Question

Selected T-accounts of Moore Company are given below for the just completed year: Manufacturing Overhead 188,400 Credits 2 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 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? Complete this question by entering your answers in the tabs below.

Answer 1

1)	cost of raw materials used in prodcution during the year
	35000+160000-45000
	150000	answer
2)	Indirect materials
	150000-110000
	40000	answer
3)	Indirect labor
	220000-210000
	10000	answer
4)	cost of goods manufactured
	530,000
5)	unadjusted cost of goods sold
	60000+530000-90000
	500000
6)	predetermined overhead rate
	218400/210000
	104%
7)	overhead over applied
	applied			218400
	actual overhead			188,400
	overhead over applied			30,000	answer
8)	Ending balance in work in process
	40000+110000+210000+218400-530000
	48400	answer
	direct labor cost				13,950
	overhead applied (13950*104%)				14508
	direct materials (balancing)				19,942	answer
	total				48,400