Problem 3-11 T-Account Analysis of Cost Flows [LO3-2, LO3-3, LO3-4] Selected T-a

ID: 2332413 • Letter: P

Question

Problem 3-11 T-Account Analysis of Cost Flows [LO3-2, LO3-3, LO3-4]

Selected T-accounts of Moore Company are given below for the just completed year:

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.

Garriso

Raw Materials Bal. 1/1 23,000 Credits ? Debits 136,000 Bal. 12/31 33,000

1) cost of raw material used in production = 23000+136000-33000 = $126000

2) Indirect material = 126000-98000 = $28000

3) Indirect labour = 196000-174000 = $22000

4) Cost of goods manufactured = $494000

5) Unadjusted cost of goods sold = 48000+494000-72000 = $470000

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