Question

Show posted T-Accounts for all inventories, Cost of Goods Sold, Manufacturing overhead control, and manufacturing overhead allocated. SRS COST DATA Direct materials and supplies purchased on credit: $800 Direct materials used: $710 Indirect materials issued to various production departments: $100 Direct manufacturing labor: S1,300 Indirect manufacturing labor incurred by various production departments: $900 Depreciation on building and manufacturing equipment: $400 Miscellaneous manufacturing overhead incurred by various production departments: $550 o (Ordinarily, this would be detailed as repairs, photocopying, utilities, etc.) Manufacturing overhead allocated at 160% of direct manufacturing labor costs: ? Cost of goods manufactured: $4,120 Revenues: S8,000 Cost of goods sold (before adjustment for under- or overallocated manufacturing overhead): $4,020 Inventories, December 31, 2016 (not 2017): o Materials control: $100 o Work-in-process control: S60 o Finished goods control: S500

Answer 1

RAW MATERIAL INVENTORY
Balance		100	Work In Process Inv.		710
Accounts payable		800	Manufacturing Overheads		100
Ending Balance		10,000
MANUFACTURING OVERHEADS
Raw material Inv.		100	Work In Process Inventory		2,080
Wages payable		900	(Oh allocated)
Accumulated dep		400	(i.e. 160% *1300)
Cash		550
			Balance		130
WORK IN PROCESS INVENTORY
Balance		60	Finished Goods Inv.		4,120
Raw material Inv.		710
Wages Payable	Cash	1,300
Manufacturing Overheads		2,080
Balance		30
Finished Goods Inventory
Balance		500	Cost of goods sold		4,020
Work In Process Inv.		4,120
Balance		600
Cost of Goods sold
Finished Goods inventory		4,020
Balance		4,020