Selected T-accounts of Moore Company are given below for the just completed year
ID: 2331647 • Letter: S
Question
Selected T-accounts of Moore Company are given below for the just completed year: Raw Materials Manufacturing Overhead 233, 800Credits Bal. 1/1 DebitS Bal. 12/31 16,000 Credits ? Debits 122,000 26,000 Work in Process Factory Wages Payable Bal. 1/1 Direct materials Direct labor Overhead Bal. 12/31 9, 500 182,000 4, 500 21,000Credits 473, 000 Debits 187,000Bal. 1/1 91,000 153,000 Credits Bal. 12/31 244,800 Finished Goods Cost of Goods Sold Bal. 1/1 Debits Bal. 12/31 41,000 Credits ? Debits 61,500 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 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 $8,250 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?Explanation / Answer
Solution:
Answer for 1.
Answer for 2.
Answer for 3.
Answer for 4.
Cost of goods manufactured for the year = 4,73,000
(Amount credited to work in progress)
Answer for 5.
Answer for 6.
Predetermined overhead rate =
(Manufacturing overhead applied / direct labour cost) * 100
= (2,44,800 / 1,53,000) * 100
= 1.6 * 100
Predetermined overhead rate = 160%
Answer for 7.
Answer for 8.
Working notes:
Less: cost of goods manufactured for the year
(amount credited to work in progress)
Particulars Amount ($) Raw material inventory at 1/1 16,000 Add: Purchase of raw materials + 1,22,000 Less: Raw material inventory at 12/31 - 26,000 Cost of raw materials put into production 1,12,000Related Questions
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