Question

Problem 3-11 T-Account Analysis of Cost Flows [LO3-2, LO3-3, LO3-4) Selected T-accounts of Moore Company are given below for the just completed year Raw Materials Mano notoring Overbend BR. 1/1 25,000 Credits 7 Debit 203,200 Credits 140,000 31. 12/31 35,000 Work in Process Factory Wages Payable Bl. 1/1 30.000 Credits 500,ODD Del 205.30 a 171 Direct materiale 100.000 Credits Direct labor 180,000 BAL 12/31 223,200 14,000 200,000 9.000 Cost of Goods Sold Pinished Good 50,000 Debica Bal 13731 Required: 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 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 $10.500 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. Red 1 to 5 Reg 6 Reg 7 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

All help is greatly appreciated.

Answer 1

Answer-1- The cost of raw materials used in production during the year:-

Particulars	Amount
Beginning Balance of the raw materials	$25,000
Add: Purchases	$140,000
Total Available materials	$165,000
Less: Ending materials	$35,000
Materials put into production	$130,000

2-Indirect materials :-

Particulars	Amount
Total materials put into production	$130,000
Less: Materials used as direct materials	($100,000)
Materials used as indirect materials	$30,000

3-Indirect Labor:-

Particulars	Amount
Total labor put into production	$200,000
Less: Labor used as direct labor	($180,000)
Labor used as indirect labor	$20,000

4-The cost of goods manufactured for the year:-

Cost of goods manufactured during the year is $500,000, as given in the credit of work in process account.

5-The cost of goods sold or materials put into production for the year:-

Particulars	Amount
Beginning balance of the finished goods account	$50,000
Add: Cost of goods manufactured	$500,000
Total	$550,000
Less: Ending balance of the finished goods account	$75,000
Materials put into production	$475,000

6-the applied overhead rate:-

Predetermined overhead rate= Overhead applied/ Direct Labor Cost

=$223,200/ $180,000

=124%

7-The manufacturing overhead under applied or over applied:-

Particulars	Amount
Overhead applied	$223,200
Less: Actual overhead	$203,300
Overhead over applied	$20,000

8-Computation of ending balance in work in process inventory account:-

Particulars	Amount	Amount
Beginning balance of the work in process account		$30,000
Add: Direct materials	$100,000
Add: Direct Labor	$180,000
Add: Overhead	$223,200	$503,200
Total		$533,200
Less: Goods completed		$500,000
Ending Inventory		$33,200

Predetermined overhead rate= Overhead applied/ Direct Labor Cost

=$223,200/ $180,000

=124%

Direct Labor is $10,500

Overhead= $10,500*124%

=$13,020

The ending direct material:-

Direct material= Ending inventory- Direct labor-Overhead

=$33,200-$10,500-$13,020

=$9,680

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