Question

Analyze the following January activity for the T-accounts below. Syler-Wood's company's predetermined overhead rate is 200% of direct labor cost. Using the following, complete the accounts. Work in Process Inventory 50,000 Beginning WIP Direct Materials Direct Labor Applied Overhead To Finished Goods Ending WIP 60,000 Factory Overhead 138,000 140,000 Beginning FG Finished Goods Inventory 40,000 265,000 35,000 270,000 Ending FG 15. Direct Materials = _ 16. Direct Labor 17. Applied Overhead = 18. Amount transferred to Finished Goods = 19. Cost of Goods Sold = ring costs charged to production in January amounted to: 20. The totalm a. $275,000 b. $325,000 C. $335,000 d. $395,000

Answer 1

Work-in Process inventory				Factory Overhead
Beginning WIP	50000			Incurred	138000
Direct materials(Bal.fig.)	65000			WIP-Applied		140000
Direct labor(140000/200%)	70000			COGS-(OH over-applied)	2000
Applied OH(from FOH a/c)	140000
To Finished goods(From FG a/c)		265000		Finished Goods Inventory
Ending WIP		60000		Beginning FG	40000
	325000	325000		Trf. From WIP	265000
				Cost of Goods sold		270000
				Ending Finished goods		35000
				Cost of Goods sold
				Trf. From Fin. Goods	270000
				FOH over-applied		2000
				Adjusted COGS		268000
ANSWERS:
15. Direct Materials	65000
16. Direct Labor	70000
17.Appplied OH	140000
18. Amt. Trf. To Fin. Gds.	265000
19.COGS	268000
20.Total Mfg. costs charged to prodn. In January-
Direct materials(Bal.fig.)	65000
Direct labor(140000/200%)	70000
Applied OH	140000
a.	275000