Question

Check my work Selected T-accounts of Moore Company are given below for the just completed year: Debits Manufacturing Overhead 194,180 Credits Bal. 1/1 Debits Bel12/31 Raw Materials 32.000 Credits 154, eee 42.ece Work in Process 37. aael Credits 107, see 201.080 221,1ee Debits Bal. 1/1 direct materials Direct lebor Overhead Bal. 12/31 Factory Wages Payable 219,0a Sal. 1/1 Credits Bal. 12/31 175 214, eee 12,500 Finished Goods 57, eee Credits Cost of Goods Sold Debi- Bal. 1/2 Debits Bal. 12/31 BS, 5ee 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 $12,250 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. Req 1 to 5 Reg 6 Rea 7 Rega 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

Answer 1

Raw Materials, Bal. 1/1 Add: Debits Raw Materials available for use Less: Raw Materials, Bal. 12/31 Raw Material used into the production 32,000 154,000 186,000 (42,000) 144,000 Raw Material Used In Production 144,000 2) Raw material used Less: Direct material issued to production Indirect Materials used 144,000 (107,000) 37,000 Indirect Material 37,000 3) Total Factory wages used (Debit of Factory Payable) Less: Direct Labor issued to production Indirect Labor 219,000 (201,000) 18,000 Indirect Labor 18,000 521,000 Cost of goods Manufactured (i.e. credits in Work in Process)

5) Finished Goods, Bal. 1/1 Add: Cost of goods manufactured Total Cost of goods available for sale Less: Finished Goods, Bal 12/31 Unadjusted Cost of goods sold 57,000 521,000 578,000 (85,500) 492,500 Unadjusted Cost of goods sold 492,500 6) Predetermined Overhead rate Manufacturing Overhead Applied / Direct Labor 221,100 / 201,000 110% Predetermined Overhead rate 110% 7) Total Manufacturing Overhead Less: Applied Overhead to Work in process Under/Over) applied 194,100 (221,100) (27,000) Manufacturing Overhead is Overapplied by $27,000.

8) Work in process, Bal 1/1 Direct Material Direct Labor Overhead 37,000 107,000 201,000 221,100 566,100 (521,000) 45,100 Less: Cost of Goods Manufactured Work in process, Bal 12/31 Direct Labor Overhead (12,250 x 110%) 12,250 13,475 Work in Process, Bal 12/31 Less: Direct Labor Less: Overhead Direct Material 45,100 (12,250) (13,475) 19,375 Work in Process, Ending Balance Direct Material Overhead 45,100 19,375 13,475