Question

selected T accounts for Moore Company

Selected T-accounts for Moore Company are given below for the just completed year: Raw Materials Manufacturing Overhead Credits 36,000 440,000 Debits 218,000 Credits Bal. 1/1 Debits Bal. 12/31 53,000 Work in Process Debits Credits 450,000 Bal. 1/1 Direct materials 79,000 330,000 Factory Wages Payable 172,000 Bal. 1/1 13,00 Credits 183,000 Bal. 12/31 24,00 Direct labor Overhead 154,000 261,800 Bal. 12/31 Finished Goods Cost of Goods Sold 45,000 Credit Bal. 1/1 Debits Debits Bal. 12/31 137,000 Required: 1. What was the cost of raw materials put into production during the year? Cost of raw materials S 423,000 2. How much of the materials in (1) above consisted of indirect materials? Indirect materials $ 93,000

Answer 1

6) Predetermined overhead rate = Manufacturing overhead cost applied / Direct materials cost
Predetermined overhead rate = $261,800/ $154,000	170%
7)
Actual manufacturing overhead cost for the year (debits)	$ 218,000.00
Applied manufacturing overhead cost	$ 261,800.00
Overapplied	$   43,800.00
8)
Ending Balance,work in process	$ 374,800.00
Less: Direct Labour cost	$   32,200.00
Less: Manufacturing overhead cost (170% x $32,200)	$   54,740.00
Direct materials (remaining bal.)	$ 287,860.00