reg 1 to 5 Reg 6 Red 7 Regs 1. What was the cost of raw materials used in production during the year? 2. How much of the materials in (1) above consisted of indirect materials? 3. How much of the factory labor cost for the year consisted of indirect labor? 4. What was the cost of goods manufactured for the year? 5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer. Show less 1. Cost of raw materials 2. Indirect materials 3. Indirect labor cost 4. Cost of goods manufactured 5. Unadjusted cost of goods sold

Answer 1

1) Cost of raw material used = 30000+150000-40000 = 140000

2) Indirect material = 140000-105000 = 35000

3) Indirect labor = 210000-195000 = 15000

4) Cost of goods manufactured = 515000

5) Unadjusted cost of goods sold = 55000+515000-82500 = 487500

6) Overhead rate = 214500/195000 = 110% of labor cost

7) Overhead applied = 214500

Actual overhead = 189500

Over applied overhead = 214500-189500 = 25000

8) Ending WIP = 34500

Applied overhead = 11750*1.1 = 12925

Direct material = 34500-11750-12925 = 9825