Question

Selected T-accounts of Moore Company are given below for the just completed year: Manufacturing Overhead 203,800 Credits Debits - Manufacturing o ? Debits Bal. 1/1 Debits Bal. 12/31 Raw Materials 28,000 Credits 146,000 38,000 Work in Process 33,000 Credits 103,000 189,000 226,800 Factory Wages 509,000 ,000 Debits Debits Bal. 1/1 Direct materials Direct labor Overhead Bal. 12/31 Factory Wages Payable 211,000 Bal. 1/1 Credits Bal. 12/31 15,500 206,000 10,500 Cost of Goods Sold Finished Goods 53,000 Credits ? Debits Bal. 1/1 Debits Bal. 12/31 79,500 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 answ 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 $11,250 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.

Answer 1

Solution 1:
Cost of Raw materils used in Production
Beginning raw Materials	28000
Add: purchases of materials	146000
Total Raw materials Available	174000
Less: Ending Raw materials	38000
Cost of Raw materils used in Production	136000
Solution 2:
Indirect Materials
Cost of Raw materils used in Production	136000
Less: Direct materials used	103000
Indirect materials	33000
Solution 3:
Indirect labor cost
Factory Wages accrued (credits to Factory wages payable)	206000
Less: Direct Labor cost	189000
Indirect labor cost	17000
Solution 4:
Cost Of goods Manufactured
Cost Of goods Manufactured (Credit in WIP account)	509000
Solution 5:
Unadjusted Cost of goods sold
beginning Finished Goods inventory	53000
Add: Cost of goods manufactured	509000
Cost of goods available for sale	562000
Less: Ending Finished Goods inventory	79500
Unadjusted cost of goods sold	482500
Solution 6:
Predetermined Overhead rate
Overhead applied (from WIP account)	226800
/Direct labor	189000
Predetermined Overhead rate	120%
Solution 7:
Manufacturing Overhead under/overapplied
Overhead applied	226800
Actual Overhead (from manufacturing overhead)	203800
Overapplied overhead	23000
Solution 8:
Ending Balance in Work in process
Beginning balance in work in process	33000
Direct Materials	103000
Direct labor	189000
Overhead	226800
Less: Cost of goods manufactured	-509000
Ending Balance in Work in process	42800
Direct Materials and Applied overhead cost
Direct Labor Cost	11250
Predetermined Overhead rate	120%
Applied Overhead cost	13500
Direct Materials Cost (42800-11250-13500)	18050