Question

ework Saved Help Save & Exit Submit Check my work Selected T-accounts of Moore Company are given below for the just completed year: Raw Materials Manufacturing Overhead Bal. 1/1 35,000 Credits ? Debits 188, 480 Credits Debits 160,000 Bal. 12/31 45,000 Work in Process Factory Wages Payable Bal. 1/1 40,000 Credits 530,000 Debits 225,000 Bal. 1/1 Direct materials 110,000 Credits Direct labor 210,000 Bal. 12/31 Overhead 218,400 Bal. 12/31 ? Finished Goods Cost of Goods Sold Bal. 1/1 60,000 Credits ? Debits Debits 7 Bal. 12/31 90,000 19,000 220,000 14,000 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 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 $13,950 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost? answer. Complete this question by entering your answers in the tabs below.

Answer 1

1)Raw Material used = Bal 1/1 + Purchased (debits) -Bal 12/31

                 = 35000+160000 -45000

                 = 150000

2)Indirect Material = Raw material used -Direct material used (as debited to Work in process)

                 = 150000 - 110000

                  = 40000

3)Indirect labor = Wages for the current period -Direct labor

                 = 220000 -210000

                 = 10000

4)Cost of goods manufactured = credit to work in process = 530000