Question

Selected T-accounts of Moore Company are given below for the just completed year: Manufacturing Overhead 188,400 Credits Debits Bal. 1/1 Debits Bal. 12/31 530,000 Debits Bal. 1/1 Direct materials Direct labor Overhead Bal. 12/31 Raw Materials 35,000 Credits 160,000 45,000 Work in Process 40,000 Credits 110,000 210,000 218,400 ? Finished Goods 60,000 Credits ? 90,000 Factory Wages Payable 225,000 Bal. 1/1 Credits Bal. 12/31 19,000 220,000 14,000 Cost of Goods Sold ? Debits Bal. 1/1 Debits Bal. 12/31 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 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 $13,950 of this balance is direct labor cost how much of it is direct materials cost? Applied overhead cost? year? Complete this question by entering your answers in the tabs below. Reg 1 to 5 Reg 6 Reg 7 Reg 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 1 Cost of raw materials 2 indirect materials 3 Indirect labor cost

Answer 1

1. Cost of raw materials used in production: Beginning balance of raw materials year Raw materials available Less: Ending balance of raw materials Raw materials used in production $35,000 $160,000 $195,000 $45,000 $150,000 2. Indirect materials: Raw materials used in production Less: Direct materials used in production Indirect materials used in production $150,000 $110,000 $40,000 3. Indirect labor cost in the factory labor cost: Factory labor cost incurred for the year Less: Direct labor cost incurred Indirect labor cost incurred $225,000 $210,000 $15,000

4. Cost of goods manufactured: Direct materials used Direct labor used Prime cost Add: Manufacturing overhead applied Gross works cost Add: Beginning work-in process $110,000 $210,000 $320,000 $218,400 $538,400 $40,000 $578,400 $48,400 $530,000 Less: Ending work-in process Cost of goods manufactured

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